Managing the forces of supply and demand for Macau's booming economy is critical for profitability and jobs. Most hotel and casino visitors probably don't think too much about supply chain management. They might not even know what it is. But any business manager will tell you it is crucial to success.
Supply chain management is the art and science of getting materials and products from one place to the other most efficiently. Every truck on the roads, container on a ship or train, or towel hanging in a hotel bathroom is part of a complex system of supply and demand.
Managing director of logistics giant Kuehne + Nagel (Asia-Pacific) Management Andy Weber said the rapid boom in Macau's economy, driven by the gaming industry, had placed immense pressure on the city's ability to keep pace.
Mr Weber said the needs of Macau's traditional textile and shoe manufacturing industry, were vastly different from those of the hotel and gaming sector.
'In the past, Macau was very much geared to service its export industry,' he said. 'There is now a dramatic change where the majority of logistics moves are for importing pre-opening and replenishment supplies for the hospitality and gaming industry as well as its supporting vendors.'
Mr Weber said the region's infrastructure, human resources and logistics capabilities were all pushed to the limit. This was made even more difficult by the growth in demand for food and beverages.
Faced with outdated infrastructure and limited suppliers, Macau's hotel and casino operators have been forced to import massive amounts of equipment and hotel supplies. This included everything from construction materials, custom-made furniture, fixtures and equipment, gaming supplies, food, beverages, room amenities and textiles.