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How Marriott's Supply Chain Supports Business Strategy



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Marriott's Supply Chain

Available Opportunities for Courtyard to Improve Supply Chain

The courtyard has numerous expansion opportunities, especially through its supply chain in regions like Europe. Notably, Europe is the largest lodging marketing in the world. It has a minimum of 30 percent of branded supply chains and it gives a chance of noteworthy expansion for shareholders to cuddle the benefits of dimension and level, which is a global brand.

This means that the Courtyard can simply work on that advantage and ensure it expands making use of the opportunity (Michael, Ruth, and Shane, 2011). Even though there are numerous branded supplies in Europe, they only signify 30 percent of the required supply of lodgings, which shows that there is still a massive opportunity for famous hotels like Courtyard by Marriott.

Marriott Hotels are among the best companies in the world in terms of offering hospitality and comfort. They are also among the greatest companies in the world that have embraced innovation and creative means of meeting their client’s requirements (Anil, Fevzi, Khaldoon, and Joon-Wuk Kwun, 2011).

Another minor opportunity is the fact that numerous customers need their services. It means that the hotel will not struggle advertising for long or using other means of attracting customers. This will help the company save a lot, especially in terms of advertisement, which is somehow costly.

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Means of Integrating Logics into Supply Chain of Courtyard

There are several ways through which the supply chain of the Courtyard can incorporate logic as a means of delivering products and services effectively and efficiently. First, the Courtyard is smart in its operation.

Courtyard discerns business travel and displays it. The supply chain can simply make use of the company’s contentedly productive rooms, versatile public regions, as well as food and beverage presentations that excellently match both visitors’ requirements and the professionalism of a worldwide hotel (Vickie, Won, and George, 2008). The second means is achieved through the process of energizing the supply procedure. A stay at the Courtyard offers visitors chances to guarantee time is never wasted. Hotel alternatives enable visitors to be more creative in their rooms or other domains.

This allows the guests to manage everything in their rooms. It implies that they can take advantage of all of the chances that travel presents. Another significant way is the provision of choices. Courtyard assists to refill visitors’ energy and gives them consent to monitor their jobs and businesses. This is done through reviving, validating public regions, which involves instinctive intention and unforeseen excellence in conjunction with supportive and attentive service. It is a good indication that visitors can simply achieve their objectives and flourish during their stay (Vickie, Won, and George, 2008). These are proper implications that logics are integrated by the Courtyard to enhance the process of supply of goods and services within the hotel.

Advancement of the Company’s Agility to Move Goods and Services

The company’s liveliness and nimbleness are extremely significant in enhancing the process of supplying goods and services (Anil, Fevzi, Khaldoon, and Joon-Wuk Kwun, 2011). A good example is Сourtyard, which is extremely lively when it comes to innovation and creativeness. Perhaps, this explains why it is ranked high in the world in terms of welcoming and serving guests. It also provides the best dishes, which make people love it.

The company is presented with several opportunities in the European markets because of its agility in terms of the supply chain of incredible rooms and dishes to customers. The employees at the Courtyard are professionally trained personnel, and they understand the means of handling customers and facilitate quality services at their best.

The company also has agility in terms of supply because of its innovative nature and creativeness. The furniture and electronics presented in the hotel, especially the lodgings, are remarkably impressive. The management team also contains professional leaders who can take the company to higher levels. All these factors make the company lively in terms of operations and customer satisfaction.

Processes to Increase Value for the Customer

The segmentation process has grouped customers based on product, trade channel, or industry. The approach then takes up the one-size-fits-all approach in serving the customers. This approach is also extended to the averaging of costs and productivity across the segments. According to a supply chain manager, most companies do not completely comprehend the value of customers in the services and products they offer.

Using the segmentation approach gives a company an upper hand as it helps to develop a service strategy according to the specific customer needs. Traditionally, the segmentation criterion is classified by interviews, industry researches, and surveys. In recent times, organizations are opting for advanced technical analysis; for example, the use of cluster and co-joint analysis to gauge and predict the marginal profitability and measure consumer trade-offs. Other researchers perceive that criteria like technical support drive the segmentation approach. If to refer to the classic theory, this needs-based segmentation may produce some odd couples. Research has also established that there are two criteria of evaluation, which embody the service value for particular segments.

This allows the company to tailor its services according to particular segments and combine them to offer a complete and satisfactory service to its clients. The main objective of adapting the process of variation and segmentation is to capitalize on profitability. Without a doubt, consumer’s preferences and needs do not solely influence the process of supply chain management. The packages that the company offers have to turn a profit.

Many companies lack the proper understanding of their customer requirements, therefore, they cannot measure its likely profitability. "We don't know which customers are most profitable to serve, which will generate the highest long-term profitability, or which we are most likely to retain," confessed a leading industrial manufacturer. The implementation of supply chain management is vital in the making of the service packages as it helps to increase profitability through volume and price.

Impacts of Supply Chain Management on Organizational Functions

The most essential feature of establishments that can apply the approach of SMC is their ability to embrace new ways of doing things. Service providers ought to have exceptional experience in organizing the supply chain by employing a plausible tactic to apply the organizational change. Service providers have to adjust their solutions of SCM software platforms to employ the implementation of the scheme into the organizational structure of a firm.

Financial Implications of Improving Supply Chain Management

There are a few benefits that result from the implementation of supply chain management as a company strategy. First, there is the aspect of gainful growth. Supply chain management plays a pivotal role in its development by creating an avenue for what is commonly referred to as "perfect orders”. According to Kearney's study, dysfunctions in the supply chain can lead to wastage of about 25 % of a company's operating costs.

Secondly, working capital reductions are another benefit that the company will get due to the implementation of SCM. This raises record turns, dealing with receivables and payables, minimizing periods of supply in the record, and elevating the cash-to-cash cycle impacted by supply chain implementation. The other benefit of using SCM is fixed capital efficiency. This is network optimization. For instance, it involves ensuring that the organization has a good number of warehouses for storage or outsourcing functions where it implies more sense economically. The most outlined benefits that are linked to SCM are centered at reduced costs in the management of inventory systems and storage facilities.

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Best Practices

All companies always aim at reducing the inventory; therefore, implementing the SCM strategy successfully will achieve an assurance that all the products and services are available when needed. Having a company-owned inventory is the best practice that would support the SCM. Poor preparation and forecasting can lead to imbalanced inventories that are not linked to the company’s goals and targets. The best performing companies place a great emphasis on demand, planning, and forecasting as an added means of guarantying unsurpassed inventory levels.

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