BSHM 402

SUPPLY CHAIN

FRAMEWORKS
SHANGRI LA BORACAY
SHANGRI LA BORACAY

The use of Porter's Value Chain Model in

Shangri-La Boracay's supply chain would
involve analyzing and identifying key
activities that create value for the resort and
its guests. The model, developed by Michael
Porter in 1985, focuses on identifying primary
within an organization's value chain.
 A. THE SUPPLY CHAIN
FRAMEWORK THAT YOUR CHOSEN
ESTABLISHMENT HAS EMPLOYED
IN ITS SUPPLY CHAIN.

A
Inbound Logistics: Shangri-La Boracay's suppl ychain would involve the procurement of
various goods and services required for the resort's operations, including food and
beverage, linens, toiletries, equipment, and other materials.

B
Operations: This activity involves the core operations of the resort, such as
housekeeping, food and beverage preparation, front desk services, guest services, and
other activities directly related to providing a memorable guest experience.

C Outbound Logistics: Once the guests have enjoyed their stay, this activity focuses on
the efficient management of guest check-out, billing, transportation services, and
ensuring that guests leave satisfied.

D Marketing and Sales: Shangri-La Boracay's marketing and sales activities involve
promoting the resort, attracting guests, managingreservations, and ensuringhigh
occupancy rates through effective advertising, sales strategies, and customer
relationship management.

E Service: This activity involves providing exceptional customer service during the
guests' stay, including personalized assistance, resolving complaints, and ensuring
overall guest satisfaction.

F Procurement: Shangri-La Boracay's procurement function focuses on selecting and

managing suppliers, negotiating contracts, ensuring quality standards, and optimizing
costs for goods and services required by the resort.
G Human Resource Management: Managing the resort's workforce, including recruitment,
training, performance evaluation, and employee engagement, is crucial to ensure skilled
and motivated staff members who can deliver high-quality services.

H
Technology Development: This activity includes the development and implementation
of technology solutions that enhance operational efficiency, such as property
management systems, guest relationship management software, and other
technological innovations to improve overall guest experience.

I
Infrastructure: Shangri-La Boracay's infrastructure includes physical facilities such as
buildings, equipment, and systems that support the resort's operations, including
accommodation, dining outlets, recreational areas, and other amenities.
 B. ADVANTAGES AND
DISADVANTAGES OF SUPPLY CHAIN
FRAMEWORK ON YOUR CHOSEN
ESTABLISHMENT’S SUPPLY CHAIN.

 01 02 03 04

COMPETITIVE ENHANCED SUPPLIER

COST REDUCTION ADVANTAGE EFFICIENCY RELATIONSHIPS
By identifying and analyzing Implementing the Value The Value Chain Model Through the Value Chain
each activity in the value Chain Model enables allows Shangri-La Boracay Model, Shangri-La Boracay
chain, Shangri-La Boracay Shangri-La Boracay to to examine the flow of can assess the performance
can pinpoint areas where identify its unique strengths activities and resources and value contributed by its
costs can be reduced. This and capabilities. By from procurement to suppliers. This analysis can
delivery of services. By
could involve streamlining leveraging these strengths, help in developing stronger
optimizing these activities,
processes, eliminating waste, such as exceptional guest relationships with key
the resort can improve
and optimizing resource experiences or sustainable operational efficiency, suppliers, ensuring reliable
allocation. The focus on cost practices, the resort can reduce bottlenecks, and and timely delivery of goods
reduction can enhance the differentiate itself from enhance overall and services. Improved
resort's competitiveness and competitors and gain a productivity. This can lead supplier relationships can
profitability. competitive advantage in the to better service delivery lead to better negotiation
market. and customer satisfaction. power, favorable terms, and
reduced supply chain risks.

ADVANTAGES
 01 02 03 04

LIMITED RESISTANCE DATA AVAILABILITY

COMPLEXITY SCOPE TO CHANGE AND ACCURACY
The implementation of Porter's Value Chain Model 1.Implementing changes Employing Porter's Value
Porter's Value Chain Model primarily focuses on internal based on the Value Chain Chain Model relies on
can be complex, especially in activities and may overlook Model may face resistance accurate and reliable data.
large organizations like external factors such as from employees and other
Shangri-La Boracay may face
Shangri-La Boracay. The stakeholders who are
market trends, industry comfortable with existing challenges in obtaining
model involves analyzing
multiple activities, processes, dynamics ,or processes. Overcoming comprehensive and up-to-
and interdependencies macroeconomic influences. this resistance and date data for analysis.
within the value chain. This While the model provides effectively implementing Insufficient or inaccurate
complexity may require valuable insights into internal the proposed changes data can lead to flawed
significant time, effort, and operations, it may not fully requires strong leadership,
resources to gather data, effective communication, conclusions and ineffective
capture external factors that decision-making,
conduct analysis, and and comprehensive
can impact the supply change management undermining the potential
implement necessary
changes. chain's effectiveness and strategies. benefits of the model.
efficiency.

DISADVANTAGES
 C. RECOMMENDED PRACTICES
IN IMPROVING SUPPLY CHAIN
MANAGEMENT OF YOUR CHOSEN
ESTABLISHMENT.

Implement a robust demand

forecasting system to accurately
predict customer demands and
optimize inventory levels. Utilize
historical data, market trends,
and guest feedback to improve
forecasting accuracy.

DEMAND
FORECASTING
Develop strong relationships with
suppliers, fostering open
communication and collaboration.
Engage in joint planning and
Regularly assess supplier
sharing of information to ensure a
performance based on quality,
reliable supply of goods and services
reliability, responsiveness, and cost-
while reducing lead times and costs.
effectiveness. Establish criteria for
supplier evaluation and periodically
SUPPLIER review supplier contracts to optimize Optimize transportation routes, modes,
COLLABORATION the supply chain. and carriers to minimize costs and
enhance delivery efficiency. Consolidate
SUPPLIER EVALUATION shipments, leverage volume discounts,
AND SELECTION and explore environmentally friendly
transportation options to reduce the
carbon footprint.

TRANSPORTATION
OPTIMIZATION

Define key performance indicators (KPIs)
to track the performance of the supply
chain. Measure metrics such as on-time
delivery, order accuracy, inventory
turnover, and cost savings. Regularly
review KPIs and take corrective actions
to address any gaps.
PERFORMANCE
MEASUREMENT
Establish a Supplier Code of Conduct that
outlines expectations related to ethical
practices, sustainability, and social
responsibility. Encourage suppliers to
adhere to these principles and conduct
regular audits to ensure compliance.
Implement a culture of continuous
improvement by regularly evaluating SUPPLIER CODE OF
and refining supply chain processes.
Encourage employee feedback and
CONDUCT
implement their suggestions for
enhancing efficiency and reducing
waste.
Identify potential risks and develop
contingency plans to mitigate CONTINUOUS
disruptions in the supply chain. Establish IMPROVEMENT
alternative sourcing strategies, diversify
suppliers, and assess the impact of
external factors like natural disasters or
political instability.
RISK MANAGEMENT
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LISTENING!