Running head: BUSINESS SUPPLY CHAIN 1

Business Supply Chain

Author’s Name:

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Abstract

The article defines a business process, business process management (BPM), and the

supply chain used by the company. Additionally, the comparison between supply chain and

value chain is included, as are the reasons why processes are critical in ensuring an organization's

efficient performance. This consists of the steps of the value chain that enable an organization to

generate value that exceeds the cost of providing its products and services to clients and the role

of the supply chain in the flow of each. Michael Porter's definition of competitive advantage is

also addressed.

As discussed below, the supply chain has changed dramatically over the last two decades.

Companies that implemented efficient production, enterprise resource planning (ERP),

information systems, mobile supply chain apps, and process reengineering realize cost savings

while increasing their flexibility and product quality. Carnival Cruise Line's service development

as the industry leader has been accomplished via innovations that appeal to returning guests and

new consumers.
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Introduction

A business process is a set of interconnected activities that result in the delivery of a

product or service to a customer (Dumas et al., 2013). A business process is often referred to as a

collection of actions and activities that, when completed, result in the achievement of an

organization's objectives. The process must have clearly defined inputs and a single output. The

inputs are factors that contribute to a product's or service's added value. The factors are classified

as those that support the business process, those that affect the operational process, and those that

affect the management process.

Business process management (BPM) is a discipline, according to Harmon and Trends

(2010), that entails the end-to-end improvement of a business process through analysis, modeling

its behavior under various scenarios, implementing improvements, monitoring the improved

process, and continuously optimizing it. BPM is a constant activity that necessitates process

reengineering on an ongoing basis, as opposed to a one-time job. Among the many BPM

methods that a company involved in BPM may use are Lean and Six Sigma (Harmon & Trends,

2010). Supply Chain (SC) is a network that encompasses all people, resources, technology, and

activities involved in the product production and sale process, from the supply of raw materials

to manufacturers by suppliers through the final distribution to the end-user (Beske & Seuring,

2014).

Comparison between Supply Chains and Value Chains

While supply chain refers to the integration of activities involved in the sourcing,

conversion, logistics, and procurement processes, value chain (Michael Porter - Corporate

Strategy) refers to the sequence of a business's operations in which utility is added to the goods
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and services offered by an organization to increase the value of customers (Christopher, 2016).

The supply chain is the network of all functions that begins with the transformation of raw

materials into completed goods and ends with the delivery of finished products to the ultimate

consumers. On the other hand, the value chain is a collection of actions that contribute to the

development and enhancement of the product's value.

Michael Porter pioneered the concept of value chain, which includes five stages that

enable a company to generate value that surpasses the cost of providing goods and services to

customers (Closs, Speier & Meacham, 2011). The stages are as follows: incoming logistics;

operations, which include activities that add value; outbound logistics, which includes activities

that deliver finished goods to customers; sales and marketing; and service activities that add

value to products. The supply chain is the movement of all information, materials, goods, and

money between the different stages of product creation and sale. Additionally, the supply chain

encompasses all activities involved in receiving and fulfilling a customer's request. Marketing,

product development, operations, customer service, financing, and distribution are all possible

roles.

Michael Porter, a professor at Harvard Business School, described differentiation

advantage and cost advantage as two unique methods for a business to get a competitive edge

over its rivals in 1985. (Porter & Advantage, 1985). When a company provides competitive

goods and services that are similar to those provided by competitors, but at a cheaper price, this

is referred to as a cost advantage. Differentiation advantage occurs when a company offers

superior goods and services to its rivals. Strategic management, according to Porter, should be

concerned with the development and maintenance of competitive advantage.

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How information technology may serve as a catalyst for and enable innovation

Ptak and Schragenheim (2016) indicate that about two decades ago, companies spent

heavily in the development of manufacturing strategies and technology to enhance their

competitive edge. Businesses that adopted efficient manufacturing, enterprise resource planning

(ERP), information systems, and process reengineering achieved cost savings while increasing

their flexibility and product quality. The advent of ERP systems in the 1990s accelerated the

development of key business processes, and by 2000, companies had implemented ERP systems,

resulting in a significant increase in data availability and accuracy (Stefanou, 1999).

Additionally, the ERP software raised awareness of the critical nature of improved integration

and planning among logistical components. Mobile supply chain apps have facilitated real-time

visibility, enhanced cooperation, increased flexibility, hands-free operations, and dynamic

tracking for businesses.

Carnival Cruise Line's Service Development

Carnival Cruise Line is a market leader in contemporary cruising, operating 25 ships

intended to provide holiday experiences and entertainment for a diverse group of passengers.

Carnival Cruise Lines is a global cruise line headquartered in Doral, Florida. It is presently the

largest cruise line in terms of passengers transported annually, annual income, and the total

number of ships in the fleet (Kwortnik Jr, 2006).

Carnival Cruise Line has been continuously working on product and service

enhancements that appeal to both returning guests and new consumers. Carnival Cruise Line

launched a number of new improvements in April 2016, including the arrival of Carnival Vista.

Carnival Horizon's debut in 2018 will further extend the line's Fun Ship 2.0 improvement
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program with comparable ground-breaking amenities such as the world's first IMAX Theater at

Sea, with a three-deck-high screen.

Conclusion

As stated in the paper, supply chain is the integration of activities such as sourcing,

conversion, procurement, and logistics; value chain, on the other hand, refers to the sequence of

a business's operations in which utility is added to the goods and services offered by an

organization in order to increase the value of customers. Business procedures play a critical role

in maintaining an organization's efficiency. Information technology may both support and drive

innovation inside a company. For example, in the 1990s, businesses achieved cost savings while

increasing their flexibility and product quality. Carnival Cruise Line's service development as the

industry leader has been accomplished via innovations that appeal to both returning guests and

new consumers.
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Reference

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