New Trends in IT and its Impact on Supply Chain Management in “Hospitality Industry”

Mohammed AsifuddinStudent, MBA-TH, NITHM, HYDERABAD

author e-mail: mohammedasifonline@gmail.com

Objectives of the Study

• To understand the role and importance of Information technology in SCM

• To discuss the New trends and innovations in Technologies in Hospitality industry

• To know the Impact of new changes and innovations on Supply chain management

Hospitality industryThe hospitality industry is a broad category of fields within the service industry that includes: • Hotels, • Restaurants, • Transportation• Theme parks,• Cruise line, • Event planning,

– and additional fields within the tourism industry.

What is a Supply Chain Management ?The management of the flow of goods and services. It includes the movement and storage of raw materials, inventory, and finished goods from point of origin to point of consumption.

Supply Chain Management (SCM)• Major functions of supply chain are marketing, manufacturing,

procurement, operations, inventory, warehousing, distribution and customer service.

• The process begins with customer order and ends with delivery of goods and services.

• These functions are managed through supply chain participants who could be many at each stage in the chain.

• Supply chain consist of all stages involved in servicing the customer to fulfill the expectations.

• A supply chain is an extended enterprise where participants in the chain have specific contributing roles to the goal of reaching the customer.

Supply Chain Management (SCM)Main target is

– The Right product– At the right place– the right Quantity– the right Quality– the right Price

Information Technology in Supply Chain

IT is very important ,because

• To sustain in highly competitive marketplace, • To innovate new ways to streamline to seamless supply and

optimize productivity. • Better visibility within the supply chain, • To enable more control over the business and stay ahead of the

competition. • To simplify the supply chain management, which will enable your

business to operate more efficiently, • To reduce your operational costs. • To enhance customer satisfaction and retention

Research Findings

New trends in IT in Supply Chain - (Hospitality Industry)

• Hosted partners• Computerized Shipping and Tracking• E- Commerce and Applications• Live inventory control • Radio Frequency Identification (RFID)• Simplified Supply Chain• Demand Management• Strategic/Global Sourcing -GDS

New trends in IT in Supply Chain (Hospitality Industry)

Hosted partners or Branded Network system or Associate partner system is the new trend in Hospitality.

• Hotel sector : – OYO Rooms– OYO Rooms is a branded network of hotels. OYO partners with hotels with the aim of

standardization on various measures in each room including free Wi-Fi and breakfast, flat-screen TVs, spotless white bed linen, Hygienic toiletries, 6-inch shower heads, a beverage tray and so on.

– The booking and managing a Rooms is pretty easy with just 2-3 steps .– Time saving, low level supply chain required, No manual supply is required.

• Travel sector :– OLA cabs, UBER cabs– GPS enabled transportation system makes reduce the accessible time and helps to reach guest

location without asking anyone.– Application connected with Live available inventory and near by available cabs with GPS help– No manual assistance required, possibility of Bill details before the ride.

New trends in IT in Supply Chain (Hospitality Industry)

• Food & restaurant sector :– Advance Booking and reserving the desired table before reaching the hotel– SWIGGY takes and delivers the order at your door step.– Live available restaurants near by the current location and deliver of the

orders.

• Radio Frequency Identification (RFID)– It is a vital piece of technology that can provide innumerable benefits to the

business owner. – it allows for easier and more consistent tracking, enabling business owners to

have maximum control and visibility over their products at all times. – Since RFID chips provide computerized product management, they can

eliminate the potential for errors, simplify the supply chain, and reduce operating costs.

– Widely used in transportation sectors.

New trends in IT in Supply Chain (Hospitality Industry)

• E-Commerce and Applications:

It describes the process of buying, selling, transferring, or exchanging products, services and other information through internet.

It also refers to the paperless exchange of business information using Electronic Data Interchange (EDI) and related technologies.

EC systems replace all or key parts of paper-based work flow with faster, cheaper, more efficient, and more reliable communications between machines.

Online presence of companies makes much difference in choosing to purchase the products or services where a company a website gets a good response than the other.

The New innovations and technologies in E-commerce :360 Degree panoramic view, Review site tracts, Wi-Fi technology

New trends in IT in Supply Chain (Hospitality Industry)

• E-Commerce and Applications:

It describes the process of buying, selling, transferring, or exchanging products, services and other information through internet.

It also refers to the paperless exchange of business information using Electronic Data Interchange (EDI) and related technologies.

EC systems replace all or key parts of paper-based work flow with faster, cheaper, more efficient, and more reliable communications between machines.

Online presence of companies makes much difference in choosing to purchase the products or services where a company a website gets a good response than the other.The New innovations and technologies in E-commerce :

360 Degree panoramic view, Review site tracts, Wi-Fi technology

New trends in IT in Supply Chain (Hospitality Industry)

Conclusion

In order to improve as a business, it’s essential to continually adapt to emerging technologies in order to stay ahead of the competition. By integrating modern technologies into the business plan, can greatly enhance the productivity as a company, while cutting costs and improving customer satisfaction and client retention. Customers will likely be turned off of a business that routinely has shipping delays, shipping errors, or products that are out of stock weather it might be tangible or intangible products. Enhancing the supply chain can minimize risk and improve your reputability in the eyes of the public. Through the use of technologies you can streamline your supply chain and create an easier, cheaper, and more accurate shipping process.

References :

Philip kotler, Managing Marketing Channels, Principles of Marketing, 2nd Edition(1999).Mr.Saurabh Singh, TTF meet, Hyderabad 2016.Mr.Rajiv Kumar, Air Asia south India Meet,(2015), Manager commercial sales & Distribution. Chennai, India.Mr.Kumar, Summer product launch Conference (2016). South India Sales manager, Annual Conference of the Make my trip associated partners meet, Hyderabad. By Lisa Terry, Hospitality Logistics: Supply Chains Made to Order, http://www.inboundlogistics.com/cms/article/hospitality-logistics-supply-chains-made-to-order/Wiki : Supply chain management, https://en.wikipedia.org/wiki/Supply_chain_management

Topic"New Trends in IT and its Impact on Supply Chain Management in Hospitality Industry “

Author Mohammed Asifuddin

Paper presenter Mohammed Asifuddin

Designation Student, MBA -TH, NITHM, Hyderabad

VenuePendekanti Institute of Management, Ibrahimbagh, Hyderabad, Telangana

Regards Seminar Theme Logistics & Supply Chain Management – Issues,

Challenges and ProspectsDate 19-20th Feb 2016