Supply Chain

When starting any type of business venture, one decision that most owners/management must make is whether the business should be web-based or be a "brick and mortar" type setting. Depending upon the type of business it is, this decision must not be made lightly, the pros and cons of each must be weighed because it is through the type of service that is offered that affects sales.

"The level Internet business environment actually rewards business efficiency and savvy marketing even more than the much more bumpy traditional brick-and-mortar environment (Clickstream Consulting, p1)." Many individuals today find it a lot more pleasing and very user friendlier to go through the websites for personal and business issues.

Also, owners/management must take into consideration which setting would be both beneficial and productive to the users/public. Start-up costs are another criteria that have to be considered. This is probably the most vital criterion versus all the others. When it comes down to it, how much do the owners really want to spend?

One of the most vital factors is the size of the business and its expected sales and traffic. As said before, budget is a big factor. Creating a web-based business is much more affordable than a physical building and location. The cost of creating a physical building, which may or may not include warehouses and retail outlets, is far more expensive versus the alternative.

A "brick and mortar" setting will also include maintenance, employees, utilities, inspections, and leases whereas a web-based business would not carry nearly as much cost. Careful planning and decision-making are key elements to choosing the format of the business.

Depending on the type of business planned, a "brick and mortar" type setting may not be feasible. In this fast-paced, technologically based world, people want what they want, right now. And, most times, they want to be able to pick and choose what products or services they desire at times that are convenient for them. And if that is the case, a web-based business is best suited for the type of niche the business caters to.

In this case, travel services are what will be discussed and how the supply chain is different from a "brick and mortar" type environment versus a web-based format. Supply chain management software is needed in order to coordinate planning and operations. This type of software is very important to the travel services industry because it provide two vital roles: planning and execution. Without these two roles, the travel services industry cannot function properly and major losses of revenue will occur.

In regards to the traveling services websites, it has been said that the Internet can be the best tool to find inexpensive fares quickly. However, although the world's technology has just gotten better throughout the years, many individuals still out there miss the fact that a travel agent is not involved in making decisions when booking a complicated flight. In simple terms, a "middleman" does not exist.

In the past they took care of everything for you and now websites such as Travelocity, Expedia, and Orbitz, just to name a few have taken over many of the travel agents jobs. Travel agencies are now more than ever facing tough competition from the Internet. Every individual has their own choice of how they can get things done

...