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:In a supply chain, different organisations enter into contractual

relationships to supply services, products or goods, and the performance of
each organisation depends on that of other organisations in the chain. This
concept of a supply chain is also applicable to the tourism product. Tourism
can be described as an amalgam of different interests, activities, stakeholders
and businesses that are functionally linked together to form a distinct supply
chain.A supply chain is a network of facilities and distribution options that
performs the functions of procurement of materials, transformation of these
materials into intermediate and finished products, and distribution of these
finished productsThe potential benefit of considering not only individual
enterprises but also the tourism value chain becomes evident

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Supply chain management


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Nowadays, the science of logistics and supply chain appears to be very helpful and
applicable,especially in the tourist and recreation sector. Broad knowledge as well as
practicalexperience in this field can bring a lot of support not only in the creation of the
supplychain, its realization and monitoring processes but also in the efficiency analysis or
eventendering procedures. It is beyond any question that the process of forming a supplychain in
the tourist and recreation sector requires advanced and professional knowledgeof both
transportation systems: carriage of goods and passengers.There is no need to emphasize the
fact that, in the view of a very competitive andmodern market of tourism and recreation, high
quality of enders is still a priority.However, there is one more factor that plays an important and
decisive role in this verysector. Strange as it may seem, it is the costs rather than the prices that
determine ourchoices when making important decisions. Therefore, in order to gain a strong
marketposition, maintain it and leave the competition behind, it is crucial to pay close attentionto
the cost analysis in particular links of the supply chain as well as restructuring them. The supply
chain comprises the suppliers of all the goods and services that go into the delivery of tourism
products to consumers. It includes all suppliers of goods and services whether or not they are
directly contracted by tour operators or by their agents (including ground handlers) or suppliers
(including accommodation providers). Tourism supply chains involve many components- not just
accommodation, transport and excursions, but also bars and restaurants, handicrafts, food
production, waste disposal, and the infrastructure that supports tourism in destinations. Supply
chains operate through business-to-business relationships, and supply chainmanagement
delivers sustainability performance improvements alongside financial performance, by working to
improve the business operations of each supplier in the supply chain. Tour operators
haveenormous influence over activities throughout the tourism supply chain, since they direct
and influence the volume of tourism, the tourist destinations and facilities that are used. Tour
operators can use this to help in promoting general improvements in sustainability performance
as part of good commercial practice.

In planning actions for sustainable supply chains, tour operators and The Travel
Foundation should note that there are examples of good practice throughout the direct supply
chain of tour operators as well as in a variety of tourist destinations but these are only
implemented by some companies and many others can learn from them. It will be easiest to
implement sustainability requirements inaccommodation and most difficult in transport, most
visible in excursions and activities while most beneficial to the local economy when this supports
food and craft production. Destination sustainability efforts will require wider stakeholder
partnerships and if only for this reason will be more time consuming to implement.A secure
income stream, with stable contracts and foreseeable contracting conditions including prices is
paramount, both to facilitate the necessary investments by the supplier, and to cement the trust
in the relationship. Projects require time for companies to build knowledge and develop
relationships, and touroperators tend to require a steady and significant volume of operations
with a supplier or destination if they are to make a significant contribution and expect changes in
local operations
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.The market of tourist and recreational services is composed of the following:

G hospitality services;
G catering services;
G tour operating services;
G tourism oriented services;
G recreation oriented services.

Those segments of the market where many different firms, business entities
orincorporated companies operate can easily and successfully adopt the premises oflogistics. As
a matter of fact the science of logistics combines both theoretical andpractical issues. What is
more, all its theories can be easily implemented and confrontedwith reality in order to verify
whether the are efficient and applicable in real life.If we took the hospitality services sector in
consideration, we would find that Strategies thereare quite a few areas where it is advisable or
even necessary to fall back on the science oflogistics. Furthermore, the efficiency and quality of
hospitality services can be improvedthrough effective logistics management of the following:
- hotel management;
- quality management;
- information management;
- marketing.
On the other hand, such an approach and division of hotel activities may seem a
bitlimited. Therefore, if we looked at the hospitality sector from more detailed point of viewwe
could distinguish different processes that take place, such as:
- supply processes;
- service production processes;
- distribution processes;
- storage and warehousing processes;
- information transmission processes.
The areas listed above should be referred to in search for minimalization of costsand finding best
solutions possible in order to gain a strong, competitive and leadingposition in the marketO

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£. To establish a sustainable supply chain policy and management system.

2. To support suppliers in reaching Sustainability Goals, including raising awareness
onsustainability issues amongst suppliers and demonstrating why sustainability
performance isimportant
3. To integrate sustainability criteria into suppliers¶ contracts and preferentially contract
suppliers
£. that meet those criteria.Business benefits from adopting good practices for tourism
supply chain management includeretention of clients, as there they increasingly expect
responsible behaviour even from those not willing to
2. pay for it; increased revenue; reduced costs and improved operational efficiency,
remaining competitive
3. to assess and respond to risks and opportunities in the market; · management of risks
and staying ahead
 A. of legislative requirements; enhanced staff performance, achievement of better
recruitment and staff
5. retention, as satisfied staff are a key asset; protection of the core assets of the business
(environment
6. and culture); and enhanced brand value, reputation and market share, protecting image
and status,
7. particular for companies publicly quoted on stock markets.

A
  ‘= 

£. £.Energy & water supplies

2. 2.Infrastructure, services &
3. 3.resources of destinations
A. A.Furniture & crafts
5. 5.Cultural, social & sports events
6. 6.Excursions & attractions
7. 7.Ground operations*
8. 8.Customers Ground transport
9. 9.Marketing & sales
£ . £ .Tour operating*
££. ££.Accommodation
£2. £2.Catering, food & beverages
£3. £3.Laundry
£A. £A.Food production
£5. £5.Waste recycling & disposal


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 Working with suppliers to integrate sustainability into the supply chain can benefit tour
operators, suppliers, customers and destinations. From a financial standpoint, improved
sustainability can lower costs through greater operating efficiency, reduced waste generation,
and reduced consumption of energy and water. Sustainability practices can also lead to
increased revenue and shareholder value by generating more repeat business and attracting
new business from customers that value good and social performance. A strong positive
reputation as a company that cares about sustainability issues, coupled with improvements to the
quality of the tourism experience provided to clients, can result in increased customer satisfaction
and loyalty, strengthened brand value, enhanced publicity and marketing opportunities, and
better acceptance by local communities in destinations. Good performance and a high-quality,
sustainable product can also help a tour operator reduce the risk of conflict or problems with
suppliers, governments, staff and local communities, and improve its status as a respected
partner in destinations. This may mean enhanced access to key business resources such as
capital, the ability to develop products to meet growing market demand, improved relationships
with governments, and a motivated and loyal staff. The costs and benefits of integrating
sustainability criteria into the supply chain will vary for each company, depending on:

ҏ Purchasing and contracting arrangements with suppliers;

ҏ Availability of alternate suppliers in key destinations;

ҏ Suppliers¶ current levels of sustainability performance and potential for change;

ҏ Barriers to sustainability, such as external factors

ҏ A company¶s main sustainability and operational concerns and

ҏ Resources available to implement and promote sustainability throughout the supply chain

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As itermediaries between tourists and tourism service providers, tour operators bring
together a variety of tourism-related services to form a complete holiday package, which is then
marketed to customers either directly or through travel agents.

Each package generally consists of accommodation (often including some food

provision), transport both to and from the destination, ground transport within the destination, and
events or activities such as excursions and social activities.

Because most of the goods and services included in a holiday package are provided by
a supply chain of subcontracted companies, organizations and agents, tour operators are not
always in direct control of the environmental and social impacts of those products. Yet,
consumers increasingly expect the companies they buy from to ensure that their products
provide not just quality and value-for-money, but also safeguard environmental and social
sustainability.

Companies must take responsibility for ensuring the sustainability of all the inputs that
go into their products. For tour operators, who offer products comprised almost entirely of
contracted goods and services, this means that effectively implementing sustainability policies
requires working closely with suppliers to improve sustainability performance throughout the life
cycle of a holiday package.
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Working with suppliers to integrate sustainability into the supply chain can result in a number of
benefits for tour operators, suppliers, customers and destinations.

From a financial standpoint, improved sustainability can lower costs through increased operating
efficiency and reduced waste generation. Sustainability practices can also lead to increased
revenue and shareholder value by generating more repeat business and attracting new business
from customers who value good environmental and social performance. A strong positive
reputation as a company that cares about sustainability issues, coupled with improvements to the
quality of the tourism experience provided to clients, can result in increased customer satisfaction
and loyalty, strengthened brand value, and enhanced publicity and marketing opportunities.

Good performance and a high quality, sustainable product can also help a tour operator reduce
the risk of conflict or problems with governments, staff and local communities, and improve its
status as a respected partner in destinations. This may mean enhanced access to key business
resources such as capital, the ability to develop products to meet growing market demand,
improved relationships with governments, and a motivated and loyal staff.
 
 

 
  



Based on the experiences of its members in working with their suppliers to improve the
sustainability performance of their supply chains, the Tour Operators¶ Initiative has developed a
methodology for tour operators seeking to integrate economic, environmental and social
sustainability criteria into their choices of service suppliers and their contracts with those
suppliers. The key components of this methodology include:

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For a tour operator, effectively integrating sustainability into its supply chain will require the
establishment of a coherent company policy and accompanying management system that set
clear targets and actions for economic, environmental and social performance. Basing this
system on already existing internal processes will help keep down the costs of implementation
and promote integration within a company¶s overall operations. Key elements of a successful
sustainable supply chain policy include:

- A sustainability action plan for improving the economic, environmental and social sustainability
performance of suppliers and integrating the implementation of the policy into existing company
management systems;
- A baseline assessment of tourism service suppliers, to assess strengths and weaknesses in
their current performance on sustainability, determine priority targets and actions, identify areas
for improvement, and generate a baseline against which to measure progress over time and
review and modify the sustainable supply chain policy and action plan; and
- A system for monitoring and reporting on progress (as measured against the initial baseline), to
ensure that goals have been achieved, identify any potential problems at an early stage, promote
transparency, and share results internally and among external stakeholders.

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Tour operators are well-placed to support suppliers in improving their economic, environmental
and social performance. As tour operators deal directly with potential customers, they understand
their clients¶ growing demands for high quality and sustainability. They also often have access to
technology and information that smaller suppliers may have difficulty obtaining on their own.
Because tour operators deal with a wide range of different suppliers, they can more easily gather
information on a variety of best practices and facilitate the sharing of experiences amongst
suppliers.
There are a number of ways that tour operators can help enable their suppliers to improve their
sustainability performance and meet set sustainability criteria and targets. The appropriate mix of
support measures for each company and supplier will depend on data collected during the
baseline assessment and the approach that the company has chosen to adopt for implementing
its sustainable supply chain strategy. Possible support measures include:

- Raising awareness on sustainability issues amongst suppliers and demonstrating why

sustainability performance is important;
- Providing technical support to suppliers on how to improve their sustainability performance,
particularly in areas that have been identified as priorities; and
- Offering incentives to sustainable suppliers by recognising and rewarding improvements on key
environmental, social and economic issues.

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Fully integrating sustainability issues into a tour operator¶s business practices will require altering
the way purchasing choices are made and suppliers¶ contracts are written. Including
sustainability criteria in suppliers¶ contracts highlights the importance of sustainability issues to
the tour operator¶s core business and ensures that priority issues are addressed with suppliers
from the start. Sustainability criteria can be incorporated into suppliers' contracts to set both
minimum performance standards that all suppliers of a particular type must meet and further
optional criteria that they are encouraged to achieve. Performance against sustainability criteria
will need to be monitored and assessed as part of regular reviews of suppliers and improvements
can be rewarded by preferentially contracting suppliers that meet the sustainability criteria.





  

 Supply chain management is all about creating better relationships. Supply chain exists
in both service and manufacturing organizations, although the complexity of the chain may vary
greatly from industry to industry and firm to firm.
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£.M.Sigala,2 8,http://www.conservation.org/documents/CI_ecotourism_supply_chain_
management downloaded on £/ £/££

2.Anonymouswww.globalreporting.org/guidelines/sectors/tourop.asp downloaded on
£/ £/££

3.Richard Tapper,Tourism Supply Chains-A report from LeedsMet for The Travel
Foundation

A Anonymous. http://www.development.lk/news.php downloaded on 3£/£2/£

5.Anonymous http://www.managementhelp.org downloaded on 3£/£2/£

6.Anonymous http://www.heacademy.co.uk downloaded on 3£/£2/£

7.Anonymoushttp://www.icrtourism.org downloaded on £/ £/££