TRƯỜNG ĐẠI HỌC PHAN THIẾT ---------***--------- THE APPLICATION OF SUSTAINABLE SUPPLY CHAIN MANAGEMENT IN TOURISM ENTERPRISES IN NHA TRANG CITY Member of the topic group: - Nguyễn Thị Ngọc Nữ - Trần Bình Thuận - Tạ Văn Khánh - Trần Nguyễn Trí Lâm - Trần Thị Thiết Trinh Phan Thiết, tháng 09 năm 2017 TABLE OF CONTENTS LIST OF FIGURES LIST OF TABLES LIST OF ABBREVIATION INTRODUCTION CHAPTER 1. OVERVIEW OF SUSTAINABLE SUPPLY CHAIN MANAGEMENT IN TOURISM. Definition of sustainable supply chain management. Contents of tourism sustainable supply chain management.
Supply chain assessment. External environment review. Risks and opportunities evaluation. Supply chain management responsive programs.
Sustainability practices engagement. The advantages and disadvantages of applying sustainable supply chain management in tourism. The needs in applying sustainable supply chain management in Nha Trang tourism. THE REALITY OF THE APPLICATION OF SUSTAINABLE SUPPLY CHAIN MANAGEMENT IN TOURISM FROM 2010 – 2016.
Overview of tourism industry in Nha Trang City. The number of tourists. Average guest stay. The revenue of the whole industry.
The application of sustainable supply chain management in tourism in Nha Trang city. Supply chain assessment. External environment review. Risks and opportunities evaluation.
Supply chain management responsive programs. Sustainability practices engagement. ORIENTED DEVELOPMENT AND RECOMMENDATIONS IN IMPROVING SUSTAINABLE SUPPLY CHAIN MANAGEMENT IN TOURISM INDUSTRY IN NHA TRANG CITY. Opportunities and challenges in applying sustainable supply chain management in tourism in Nha Trang City.
Targets and orientation of Nha Trang city in developing sustainable tourism to 2020. Recommendations for developing sustainable supply chain management in tourism in Nha Trang city. Recommendations for the city authority. Recommendations for tourist companies.
68 REFERENCES ANNEXES LIST OF FIGURES Figure Name Page Figure 1.1 Primary and secondary supply chain networks 8 Figure 1.2 Analysis of scenario drivers 9 Figure 1.3 Scope of sustainable supply chain management 12 implementation Figure 1.4 Kaplan & Norton Balanced Scorecard 17 Figure 1.5 The Sustainable Supply Chain Scorecard Perspectives 18 Figure 1.6 Sustainable Supply Chain Scorecard – relations of the 19 perspectives LIST OF TABLES Table Name Page Table 1.1 Business strategy levels and types 7 Table 1.2 An example of threat-opportunity profile 11 Table 2.1 Number of tourist arrivals to Nha Trang from 2010-2016 29 Table 2.2 Total guest stay in Nha Trang from 2010 to 2016 31 Table 2.3 Total revenues from tourism of Nha Trang city from 2010 31 to 2016 Table 2.4 Awareness of Nha Trang’s tourism businesses about 34 sustainable supply chain management Table 2.5 Priority of Nha Trang’s tourism businesses for price 34 competition strategy Table 2.6 Evaluation of Nha Trang’s tourism businesses on risk 35 management issue Table 2.7 The application of risk management of Nha Trang’s 36 tourism businesses in practice Table 2.8 Reality of applying strengths and weaknesses evaluation 38 procedures of Nha Trang’s tourism businesses Table 2.9 Evaluation of Nha Trang’s tourism businesses on the cost 40 of applying sustainability practices Table 2.10 Reality of environmental and social impact assessments of 41 Nha Trang’s tourism businesses Table 2.11 Evaluation of Nha Trang’s tourism businesses on engaging 43 sustainability Table 2.12 Evaluation of tourists on the diversity of ecological tours 44 Table 2.13 Evaluation of tourists on the diversity of tours visiting 45 religious sites Table 2.14 Evaluation of tourists on the diversity of tours visiting 46 historic heritages Table 2.15 Evaluation of tourists on the diversity of tours visiting and 46 exploring community/traditional villages, traditional cultures and customs Table 2.16 Reality of applying certification standard system of Nha 47 Trang’s tourism businesses Table 2.17 Reality of tourism businesses’ activities in relations with 48 supplier Table 2.18 Opinions of Nha Trang’s tourism businesses about 48 cooperation with suppliers Table 2.19 Opinions of Nha Trang’s tourism businesses about 49 cooperation with suppliers Table 2.20 Reality of Nha Trang’s tourism businesses activities 50 towards human development Table 2.21 Evaluation of tourists on the cooperation among transport 52 companies, restaurants, hotels and tour operators to deliver conveniences to tourists Table 2.22 Evaluation of tourists on the promotion/ advertising/ 53 information provided on the internet for traveling in Nha Trang city Tabe 2.23 Evaluation of tourists on the density of hotels/motels 54 distributed in Nha Trang Table 2.24 Evaluation of tourists on the quality of hotel rooms and 55 other facilities LIST OF ABBREVIATIONS No. Abbreviations Content 1 ASEAN Association of Southeast Asian Nations 2 GDP Gross Domestic Product 3 ISO Internation Organization for Standardization 4 SAI Social Accountability International 5 IUCN International Union for Conservation of Nature and Natural Resources 6 PCI Provincial Competitiveness Index 7 VND Viet Nam Dong 8 LCA Life-cycle Assessment 9 AEC Asian Economic Community 1 INTRODUCTION 1. Necessity of the research Tourism has long been an important factor for the development of many countries all over the world. Some countries consider tourism as the main income for the country while some would deem this industry as a tool for payment balance or the key industry of the whole economy.
For Viet Nam, it is a crucial factor for the economy. However, despite our potential not only in natural resources but also in our glorious history and breadth of culture, Viet Nam has not taken remarkable consideration into this promising field. Doing business in tourism, it requires a lot of preparation from different stages not only from transport, accommodation or excursions but also tour designs, bars and restaurants, waste disposal, infrastructure and human power, etc. There is no escaping the fact that tourist companies in Viet Nam are still working individually.
There have not been many connections between them. This creates many obstacles for them to deliver the best service quality to tourists such as lag in communication between transportation agents and tours operators, price variations in tours, etc. Moreover, environmental issue is also a noticeable problem for tourism businesses to consider. Environment degradation will directly threaten our lives and also the future generation.
These common problems forces companies to pursue their links between each other in order to avoid wastes, better communication and leads to a brand new resolution, sustainable supply chain management in tourism. Tourism, like all other supply chains, operates through business-to-business relationship, and supply chain management can be applied to deliver sustainability performance improvements alongside financial performance, by working to improve the business operations of each supplier in the supply chain. Many countries in the world have adopted this field of management and it has brought positive outcome so far. Seizing this emerging trend, Vietnamese tourism enterprises have shaken their hands to create a closed-loop supply chain and create their competitive advantages.
Nonetheless, in practice, many companies have had to bitten the bullet due to their lack of management skills in tourism supply chain, especially sustainable supply chain. To adopt this management strategy successfully, they will have to place more 2 emphasis on not only social, environmental or economic aspects of the business but also the collaboration relation or the network with other businesses in the chain. The benefits of applying sustainable supply chain management are remarkable. It will help upgrade service quality to meet versatile customers demand, encourage provincial economy as well as preserve and embellish natural resources for a sustainable tourism of the country.
Nha Trang city is one of the most famous tourist attraction in the world in general and Viet Nam in particular. Thanks to its possession of many beautiful natural scenery and beaches as well as fascinating heritages through the transformation of history, Nha Trang are becoming more popular and attracting tourists from all over the world. However, together with the advancement of tourism, shortcomings and problems unquestionably appear. In practice, many companies working in tourism industry are still taking too much care of the short-term profit without consideration about the long-term vision for a continual future of tourism.
This leads to the existence of an unplanned development and may cause harm to the environment, the society and also the economy in the future. Therefore, to create a bright future for our economy and evoke the potential of this beautiful beach city, sustainable tourism is an indispensable resolution at the present. With the hope to make a little contribution to the revolution of Viet Nam tourism, especially Nha Trang city, I decide to choose the topic for my graduation thesis as “The application of sustainable supply chain management in tourism enterprises in Nha Trang city”. Through this work, I would like to give a new approach to achieve sustainable tourism as well as the improvement in the operation of tourism companies in Nha Trang city.
Overview of the research Although studies of sustainable supply chain management are not rare, the examination of hospitality supply chains is burgeoning. While the hospitality supply chain was discussed in a broader framework of tourism supply chain management by Zhang et al. (2009) and Huang et al. (2012), the conceptual framework provided by Xu and Gursoy (2015) is among the first to discuss the hospitality supply chain 3 management systematically.
This study utilizes the conceptual framework developed by Xu and Gursoy (2015). Xu and Gursoy (2015) define a hospitality supply chain (HSC) “as a network of hospitality organizations engaged in different activities including the supply of various components of hospitality products and/or services such as raw food materials, equipment and furniture from various suppliers; distribution and marketing of the final hospitality products and/or services to the customers for a specific hospitality business such as a hotel or a restaurant.” Hospitality supply chain delivers both products and services from initial suppliers to end users with a value incremental process (Kothari et al. It incorporates the characteristic of both manufacturing supply chain and service supply chain. A higher and more innovative level of applying supply chain management is engaging sustainability into the chain.
Sustainable supply chain management (SSCM) is the integration of economic, environmental and social dimensions, sustainably and ethically, across the supply chain. This is carried out through the integration of key features, i. concepts, process and practices, extended across industries and business activities while collaborating with partners. As the concept of sustainable supply chain management has been gaining attention across academia and industry, the focus of understanding ‘why’ it is necessary is now shifting towards ‘how’ the two fields of ‘sustainability’ and supply chain management merge (Gunasekaran et al., 2015; Luzzini et al.
Scientific evidence is stronger than ever that the planet and people are under the greatest levels of stress ever experienced regarding climate change, environmental degradation, poverty, energy issues and resources scarcity (IPCC et al. Business as usual, in terms of the old model of economic growth and consumption, is not sustainable. In terms of corporate social responsibility and ethical business, it is incumbent on companies to take greater account for their impacts not only on its stakeholders but society and the environment as a whole. This approach agrees with Hall, J.
They conducted a research named “Understanding why firms should invest in sustainable supply chains: a complexity approach”. It stated that sustainable supply chain 4 management should consider the three aspects economy, society, and environment as listed in the triple bottom line approach and a successful sustainable supply chain must be able to satisfy the tripple bottom line criteria. There have been lots of researches relating to sustainable supply chain management but litte ones are conducted to go into the specific case of sustainable supply chain management in tourism. One of the most relevant researches on this topic is the study by Xu, X.
(2015) named “A conceptual framework of sustainable hospitality supply chain management.” Firms must have a detailed hospitality supply chain framework to develop. It study also discusses the antecedents, consequences, actions, evaluation mechanisms, and sustainability practices that can be implemented by all members of the supply chain on three dimensions (environmental, social, and economic) of the sustainable supply chain management in hospitality business following the principles of triple bottom line reporting (3BL) approach.