Assessment of Lean implementation in Hotels’ supply chains

Tortorella, Guilherme Luz; Rosa, Maria Victória Lins Lange; Caiado, Rodrigo; Nascimento, Daniel; Sawhney, Rapinder

doi:10.1590/0103-6513.20190044

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Research Article • Prod. 29 • 2019 • https://doi.org/10.1590/0103-6513.20190044 copy

Assessment of Lean implementation in Hotels’ supply chains

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

Paper aims

This article aims at investigating the implementation level of Lean Supply Chain (LSC) practices in hotels’ supply chains.

Originality

The proposed method allows to characterize LSC implementation in such an unusual context, identifying improvement opportunities and checking for discrepancies in their implementation.

Research method

Six different supply chains of high-quality hotels were analyzed through semi-structured interviews. Interviewees played key roles in their purchasing departments and presented large experience in the hospitality sector.

Main findings

Results were consolidated and for each case attributes were assigned to measure the implementation level of ten practices. Implementation scores were compared to a perceived average importance degree in order to verify convergences and divergences between the desired and actual improvement initiatives.

Implications for theory and practice

The applicability of LSC practices in services still needs further exploration. In the hospitality sector, whose evidence is even scarcer, this study provides a more holistic approach enabling a deeper understanding of the necessary adaptation for a successful implementation.

Keywords
Lean supply chain; Hospitality sector; Lean production

Organizational area	SCM	LSC
Production	Prognostic-based	Actual customer demand-based
Customer Service	Little flexibility	Sensitive to changes and needs
Planning	Random and limited	Detailed and long-term
Process	Batches	Continuous
Quality	Quality warranty through multiple inspections	Quality warranty through continuously supporting processes
Logistics	Cost-based	Value-oriented
Suppliers	Power relationship (“win-loose”)	Collaborative relationship (“win-win”)
Principles and practices	SCM	LSC
Relationship with suppliers	Random and distant	Based upon trust and collaboration
Time for decision-making	Short-term	Long-term
Number of suppliers	Several sources	Few partners
Problem-solving	Limited feedback	Constant feedback and cooperation
Participation in product design	Inexistent	Frequent from the very initial stages
Suppliers assessment and selection	Cost-based	Centered in capacity, value-added and background

Interviewees gender		Interviewees’ educational level		Hotel focus
Male	67%	Complete higher education	83%	Business	83%
Female	33%	Incomplete higher education	17%	Leisure and tourism	17%
Interviewees age		Interviewees’ experience in hospitality sector		Hotel cost category
< 30 years-old	33%	< 10 years	50%	Mid-scale	67%
Between 30 and 40 years-old	50%	> 10 years	50%	Up-scale	33%
> 40 years-old	17%	Hotel’s number of employees		Hotel’s total number of rooms
Hotel quality classification		< 50	50%	< 100	17%
Four-star	83%	Between 50 and 100	17%	Between 100 and 200	50%
Five-star	17%	> 100	33%	> 200	33%

Attribute	Weight
Not applicable (NA)	-
Not existent (NE)	0.0
Extremely poor application (EPA)	2.5
Poor application (PA)	5.0
Moderate application (MA)	7.5
Full application (FA)	10.0

LSC practices	General comments and observations	Hotels’ supply chains						Practices implementation scores	Practices average degree of importance
LSC practices	General comments and observations	Case₁	Case₂	Case₃	Case₄	Case₅	Case₆	Practices implementation scores	Practices average degree of importance
lsc₁-Collaborative relationship based upon mutual trust and commitment	Suppliers are seen as a strategic part of the vale chain.	FA	FA	FA	FA	EPA	PA	7.92	9.58
lsc₂-Low vertical integration	Evidence of low vertical integration with strong emphasis on core business.	MA	FA	PA	MA	FA	FA	7.92	8.33
lsc₃-Few supply sources	Number of suppliers varied between 15 and 75.	FA	MA	MA	FA	FA	EPA	8.33	6.67
lsc₄-Small-batch and frequent deliveries	Most deliveries are performed in a monthly basis, and weekly deliveries are less common.	PA	PA	PA	PA	FA	PA	3.75	9.17
lsc₅-Kanban with suppliers	Lack of knowledge on the practice, but great interest on its benefits.	NE	NE	NE	NE	NE	NE	0.00	7.50
lsc₆-Selection criteria based upon suppliers’ capacity, value-added and background	Price and quality criteria still prevail over supplier’s background.	MA	PA	PA	FA	EPA	PA	5.00	8.75
lsc₇-Constant communication and information sharing	Besides contact for purchasing orders, communication and information sharing are poorly reinforced.	NE	EPA	EPA	NE	EPA	EPA	3.33	8.75
lsc₈-Suppliers adopt quality techniques	Hotels do not perform systematic quality control and have no visibility of their suppliers’ quality processes.	NE	NE	NE	NE	NE	NE	0.00	7.92
lsc₉-Cooperative problem-solving with constant feedbacks	There is little evidence on cooperative problem-solving. Most cases report a simple substitution of materials without any major structured analysis.	NE	NE	NE	PA	NE	MA	1.67	10.0
lsc₁₀-Common performance indicators with suppliers	The only performance indicator followed-up regards hotel’s customers satisfaction and a random information sharing on products/services provided.	NE	PA	MA	PA	PA	MA	3.75	7.50
Hotels’ supply chains scores		3.25	6.00	5.00	6.75	5.00	5.25

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