The hospitality industry is in a unique position for the creation of an automated supply.

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 I. Introduction 

The hospitality industry is in a unique position for the creation of an automated supply

Chain. Most hospitality organizations function with two units, franchise locations and corporate owned locations. Currently most corporate-owned hotels procure their goods through the headquarters, and franchise hotels procure goods independently. If hotels integrated the entire spend of every hotel, franchise or corporate, they would stand to save substantially on purchases. However, hotels must make the procurement process simple and cost-attractive to the franchises in order to ensure their participation. Of the hotel chains that currently do this, virtually all use horribly outdated business practices, intensive manual labor, and time-wasting paperwork and processes. These can be easily replaced today with automated, electronic processes.

In hospitality organizations (hotels, casinos, resorts), the overall emphasis has been moving towards automating the purchasing and receiving process. In fact, many hotels are now electronically ordering directly to corporate offices and regional purchasing centres. The centralized system creates a purchase order and sends the order via integrated facsimile to vendor supplier. Once the order has been created in the system, an electronic copy of the purchase order is transmitted back to the unit level so that orders can be reconciled electronically as they are received. Another operation generates a "market list" from the ship and electronically sends the list to the corporate central purchasing system, which issues a purchase order and then transmits a copy of the purchase order back to the ship. The ship, like the hotel described above, also reconciles each purchase order based on receipt of goods.

1.Just in time

The characteristics of JIT purchasing differ from the traditional purchasing strategies. JIT purchasing principles, the main objectives are to achieve reduced inventory holding costs, increased quality levels and increased utilization among many others. JIT sourcing, in theory, provides many benefits to the buyer, but many buyers in practice are not implementing the requisites that are generally considered to be essential and resulting in a number of problems for their suppliers, which in turn affect the buyer. The JIT purchasing philosophy only leads to increased costs for the suppliers due to the fact that buyers tend to move the problems to the upstream of the supply chain. In other words, the gain of some parties is a result of redistribution of costs among the members. The problem is therefore to examine the benefits and the costs of JIT purchasing from both the suppliers’ and buyers’ point of views. The next is to improve constantly in time. Improve in manufacturing and service, and to do it one at a time rather than more at a time. When a problem comes along, the JIT believes that this is a challenge for improvement and does not try to cover it all up. This concept also aims to make sure that there is a good design control in order to avoid problems at a later stage. Simplicity of the manufacturing, instalment and usage of the product is also an aim for the “just in time” concept.

        Shortly mentioned but not least important are also visual control of package, focus on customer’s needs, production to customer demand and respect for the individual as a whole.

There are some rules adopted by the “just in time” concept in order to make it work. The first and major one is to eliminate waste as a whole. By this I mean that if something does not add value to the product or service, as far as the customer is concerned is a waste. An example may be too many unnecessary advantages in a machine or equipment, as some people find it hard to get used to things. Such wastes can be of overproduction, waste of waiting for raw materials, waste of movement, waste of inventories, motion, making defects, waste of process itself. And hence what the JIT strategy is, is to eliminate all wastes and this can be done by refraining from small inventories in the system and at a later stage to aim to eliminate more, always comply with the customer’s expectations for a better design and functioning of each product, be flexible at manufacturing, be a team player etc.

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Most of the large firms apply JIT purchasing for most of their outsourced products, subassemblies and raw materials. JIT purchasing is beneficial for most of the firms that implement all the prerequisites of JIT philosophy fully.

A. Housekeeping

It would seem obvious that an organized and uncluttered work place is conducive to efficient and effective manufacturing. Visiting some plants reveals that not everyone is sufficiently convinced. Poor housekeeping includes random location of tools, dirty equipment, poorly lighted areas, and cutting oil, material remnants, and chips on the floor. In general, poor housekeeping sends the message that: "What takes place here ...

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