Demand management is the supply chain management process that balances the guests' wants and needs with the capacity of the supply chain. Management can match supply with demand and have few disruptions if the appropriate process is already in place. The process is not limited to forecasting, but also includes matching supply and demand and increasing flexibility. An effective demand management system uses any available data to reduce uncertainty and provide efficient flow throughout the supply chain. Marketing requirements and production plans should be coordinated on a corporate level, so that multiple vendors are not delivering the same products for different prices to each hotel location. Instead, cost savings can be found in consolidation of orders.
Supplier relationship management is the process that defines how a hotel interacts with its suppliers. As the name suggests, this is a mirror image of guest relationship management, because a hotel needs to foster relationships with its suppliers too. As in the case of guest relationship management, a hotel will forge close relationships with a small subset of its suppliers, and manage arm-length relationships with others. A contract is negotiated with each
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