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Introduction
In the hospitality sector, effective operations management is a critical component that ensures the productivity and sustainability of the business. The efficiency, and service quality of the businesses play a major role to make sure that they follow a good business approach while conducting their operations. The operations strategy model of The Ritz-Carlton, Tokyo includes various operational activities involved in the process such as operations planning and control, sustainable supply chain management model, focus on innovation and efficiency, and operations for sustainability and flexibility (Solomon, 2017). The evaluation mainly focuses on the operational strategies relating to sustainable supply chain management since the sub-functions involved in the process help the business to deliver quality service to the end users i.e. the customers.
The Ritz-Carlton effectively manages its supply chain management process which focuses on “Sustain. Protect. Experience” (The Ritz-Carlton, 2017). The assessment would help the readers to get a better idea about its internal operational aspects that make sure that the guests have an enriching experience in the hotel and also help the business to minimize its carbon footprint. Its sustainable supply chain approach allows the business organization in Tokyo to ensure that it has a favorable impact on the economic, social, and environmental setting (The Ritz-Carlton, 2017).
The operations management model of this luxury hotel chain has been selected so that the core functions that are performed at the operational level can be critically analyzed. The conceptual theories have been used and applied to the practical operational setting of the hotel. Several previous research studies have been referred and recommendations have been designed that would help the hotel business to have a better performance in the competitive market setting (The Ritz-Carlton, 2017).
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Ritz-Carlton Hotel Company
The Ritz-Carlton Hotel operates a web of luxury resorts and hotels in different parts of the world including the U.S., Mexico, Canada, Europe, Asia, Africa, etc. These hotels offer amenities including guest rooms, golf courses, spas, fitness centers, golf courses, etc. It is said to be one of the most functional hotel chains that operate in the current times. The Ritz-Carlton Hotel, Tokyo is the focal point of the essay (The Ritz-Carlton Hotel Company, 2017). Its operational management model has been studied here so that the key strengths and capabilities of the business can be identified. The factors that strengthen the sustainability of its supply chain model have been evaluated which allows the customers to have remarkable travel memories (The Ritz-Carlton Hotel Company, 2017).
Operations Management Theory
Operations management includes different tools and techniques that help a business to have a sustainable and productive existence in an uncertain industrial setting. The supply chain network is the central theory that forms the framework of the analytical study. The theory would help to get a better insight into the daily commitment of the business to meet customer expectations (Pattni, 2006). Services and information between a string of operations that act as the strand of the supply chain, the tools, and techniques that have been used in the process have high relevance.
The centralized sourcing strategic model relating to the supplier selection of the Ritz-Carlton Hotel has been carefully assessed so that the roles of all the participants in the process can be ascertained (Luc, 2017). The operations management model has been used so that the competitive advantage of the business can be analyzed in a simple yet effective manner.
The key tools and techniques that have been used to assess the operations management model of the hotel business in Tokyo are the hotel resources that can be done to of the business performance (Pattni, 2006). The theories have been selected so that they can be used in the practical hotel scenario of Ritz-Carlton Tokyo. They have helped to identify the major problem that the hotel business can work on to strengthen business productivity in a competitive setting.
The supply chain network is critical for the hotel chain since it makes sure that all the resources are used most effectively in the organizational setting. A poor decision or improper use of the supply services can adversely affect the performance of the hotel business in Tokyo. Thus the gap-based model has been used here so that it can help to understand the difference between the actual performance of the prevailing SCM model and the market requirement (Solomon, 2017).
Sustainable Supply Chain Management
According to the research paper “Sustainable Operations: Economic and environmental elements into Consideration (Gimenez, Sierra & Rodon, 2012). The researchers have defined sustainable operational management as the specific set of skills and leverage that allow a business concern to mold its business operations to achieve the most sustainable performance.
As per the research study “Strategic planning for hotel operations:
The main focus of the study is on the leadership approach that is adopted in the planning process. One of the main factors that help the hotel chain to have a robust supply chain model is the use of information systems (Shriver, 1993). It helps the business to have better control over the various participants that operate on the supply side of the business. It helps the hotel chain adopt an innovative model to have better control over its quality of service. The used tool has helped to identify the main areas that can be further enhanced by the hotel chain to improve its performance (Solomon, 2017).
Supply Chain Management Model of Ritz-Carlton, Tokyo
The bundle of offerings that is made by Ritz-Carlton, Tokyo includes both services and products so the supply chain management model of the hotel chain is made up of complex activities and processes. The supply chain process of the hotel starts with commodity analysis. It is nothing but the groundwork relating to the indents, purchase requisition, and orders (InterContinental Hotels Group PLC, 2017).
The examples that highlight this function of the hotel are provisions and groceries, capital equipment, China silver and glass items, cleaning supplies, linens and uniforms, maintenance supplies, etc. The internal customers of the business include the departmental managers and the staff members that perform the specific operations in the business setting.
The major supply chain processes that Ritz-Carlton, Tokyo is involved in comprise of the supplier identification process, supplier evaluation process, supplier management, supplier development and improvement, and ultimate empowering of the purchase manager (InterContinental Hotels Group PLC, 2017).
Supplier Identification process – Several suppliers are involved in the hospitality setting so Ritz-Carlton, Tokyo critically assesses the key suppliers that have a vital impact on the productivity of the business (Sethu, 2007). The major suppliers who are involved in the process are the suppliers of food, beverages, and hotel utilities, suppliers of travel, legal and consultancy functions, suppliers of the latest hardware and software, etc.
While selecting the suppliers, the business selects the firms that have a high reputation in their operational sector. This allows the hotel to offer world-class service to the ultimate customers. Such an approach helps the business to have a steady and secured procurement model (Sethu, 2007).
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Supplier Evaluation Process – The hotel critically assesses the various suppliers that it can use to perform its business functions so that high-quality service can be offered to the hotel customers relating to the food, utility service, ambiance, etc. This approach has helped the business to have a strong presence in the hospitality sector in major parts of the world including Tokyo. Such an evaluation model strengthens its supply chain management model and allows the involved suppliers to deliver unforgettable travel experiences to the users (The Ritz-Carlton, 2017).
Supplier management process – Once the hotel business selects the key suppliers, a uniform and smooth process is followed so that the purchase function can be carried out without any kind of bottlenecks. All the key departments including the finance department, and HR department are involved in the process so that the suppliers can customize the service and inventories as per the specific needs of the hotel chain in Tokyo (Sethu, 2007).
Supplier Development and Improvements – In the ever-changing hospitality business setting, the Ritz-Carlton hotel in Tokyo has continued to have a sustainable existence because it keeps on modifying and strengthening its supply chain network. Currently, customers have a large number of options, the hotel chain focuses on the key requirements of the customers so that they can derive delight by choosing its service over that of its industry rivals (Sethu, 2007). This approach ultimately contributes to its efficiency and cost-effectiveness.
Empowerment of the hotel chain – The purchasing team of Ritz-Carlton Hotel, Tokyo feels empowered since it has complete control over the supply side of the business operations. The professional management process of supply chain management helps the business to customize its offerings as per the unique needs and demands of the end customer. Such an operational approach allows it to have a positive footprint in the hospitality sector (The Ritz-Carlton, 2017).
The business believes in ethical operations so that the best principles and practices can be adapted to have a robust and effective supply chain network. Delivering the most professional service to the customers involves the suppliers in the process so that they can understand the core requirements of the hotel chain and its customers (The Ritz-Carlton, 2017).
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Gap-based model
The gap-based model has been used to assess the operational management process of the Ritz-Carlton Hotel in Tokyo so that the prevailing gaps and bottlenecks in the supply chain management process can be strengthened. This tool has been used to identify two critical problems that the hotel business work on to strengthen its current supply chain management model (Pattni, 2006). Even though the hotel chain takes into account the needs of the customers and the functional aspects of its suppliers, the gap-based model has helped to identify two critical issues (Luc, 2017).
Better environmental management
The current supply chain management model of Ritz-Carlton, Tokyo takes into account the environmental management aspect but it needs to further strengthen its activities so that the environment can be favorably affected by the operations of the hotel chain.
The current performance of the business is sustainable but the environmental state is critical so the business must simplify its operations and functions so that the suppliers can act responsibly in the business setting (Saraph, Benson & Schroeder, 1989). Hence there is a need for the business to maintain or improve the service quality and remove the gaps relating to the negative or neutral footprints in the natural setting. It can integrate the information system model in the process so that its carbon footprints can be minimized and its ultimate service can create value for the community and the service users (Saraph, Benson & Schroeder, 1989).
Involvement of Technology in a service setting
The hospitality industry is undergoing a rapid change in the operational setting due to the evolving technological scenario. To strengthen the business performance of the luxury hotel, it must keep on upgrading the technological model so that the supply chain network can be further simplified in the process. Such a process would not just help the business to strengthen its supply chain management but also its ultimate service quality including dining and food.
The use of advanced technological models would allow the concern to centralize its operations so that all the operations could be conducted on a single platform. Thus the technology would help to enhance customer satisfaction and overall business sustainability (The Ritz-Carlton Leadership Center, 2017).
The better technological model would allow the hotel chain to be self-sufficient in nature and function productively and sustainably. It can introduce a unique form of technology that would simplify its professional relationship with its supply members as well as the customers. Example – A mobile app would strengthen the engagement between the business suppliers and the hotel management team (The Ritz-Carlton Leadership Center, 2017).
Conclusion
The operations management model of Ritz-Carlton, Tokyo has been assessed here. The primary focus is on its supply chain network because it is a critical element that influences the overall functional performance of a business undertaking. All the services or products that are made available to the customers come into existence due to different kinds of operations. To conduct operations, the availability of supplies is a must, thus the focus here is on the supply side of the hotel chain.
The gap-based model has been used to identify the key areas that the hotel chain business can further strengthen to boost its supply chain model. The recommendations have been highlighted below so that the business can bring about the necessary changes in its operations and processes to have a better grip on its performance and sustainability. The use of the operations management concept and tools helps to assess its performance in this organization.
The recommendations have been specifically for Ritz-Carlton, Tokyo so that it can simplify its business operations and bring together the suppliers and the customers under the same roof. The strategic supply chain network of the hotel chain would allow it to use it as its competitive advantage.
Recommendations
The recommendations that have been highlighted here focus on the supply chain management model of Ritz-Carlton, Tokyo. Currently, the business is a major player in the global hospitality sector. But the recommendations would help the business undertaking to further strengthen its supply chain network so that smooth operations between the key suppliers and the hotel would be possible and the satisfaction level of the customers could be increased in the process.
Sustainable hotel practices – The Ritz-Carlton, Tokyo must inculcate sustainable and greener approaches while conducting its business operations. It must focus on the major environmental domains including water, energy, wastes, logistics model, noise and air quality, and landscape integration. The hotel must strengthen its decision-making process and it must regularly evaluate the performance of its suppliers to ensure that they follow ethical and environmentally sustainable operations while performing the supply function. It would help the business to improve its relationship with the supply participants and help it to have better control over the operation management process.
The regular upgrading of the environmentally friendly approach would strengthen the business performance in the Asian market setting. This approach would motivate the business to “Reduce, Reuse and Recycle” the resources which would minimize its external dependence.
Innovative mobile app – Currently, Ritz-Carlton, Tokyo has a mobile app that helps the business to simplify the poolside ordering process, room services, and other service requests. But the business needs to integrate innovative technology into its current supply chain networking model so that the procurement operations with the supply chain participants can be conducted smoothly. The business must introduce a new application that would specifically focus on its operations management process, especially supply chain management.
The recommendations that have been made for Ritz-Carlton, Tokyo would allow the business to simplify the supply process and thus it could efficiently meet the specific needs and demands of its target audience in Tokyo.
References
Gimenez, C., Sierra, V. and Rodon, J., 2012. Sustainable operations: Their impact on the triple bottom line. International Journal of Production Economics, 140(1), pp.149-159.
InterContinental Hotels Group PLC. 2017. Suppliers. [online] Available at: https://www.ihgplc.com/business/suppliers [Accessed 26 Dec. 2017].
Luc, J., 2017. Best Environmental Practices for the Hotel Industry.
Pattni, D.J., 2006. Strategic sourcing for a competitive advantage in the hotel industry.
Shriver, S.J., 1993. Strategic planning for hotel operations: The Ritz-Carlton Hotel Company (Part I). Quality Management in Healthcare, 1(4), pp.43-50.
Sethu, H.S., 2007. Supply Chain Management in Hospitality Industry-An Overview. JOHAR, 2(2), p.33.
Saraph, J.V., Benson, P.G. and Schroeder, R.G., 1989. An instrument for measuring the critical factors of quality management. Decision Sciences, 20(4), pp.810-829.
Solomon, M. 2017. Ritz-Carlton’s Big Announcement And The Luxury-Mobile Paradox. [online] Forbes. Available at: https://www.forbes.com/sites/micahsolomon/2014/08/18/ritzapp/#31bd4129375e [Accessed 26 Dec. 2017].
The Ritz-Carlton. 2017. Luxury Hotels & Resorts | The Ritz-Carlton. [online] Available at: http://www.ritzcarlton.com/en/community-footprints/our-commitment/environment [Accessed 26 Dec. 2017].
The Ritz-Carlton Hotel Company, L. 2017. The Ritz-Carlton Hotel Company, L.L.C.: Private Company Information – Bloomberg. [online] Bloomberg.com. Available at: https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=920234 [Accessed 26 Dec. 2017].
The Ritz-Carlton Leadership Center. 2017. Dear Ritz-Carlton: Does Technology Enhance Customer Service? [online] Available at: http://ritzcarltonleadershipcenter.com/2015/02/dear-ritz-carlton-technology-enhance-customer-service/ [Accessed 26 Dec. 2017].
