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Supply Chain Logistics: How They Keep the Lights on in Las Vegas
Every year,
more than 40 million people visit Las Vegas. Year-round hotel occupancy averages over 85 percent, and statewide gaming revenues exceeded $11 billion in 2014, according to the
Gaming Control Board. With such a tremendous influx of tourists, how does the City of Lights keep everything powered on and flowing?
Las Vegas Lighting Logistics
One typical Las Vegas casino, with all of its bells, whistles, and electronic machines, can easily rack up a six-figure power bill in a single day. According to
Ask.com, the average monthly industrial power consumption in Las Vegas, at 305,373 kWh (kilowatt hours) is 172.27 percent more than the national average—and casinos consume the majority of power. In fact, Las Vegas uses 15 percent of the electricity generated by the Hoover Dam, and analysts predict even this is insufficient to meet the city’s future needs.
Behind the Scenes: Las Vegas Supply Chain Logistics
A vast majority of the Las Vegas economy revolves around casinos and hotels. With tens of millions of guests flooding the city each year, the supply chain for the Vegas economy is based heavily on service—after all, it is the Vegas experience that attracts tourists to the area. Gaming, food, lodging, and entertainment are all service-based industries, and the logistics of Las Vegas reflect on the importance of quality service.
Key stakeholders in the Vegas supply chain include:
- Casino service delivery: Customer service is a crucial ingredient for success in a Vegas casino. This makes casino employees an important primary investment for operators—when guests have a great experience and are treated well by employees, they’re more likely to return to that casino and recommend it to friends.
- Physical environment: The comfort, design, and appearance of a casino are also critical for providing a superior guest experience. Aspects such as ambient conditions, floor layout, interior décor, cleanliness, and seating comfort encourage guests to stay longer and typically spend more money at the gaming tables. Supply chain stakeholders in this area include architects and designers, ventilation suppliers, mechanics, power suppliers, and casino employees.
- Equipment vendors: Las Vegas casinos rely on the latest gaming machines and innovations to attract guests. Working with reputable gaming equipment vendors who adhere to the regulations surrounding gambling in Nevada is an essential step in the supply chain.
- Technology vendors: Modern casinos are heavily technology-oriented. Most casinos employ technology systems for CRM, POS, in-room entertainment systems, customer tracking, slot card systems, and more. Las Vegas casinos rely on both hardware and software technology vendors as a crucial part of their supply chain.
- Supervisory agencies: The gaming industry is highly regulated, which makes the Nevada Gaming Commission and State Gaming Control Board a key stakeholder in the service-focused casino supply chain. Without authorized permission, casinos are unable to provide any service.
Challenges in Las Vegas Logistics
In an economic recession, people have less money to spend on entertainment. The Las Vegas economy faced this challenge when the U.S. economy worsened, and still faces it today as the overall economy continues a slow recovery. Widespread marketing campaigns by the Nevada tourism board helped to maintain the City of Lights, but on an individual basis, many casinos and hotels are maximizing revenues by
streamlining the supply chain process, resulting in reduced costs and saved time.
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Best practices for supply chain management in Las Vegas include technology-based solutions that provide real-time information on aspects such as
inventory levels, product availability, shipping status, and more. Technology can also help to reduce casino costs with systems that track gaming revenue. Untracked revenue is a common issue for Vegas casinos, particularly at busy gaming tables.
Finally, advanced fixed
asset tracking systems can deliver substantial cost savings to casinos. Comprehensive real-time tracking for hardware and software assets, combined with IT tools and equipment allow casinos to quickly identify equipment locations, status, and maintenance schedules. These systems ensure smoother operations that keep guests happy and at the tables longer.
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