SURIGAO DEL SUR STATE UNIVERSITY

CAGWAIT CAMPUS
Cagwait, Surigao del Sur

SUPPLY CHAIN MANAGEMENT IN

HOSPITALITY INDUSTRY
HPC 4

First Semester
2020 - 2021
MODULE 4 ( FINAL)
JOHANNES V. GLORIA
LOWELYN O. QUEZADA
Course Instructor

Student’s name: _________________________________

Major/Section: __________________________________
Time: __________________________________
CHAPTER 9 Aligning Supply Chains

Objectives:
At the end of this chapter the students are able to:
1. Determine the importance of supply chain alignment.
2. Classify the steps to align the supply chain.
3. Value the importance of Aligning supply chain to the business industry.

Discussion

What is Supply Chain Alignment?

Supply chain alignment concerns the fit between an organization's supply strategy and its overall
corporate and business strategies and policies.
Some managers believe that there are universal definitions of good or bad supply chains. We often
see companies attempt to build the most efficient supply chain, regardless of whether their market
strategy is to compete on price. Optimizing cost and inventory may come at the expense of lead-
times, flexibility and risk. Your supply chain needs to compete the same way your company does.
Supply chains cannot be measured in absolutes or designed in isolation of the corporate strategy.

Here are six steps to align your supply chain with your corporate strategy:

1.Define and communicate a clear corporate strategy. One of the biggest failure points in aligning
strategy is when the supply chain organization doesn’t know what to align with. Strategies cannot be
too limited and fail to consider and prioritize all the market requirements and factors on which
participants compete (features, price, delivery, etc). And strategies cannot be platitudes promising all
things to all people. Corporate strategy needs to define how you are going to be different and better
than your competitors, and it needs to set specific, measurable goals. Then the strategy needs to be
communicated to the organization thoroughly and repeatedly.
2.Identify the areas of your corporate strategy that are enabled by the supply chain. You need
to connect the dots between your strategic goals and how those get delivered by the company. This
process defines what your supply chain needs to be good at, and it allows you to prioritize supply
chain objectives. Ask the question, "What part of my core competence and competitive
differentiation falls within or derives from my supply chain activity?" This step is especially critical
in making in-house/outsource decisions.
3. Align supply chain performance metrics with the corporate strategy. One of the most common
issues we see is the belief that there are standard supply chain performance measures, and the
company should strive to maximize them all. This belief fails to account for the fact that there are
tradeoffs in optimizing different goals. There are also no absolutes in competitive strategy. Goals
should be set based on your performance relative to your competitors.
We have a client who had operated their supply chain with the goal of shipping product within one
day after an order. But their mature market no longer needed that level of performance. Relaxing that
delivery requirement opened up a significant opportunity for inventory improvement. It is important
to note that they didn't stop delivering in a timely manner or stop measuring delivery performance;
they just re-prioritized their goals to optimize a different objective.
4. Structure your supply chain to optimize the strategic goals. This step is where you address the
elements of supply chain design: Supply chain network, locations, supplier selection and business
terms, inventory and planning policy, organizational structure. Supply chains that are optimized for
cost efficiency will look different than supply chains that are optimized for flexibility and
responsiveness. Your organization and the skill sets of your people will be different, too.
5. Align incentives end to end. Internal performance evaluations and bonus structures need to match
the aligned metrics that have been set. Supplier performance management and business models
should align the suppliers' incentives with yours. Don't forget that channel and demand management
are part of the supply chain, too. Build a robust S&OP process and drive your sales and marketing
teams with objectives that aren't at odds with your supply chain objectives. One common failure is
when sales and marketing have no incentive to control inventory.
6. Keep refreshing the strategy and alignment process. Most companies have strategic planning
cycles of one to three years, but we have seen companies that literally go decades without re-aligning
their supply chain strategy. Put your supply chain strategy on the same schedule as the rest of your
planning.

No. 1
Direction: Make a spider web in the following words. Write your answer in a yellow
paper/bond paper. Please don’t forget to write your complete name, course, subject and
time. Attach your answer to the module.
1. Alignment of Supply Chain
2. Strategies to supply alignment

No. 2

Explanation. Write your answer to the following space provided.

1. What are the values and strategies that you can contribute for the alignment of the supply chain?
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CHAPTER 10 Supply Chain Performance
Measurement and Financial Analysis

Objectives:
At the end of this chapter the students are able to:
1. Determine the importance of supply chain alignment.
2. Classify the steps to align the supply chain.
3. Value the importance of Aligning supply chain to the business industry.

Discussion

Supply Chain Performance Metrics commonly used:

• On-time delivery 90%
• Quality of goods/services 83%
• Service capability/performance 69%
• Price competitiveness 55%
• Compliance with contract terms 51%
• Responsiveness 50%
• Lead time 44%
• Technical capability 34%
• Environmental, health, and safety performance 30%
• Innovation 29%

Supply Chain Performance Metrics

• Successful supply chain performance measurement relies on appropriate metrics
that capture the entire essence of the supply chain process.
• Cost has long been recognized as an important metric for determining
efficiency.
• The focus on minimizing total supply chain cost requires measuring the cost
tradeoffs when making changes to the configuration of the supply chain.
Developing Supply Chain Performance Metrics
• The development of performance metrics program should be a team effort
• Involve customers and suppliers, where appropriate, in the metrics development
process
• Develop a tiered structure for the metrics
• Identify metric “owners” and tie metric goal achievement to an individual’s or
division’s performance evaluation
• Establish procedure to mitigate conflicts arising from metric development and
implementation.
• Secure top management support for supply chain metrics development

The Supply Chain–Finance Connection

• Supply chain performance has high impact on financial performance

• Logistics service affects sales/marketing and corporate profitability.
• Financing inventory affects the amount of capital required to fund the business.
The Supply Chain Financial Impact
• Supply chain plays a critical role in determining the levelof profitability.
• A major objective for any corporation is to produce a satisfactory return for
stockholders.
• Corporate financial efficiency is judged by the profit it generates in relationship
to the assets utilized, or its return on assets (ROA).

Supply Chain Service Financial Implications

• The results of supply chain service failures are:
Costs to correct problems
Cost of lost sales
• When service failures occur, some customers experiencing the service failure
will request that the orders be corrected and others will refuse the orders.
• The refused orders represent lost sales revenue that must be deducted from total
sales.
• For the rectified orders, the customers might request an invoice deduction to
compensate them for any inconvenience or added costs.
• Some customers may switch their purchase to competitors permanently and
never return. The cost of lost sales can be high when this happens.

No. 1
Explanation

1. In your own idea, elucidate the process measure categories.

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2. How can the supply chain impacts the balance sheet?
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3. Explain the supply chain impact on return on assets.
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4. Elucidate Supply Chain Service Financial Implications
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Chapter 11 Supply Chain Technology— Managing Information Flows

 Objectives:
At the end of this chapter the students are able to:
1. Determine the importance of supply chain alignment.
2. Classify the steps to align the supply chain.
3. Value the importance of Aligning supply chain to the business industry.

DISCUSSION

Information Technology and Supply Chains

•Information, along with materials and money, must readily flow across the supply chain to enable
the planning, execution, and evaluation of key functions.
•Each participant in the supply chain needs relevant information to make effective forecasts and
operational decisions.
•Existing supply chain information technologies support timely, cost-efficient sharing of information
between suppliers, manufacturers, intermediaries, logistics services providers, and customers.
Six Drivers of Supply Chain Excellence

Related Tools

•Supply chain collaboration tools help users integrate their information technology systems with those of
trading partners to streamline and automate supply chain processes.

•Data synchronization applications provide a platform for manufacturers, distributors, and retailers to
aggregate and organize item-related data.

•Spreadsheets and database software provides managers with handy, portable tools for gathering,
consolidating, and analyzing supply chain data.
Adaptive Supply Chain Networks (ASCN)
•These integrated, flexible networks of companies, technology tools, and processes focus on customers and
their changing requirements. An effective ASCN can sense and respond to changes in real time, allowing the
network to prevent or minimize supply chain problems.
•ASCNs help meet the growing need for supply chain connectivity and collaboration. Connectivity provides
visibility.
Adaptive Supply Chain Networks
Reference:

https://www.carecprogram.org/uploads/Chapter-5-Supply-Chain-Performance-Measurement-and-Financial-
Analysis.pdf

https://www.carecprogram.org/uploads/Chapter-6-Supply-Chain-Technology-Managing-Information-
Flows.pdf

https://www.carecprogram.org/uploads/Ch16-Strategic-Challenges-Emerging-Changes.pdf

https://www.industryweek.com/leadership/article/21946086/six-steps-to-align-supply-chain-with-corporate-
strategy
 FINAL EXAMINATION
HPC 4
Name: _________________________________________ Date: _______________
Course/Major: __________________________________ Section: ____________
I. Identification. (x2)

1. ______________________concerns the fit between an organization's supply strategy and its

overall corporate and business strategies and policies

2. ______________________cannot be measured in absolutes or designed in isolation of the

corporate strategy

3. _____________________should be set based on your performance relative to your competitors.

4. _____________________has long been recognized as an important metric for determining
efficiency.
5. _____________________service affects sales/marketing and corporate profitability.
6. _____________________financial efficiency is judged by the profit it generates in relationship to
the assets utilized, or its return on assets
7. _____________________applications provide a platform for manufacturers, distributors, and retailers
to aggregate and organize item-related data.

8. _______________________and database software provides managers with handy, portable tools for
gathering, consolidating, and analyzing supply chain data.

9. _______________________help meet the growing need for supply chain connectivity and collaboration.
Connectivity provides visibility.
10. One common failure is when sales and marketing have no incentive to_______________
11. _______________Supply Chain Performance Metrics for lead time.
12. _______________Supply Chain Performance Metrics for innovation.
13. The development of performance metrics program should be a _____________
14. support for supply chain metrics development
15. Supply chain performance has high impact on ___________________
16. A major objective for any corporation is to produce a satisfactory return for _______________
17. _______________________along with materials and money, must readily flow across the supply
chain to enable the planning, execution, and evaluation of key functions.
18. ________________and inventory may come at the expense of lead-times, flexibility and risk.
19. Supply chains cannot be measured in absolutes or designed in isolation of the ________________
20. ____________________cannot be too limited and fail to consider and prioritize all the market
requirements and factors on which participants compete (features, price, delivery, etc).
21. ___________________to define how you are going to be different and better than your
competitors, and it needs to set specific, measurable goals.
22. You need to connect the dots between your strategic goals and how those get delivered by the
_____________________
23. __________________your supply chain to optimize the strategic goals
24. __________________ performance evaluations and bonus structures need to match the aligned
metrics that have been set.
25. _________________ performance management and business models should align the suppliers'
incentives with yours
II. Spider web.

Direction: Make a spider web in the following words:

1. Supply Chain Alignment. ( 15 pts. )

2. Drivers of Supply Chain Excellence (15pts.)