Supply Chain Management in Travel Trade Industry

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In a logistics industry processing of the information is a very key component. The reason is it links all other components of the same system. This helps to achieve success in the overall supply chain management. The supply chain can be defined as the complete set of suppliers of goods and services required for a company to operate its business. Travel businesses have always heavily relied on its intermediaries to help in the distribution of products, and maintain a relationship with the travelers. In the recent past, the growth of internet has benefitted the logistics industry as organizations have been able to reduce distribution costs and have gained access to and increased control over their actual and potential customers. A major benefit has been provided to the travel industry as the time frame has been shortened in terms of supplying the products to its end users directly and quickly. However, it has to be remembered that although the information processing industry is emphasized in the logistic industry its over-dependence can prove to be fatal for the overall organization as travel organization is to deliver total tourist experience and these data are often shared over a global distribution network. The travel industry is able to generate accumulate and process vast amounts of information concerning their suppliers and consumers. (Robinson, 105) In the recent past, the supply chain is facing broader and deeper challenges. Traditional supply chain business models have given way to the emergence of new horizontally integrated high-performance on-demand value chain networks. These new supply chain strategies have opened up competitive advantage opportunities for the logistics industry. Supply chains have increasingly moved towards outsourcing and partnerships which have increased the challenges in meeting demand and supply of the overall logistics industry. (“Energize your&nbsp.supply chain network: New competitive advantage from existing investments”.).

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