Supply Chain Management: Quality Food and Drinks - Coursework Example

Supply Chain Management: Quality Food and Drinks Name Institution Name Date Table of Contents Introduction 3 Technology Incorporation to the Processes 3 Warehousing and Stocking 4 Effective Procurement and Recording 5 Capitalization of Resources 5 Use of Data and Statistics 6 Effective Communication 8 Conclusion 9 References 10 Appendices 11 As-Is To-be Diagram 11 Company Background 12 Introduction Quality assurance and effectiveness at the hotel is important and can be achieved through improvement of the supply chain. The major problems are procurement processes, stocktaking, and communication. Improving these processes address the requirements of the customers and champions the entire processes of the hotel. It ensures the costs are reduced while the direction towards efficiency is championed. The hotel should integrate the aspects of technology, effective communication, appropriate procurement strategies, and effective utilization of resources to champion the operations of the hotel. Technology Incorporation to the Processes Technology is important in addressing challenges that face supply chain. The current procedure of using books and paper records is ineffective (Vachon & Klassen, 2006). It also becomes difficult to analyze past records. The hotel should acquire one computer system with a basic database, which is able to record the products that are brought to the hotel. All products that come into the hotel should be recorded based on the time it was order, the time and date that it was delivered, the status of the product, the deadline and general description of the product. The technology can be achieved through acquiring technological requirements. The hotel management is ready to invest some funds in improving the operations, and these funds can be used to acquire the technological equipment (Zhang, Song & Huang, 2009). The database should reflect the requirements of the hotel and the integration of different processes in making the entire process effective. Furthermore, the use of the technology will enable the management to access a summary of the operations at the hotel and the general records of procurement at the hotel (Zhu & Sarkis, 2007). The information required is also easily obtainable and used to make a decision regarding the operations. The kitchen usually complements the requirements of the hotel and effective operations in kitchen result in efficiency in general operations (Cho et al., 2012). Apart from accommodation, the customer satisfaction in the dining area may result in accommodation booking. Warehousing and Stocking The kitchen products especially the perishable products should be stored as directed by the producers or suppliers. For example, milk and fruits expire faster when compared to potatoes and tomatoes (Zhang, Song & Huang, 2009). Therefore, the warehouse should be structured in a manner that it enables storage of foods ensuring quality and expiry dates are incorporated into the entire process. Apart from the labels from the producers, integral labels can be generated through the use of computers to set different expiry dates (Bruce, Daly & Towers, 2004). For example, if the milk experiences within 72 hours, the policy at the hotel should be changed so that the milk should not stay longer than 24 hours. It will prevent overstocking and also ensure fresh ingredients are used to produce the food and drinks. Apart from the general use of the computer at the entrance of the warehouse, it is important to have integral recording system based on the section of the kitchen. For example, a recording system should be in the bars, in the bakery, in the kitchen and additional recording that summarizes the operations at the kitchen (Bruce, Daly & Towers, 2004). Through such processes, it is possible to determine who handled the products, the length of storage, and other important fundamentals that are crucial in ensuring the products are fresh. Moreover, if certain policies have not adhered, an accompanying explanation should be in the records to understand the reasons and to be used in determining on future approaches to prevent reoccurrence of the problem. Effective Procurement and Recording The procurement process should be effective and a person versed with procurement should play an important role in the procurement process. It enables the individual to analyze the requirements and determine the appropriate amount (Vachon & Klassen, 2006). Moreover, the individual is able to advance on the best practices and improve the entire efficiency of the hotel (Sigala, 2008). The individual will act as an advisor. It may result in employing an individual who oversees all the procurements requirements at the hotel. The policy should be extended to other departments in the hotel so that a culture of efficiency and appropriate procurement is championed (Tang, 2006). The strategy will not only benefit the kitchen but other sectors of the hotel. Capitalization of Resources The purchase of the products is important, and the use of the products should be based on when the products were acquired. A methodology of “first in, first out” should be used to advance the requirements of the kitchen. It will prevent the storage of the foods and ingredients for longer periods. Furthermore, the strategy will determine the period in which the products stay in the warehouse and the reasons behind it (Vachon & Klassen, 2006). For example, the hotel can purchase twenty kilograms of sugar but the requirement in a day is five kilograms. The hotel is supposed to consume the first batch of sugar before restocking or even completing the first stock before proceeding to the next stock. The period between restocking should be followed by effective cleanliness (Bruce, Daly & Towers, 2004). For example, the containers used to stock the produce including space should be cleaned to prevent mixing of the different batches of products. In making food and drinks, there are complementary products and services (Zhu et al., 2010). For example, tea is made of hot water and milk, which is also used for the production of coffee, chocolate and other varieties of hot drinks. Vegetables are used for accomplishment, salads, and other uses. The first in, first out approach should incorporate these aspects in fulfilling the requirements of food production (Bruce, Daly & Towers, 2004). Purchasing products in bulk is important due to economies of scale and balancing the requirements of food offering means a large package can be purchased and distributed based on the expectations of the customers (Aghazadeh, 2004). Moreover, the process will supplement other processes that are associated with satisfying the requirements of the customers. Use of Data and Statistics Statistics is important in decision-making. The statistics or data can be obtained from different segments of operation; for example, during the order, storage, and a different section of kitchen usage and demands from the customers. The data and analyzing the data enables the hotel to determine the stocking limits. The purpose is to prevent dead stock, which will limit resource use. Each organization usually says it has minimal resources and packing the resources at the warehouse because of poor procurement methods results in additional wastages (Zhang, Song & Huang, 2009). Therefore, statistical analysis can be used to determine the allocation of resource across different sections of the hotel. For example, customers can be consuming twenty cans of soda, ten sandwiches, fifty pieces of chicken and a certain amount of rice. Through keeping the records and analyzing, the consumption and the information compared with the remaining stock will provide means of understanding when to restock. It will not only when to stock but also the amounts that are required for restocking. For instance, if daily consumption of tea is twenty cups. Therefore, twenty-five cups can be produced on a given day. The data collected can be analyzed and compiled to determine the amount to be sourced. It is important to consider the alternative uses of some of the products (Bruce, Daly & Towers, 2004). For example, leftover meat can be used to produce soups and therefore, the need for purchasing different soup will not be required. Even the soup from leftover meat can be used as a complementary marketing product from the hotel. Therefore, the data and statistical analysis of the data will not only benefit the kitchen and production but the entire operations of the hotel. For example, quality produce means that the processes, which the marketing department will employ, will become easier (Bruce, Daly & Towers, 2004). The purpose of any organization is to capitalize on the internal processes, to address any external process/problems, which can arise. Therefore, if the product is of poor quality, it become expensive for the hotel to market the products and the entire hotel; however, it the quality of the products is good, and can be achieved through analysis of the records, it becomes easier for the entire hotel in completing its processes. Effective Communication Communication is important to the processes at the workplace. Currently, the challenge is ineffective communication, which results in frequent conflicts and requiring conflict resolutions techniques. The conflicts result in poor services and sometimes ineffective processes. Effective communication should be encouraged through different sections of the hotel. For example, the bar supervisor and waiters should be able to address the requirements of the bar section effectively and transfer the information top the kitchen manager (Zhang, Song & Huang, 2009). For instance, effective communication ensures that the appropriate records and varieties based on the requirements of the customers are recorded accordingly. The kitchen segment of cooking is able to deliver the products depending on the requirements of the customers (Eastham, Sharples & Ball, 2007)). For example, meat products are frequently consumed with the support of wine. The wine is supplied from the bar while the meat from the kitchen. Hence, the waiter serving the customer should able to balance the requirement through effective communication. Effective communication ensures that the right amount of orders is made to fulfill the requirements of the customers. For example, some products are complementary in nature and can be used in different sections (Bruce, Daly & Towers, 2004). For example, hot water can be used both in the kitchen and at the bar. The right amount of water should be available to fulfill the requirements. This is only possible through effective communication among the targeted parties. The communication should be general and effective across the departments (Vachon & Klassen, 2006). For example, procurement functions cannot be successful without the inclusion of management and financial department. The communication across these departments may be ineffective meaning that the entire process is affected by poor communication. Championing effective communication prevents or eliminates chances in which misunderstandings may occur. Conclusion In conclusion, technology plays an important role in procurement and supply chain requirements. The world is changing to a technology based and the inclusion of technology improves the processes at the hotel. The hotel is ready to invest, and the best investment is acquiring technological components. Stocking keeping and warehousing requirements and strategies should be championed. Internal recording system should be in place to address the requirements of freshness and preventing spoilage of foods. Therefore, the external labeling (manufacturers) can be complemented with internal recording based on the technological requirements. The resources should be used based on the general requirements of the hotel and the theory of “first in, first out”: it will ensure the food and produced while fresh. The products that were acquired first are used, the packaging storage should be cleaned, and highest levels of safety and health should be championed. Statistics should be used to quantify the resources and ingredients used. It will enable effective decision making because the data is easy to analyze because the technology system will do the recording and through simple manipulation, the data can be used to the advantage of the hotel. A collection of the data also informs on the best practices to sustain the operations at the hotel. Effective communication is important to the general operations of the hotel. It highlights the effective relationship between the different stakeholders in the hotel. Effective communication also prevents conflicts and advances the culture with a focus on achieving the aims and objectives of the hotel. References Aghazadeh, S. M. (2004). Improving logistics operations across the food industry supply chain. International journal of contemporary hospitality management, 16(4), 263-268. Bruce, M., Daly, L., & Towers, N. (2004). Lean or agile: a solution for supply chain management in the textiles and clothing industry?. International journal of operations & production management, 24(2), 151-170. Cho, D. W., Lee, Y. H., Ahn, S. H., & Hwang, M. K. (2012). A framework for measuring the performance of service supply chain management. Computers & Industrial Engineering, 62(3), 801-818. Eastham, J., Sharples, L., & Ball, S. (2007). Food supply chain management. Taylor & Francis. Sigala, M. (2008). A supply chain management approach to investigating the role of tour operators in sustainable tourism: the case of TUI. Journal of Cleaner Production, 16(15), 1589-1599. Tang, C. S. (2006). Perspectives in supply chain risk management. International Journal of Production Economics, 103(2), 451-488. Vachon, S., & Klassen, R. D. (2006). Green project partnership in the supply chain: the case of the package printing industry. Journal of Cleaner production, 14(6), 661-671. Zhang, X., Song, H., & Huang, G. Q. (2009). Tourism supply chain management: A new research agenda. Tourism Management, 30(3), 345-358. Zhu, Q., & Sarkis, J. (2007). The moderating effects of institutional pressures on emergent green supply chain practices and performance. International Journal of Production Research, 45(18-19), 4333-4355. Zhu, Q., Geng, Y., Fujita, T., & Hashimoto, S. (2010). Green supply chain management in leading manufacturers: Case studies in Japanese large companies. Management Research Review, 33(4), 380-392. Appendices As-Is To-be Diagram As-IS To-Be Lack of technology Use of a simple database Poor warehousing and stocking Effective warehousing and stock keeping Ineffective procurement and recording Strategic procurement and recording Ineffective use of resources First in First Out Random purchase Use of statistics to estimate purchase Poor communication channels Involvement of all the employees to improve quality of service Company Background Herod Hotel is experiencing challenges when ordering and stock keeping. The major challenge is in the kitchen where ingredients are of poor quality because of storage. For example, stale ingredients are used to produce the final products. The customers have continuously complained, and the management wants to address in the kitchen problem conclusively. However, it is important to ensure the ingredients and other requirements in the kitchen are available at the appropriate time. Herod Hotel is ready to invest UA$5,000 in the project provided the ideas are viable. Read More