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A REPORT ON RELEVANT ASPECTS OF SUPPLY CHAIN MANAGEMENT ON A PROPOSED RESTAURANT AT NOSTOVIA AIRPORT - Essay Example

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Basic underlying concepts guide the practice of supply chain management, which has not changed much over the centuries. Supply chain is the alignment of firms that bring products or services to market. It consists of all stages involved in fulfilling either direct or indirect customer requests (Hugos 2006, p…
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A REPORT ON RELEVANT ASPECTS OF SUPPLY CHAIN MANAGEMENT ON A PROPOSED RESTAURANT AT NOSTOVIA AIRPORT
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3). Hence, supply chain management is the strategic, systemic coordination of the traditional business functions alongside the tactics across these business functions for the purposes of improving the long-term performance of the individual companies as well as the supply chain as a whole (Hugos 2006, p. 3). Supply chain involves the networks of companies working together and coordinating their actions in order to deliver a product to a market. It acknowledges and applies traditional logistics and includes activities such as new product development, marketing, finance, and customer service.

Supply chain management views the supply chain in an organisation as a single entity, and brings the system approach in managing the diverse activities needed to coordinate the flow of services and products in order to serve the customers (Hugos 2006, p. 4). The proposed restaurant needs to structure a plan. This refers to all the operations needed in planning and organising the operations. Three operations in this category are demand forecasting, product pricing, and inventory management. As the proposed restaurant needs planning, it also needs sourcing.

Source includes the necessary activities in acquiring the inputs to create products or services. Two operations are involved here, particularly (1) procurement and (2) operation, credit, and collection. Procurement is the acquisition of materials and services, while operation, credit, and collection can be literally thought of as the acquisition of cash (Hugos 2006, p. 45). "Making" as a category includes the operations required in developing and building the products and services provided by a supply chain.

Operations in this category involve product design, production management, and facility of management (Hugos 2006, p. 45). On the other hand, "Delivering" as a supply chain category encompasses the activities that include receiving customer orders and delivering products to customers. The operations that constitute the core connections between companies in a supply chain are management, product delivery, and return processing (Hugos 2006, p. 45). The illustration below best describes the coordination among Planning, Sourcing, Making, and Delivering (Hugos 2006, p. 45), which will be applied to the proposed restaurant at the New Nostovia Airport:Supplier Strategy Supplier strategy is one aspect of the establishment of the new restaurant business that needs immediate attention.

This involves decisions on how suppliers are selected and how relationships with them are developed (Galloway, et al. 2000, p. 46). It is also concerned with how the operation monitors suppliers' performance as well as improvement of these performances. Recommendations in Respect of Perishable Foodstuffs With Short Shelf Life A guaranteed supply of fresh high quality food is crucial to maintain a chain's reputation in the restaurant business (Galloway, et al. 2000, p. 46). The freshness and quality of perishable foodstuffs with short shelf life is affected by the manner they were handled during the harvests,

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