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时间:2016-02-05 09:22来源:www.ukassignment.org 作者:留学生作业 点击:

Delivering Value To The Customers 


米高梅国际度假村拥有12个属性在拉斯维加斯和50000年员工劳动力,代表12%,国家最大的收入来源(梅森,2012)。2011年,美高梅度假酒店国际美高梅(MGM)很难逃离宣布破产由于其长期债务(Garrahan, 2009).




In todays fluctuating business environment, the focus on delivering value to the customers at the least possible has increased. Hotel industry, big and as well as small must focus on how to offer best product while maintaining the cost as low. Today's economic environment had affected the business worldwide, including the hotel companies (Brodsky, 2009). The travel and hotel industry accupancy rate is effected by reduced demand from the business sector ,corporate sector and leisure travel because of the global financial crisis and further the expenses on leisure activities such as holidays tend to be one of the first thing that consumers cut off in times of economic adversity.

MGM Resort International, which owns a dozen properties in Las Vegas and 50000 employee workforce ,which represents 12% as the state's biggest source of revenue (Mason, 2012). In 2011, MGM Resort International (MGM) hardly escaped from declaring bankruptcy due to its long-term debt (Garrahan, 2009).

The area which is left out in cost cutting efforts is its logistics and supply chain operation. A well managed SCM system can help the hotel industry to gain competitive advantage .An established logistics and SCM strategies not only enhances the service and quality but also reduces the cost.

Where, Companies like best buy struggle to stay alive, Amazon and Wal-Mart, world's largest two retailers, maintain to grow up and thrive because of their logistics and SCM to reduce cost and offer products and services to the customers at a lower cost(Bonney,2012)

Logistics and SCM are normally used at operational, tactical and strategic level in the hotel, retail, manaufacturing, healthcare, automotive industry .And hotel industry benefit with broad practice of logistics and SCM by delivering a consistently dependable and high quality service at the best costs.

Where, Companies like best buy struggle to stay alive, Amazon and Wal-Mart, world's largest two retailers, maintain to grow up because of their logistics and SCM to reduce cost and offer products and services to the customers at a lower cost (Bonney,2012).


Lambert, Cooper, and Pagh, 1998 defines supply chain management as the combination of main business processes from the end user through the real suppliers that offer product, services and information that add value for customers and other stakeholder.

SCM is a process of working together with customers to develop and apply supply chain strategies which generate value and deliver competitive advantage. Alignment of supply chain operations across the business, sustain and enable the accomplishment of the business aims and strategy.


The Council of Logistics Management (CLM) 1998 defines logistics is that element of the supply chain process that plans, implements and controls the efficient, successful flow and storage of goods, services, and related information from the point-of-beginning to the point of- consumption in order to meet the requirements of the customers .Christopher's 1998 defines logistics as the management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole.



It is the sourcing and purchasing of goods and services for business purpose. Set procurement policies are used in the logistics and SC industry that oversee their choice of suppliers, products and the methods and procedures that are going to be used to communicate with their suppliers. Nowadays in procurement atmosphere, significance has been located on reducing cost during purchasing which leads to the best costs and value to its customers

Some companies like Wal-Mart goes straight to the manufacturer, and they are very strong when they negotiate their price with their suppliers and make sure that no other company is buying the product at a lower price than them. For instance company like TJX are so transparent with regard to their procurement strategy and by interacting to vendors in order to understand their price structure and strategy to reduce cost

For example,Hilton Hotels changed their procurement strategy and it now focuses on spreading its operations through franchisees. This enables the company to bring in revenues in the form of franchisee fee without incurring any additional costs to purchase real estate and construct hotels. Hilton Hotels makes certain they build strong relationships with suppliers for high-quality deals, and then negotiate mark-ups with the distributors that handle warehousing and delivery. Also as part of their strategy to control the whole supply chain process, they are making changes internationally by focusing on integrating their international procurement

Venetian /Palazzo in Las Vegas purchasing is done on a two week alternation using the company's distribution master plan philosophy which includes 1-3 vendors. They request for the best price and promotions to saving on cost with the lower price. In

procurement process Venetian /Palazzo, they try to keep on within a 1 - 5% value as part of their product costs plan.(R. Lindsay, personal communication, June 15, 2012).

The Venetian/Palazzo and Hilton, like many other hotel companies, use procurement software called Stratton Warren in order to manage the entire procurement process through e-commerce. Stratton Warren includes system like financial system and warehouse management to help to

has been integrated with other systems like warehouse management and financial systems to help increase better visibility and control of their procurement process


It is the management of the efficient movement of products from the point of of manufacture to the point consumption or sale. Distribution management consist of activities like as warehouse management, materials management, packaging, stock control, order dealing out, and shipping.


Logistics management is a element of all levels of planning and execution. It is the authority of supply chain functions. Logistics management activities include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management, supply/demand planning, and management of third party logistics services providers. In addition,the logistics management also includes customer service, sourcing and procurement, production planning and scheduling, packaging and assembly.

The Four Queens has a program called vendor compliance program, where they inform vendors how they want the arrival of their product .The incorporation of operations with suppliers has helped hotel properties to accomplish the greatest throughput and highest efficiency, in the least period of time.(W.bach,personal communication,june 13,2012)

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