African Journal of Hospitality, Tourism and Leisure (Mar 2020)

The prospect of using concurrent engineering for enhancing supply chain efficiency and reducing costs in the hospitality sector

  • Ali Hilal Union ,
  • Hatem Karim Kadhim,
  • Ahmed Maher Mohammad Ali

Journal volume & issue
Vol. 9, no. 2

Abstract

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The research aims to show the role of concurrent engineering in enhancing supply chain efficiency and reducing its costs. The Baghdad Tourism hotel suffers from many problems, including inappropriate pricing and poor quality of services that is rendered to customers. There are many tourist services provided efficiently by competitors in the hospitality sector to the customer. This factor has led customers to go to other rival companies, decreasing the revenues and leading to the loss of any competitive advantage. Supply chain costs rises lead to higher total tourism service costs. The research uses a statistical questionnaire on (60) respondents in the company leading to hypothesis testing by a statistical program (SPSS). Findings significantly showed that costs of supply chain activities can be reduced if services rendered are carried out concurrently by eliminating similar activities. Concurrent engineering is a tool which enhances supply chain capabilities by reducing the costs and increasing the revenues. The statistical analysis showed that the general average of research variables in which the calculated value of (T) amounted to (6.786) which is greater than the tabled value of (T) amounted to (1.671) with a degree of freedom (59) and a significant level (5%). This led the researchers to accept the research hypothesis. This study shows the concepts of concurrent engineering and supply chain can be integrated. Many of the previous studies refer to the study of concurrent engineering or supply chain separately, thus this is somewhat unique. The research presents important recommendations represented by the need to use the technique of concurrent engineering to reduce the supply chain costs such as purchasing, transportation, storage and quality costs. These recommendations may enhance the company's future performance.

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