"The integration of key business processes from end users through original suppliers that provides products, services and information that add value for customers and other stake holders."
"Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain as efficiently as possible. Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption". (wikipedia.com)
SCM in tourism will start from planning of a product, identifying the different sectors to be included in the complete tourism product and also, in each sector of the product, The management of the raw material , inventory of raw material and delivery of the services.
Tourism: An industry
"Tourism denotes the temporary, short term movement of people to destination outside the place where they normally live and work and their activities during their stay at these destinations".
Tourism is a multi segment industry. It is an industry where the products are consumed on the spot forming invisible exports. It is also a fragmented industry with high complexity due to the price sensitive nature of demand and the intangibility, perish ability and inseparability.
Tourism, like all other supply chains, operates through business-to-business relationships, and supply chain management can be applied to deliver sustainability performance improvements alongside financial performance, by working to improve the business operations of each supplier in the supply chain. The main differences between tourism supply chains and those of other sectors are that tourists travel to the product, and the product that they buy has a particularly high service component - in other words, it involves a higher proportion of people in the immediate production of the holiday experience.
Supply Chain Management in tourism
The aim of supply chain management is to eliminate waste in the chain and to improve the customer service. The elimination of waste for example waiting time, inventory and production of non-requested products leads to lower costs. The improved customer service by means of, interlinked processes, lead to preferred suppliers and to a bigger turnover. All this leads to higher productivity (more income/ less costs). In tourism it plays a very important role to deliver the quality service with minimum gaps or reduced gaps.
Shortened product life cycles, increased competition, and heightened expectations of customers have forced many leading edge companies to move from physical logistic management towards more advanced supply chain management. Therefore, in many cases, the only possible way to further reduce costs and lead times is with effective supply chain management.
In addition to cost reduction, the supply chain management approach also facilitates customer service improvements. It enables the management of inventories, transportation systems and whole distribution networks so that organizations are able meet or even exceed their customers' expectations.
Tourism supply chains involve many components - not just accommodation, transport and excursions, but also bars and restaurants, handicrafts, food production, waste disposal, and the infrastructure that supports tourism in destinations. These all form a part of the holiday product that is expected by tourists when they purchase holidays, quality, depends on performance at all the links in the tourism supply chain.
A further aspect of the tourism supply chain is the activities of customers while on holiday, particularly in relation to their behavior, and what they source for themselves in particular situations.
The main strategies in any supply chain are sourcing strategy, distribution strategy, invent