Question: Question (1) : Based on what you have studied about Supply Chain Management, read the following case study carefully, and answer the below discussion questions:
Question (1): Based on what you have studied about Supply Chain Management, read the following case study carefully, and answer the below discussion questions: (10 marks)
Darden Restaurants, owner of popular brands such as Olive Garden and Red Lobster, requires unique supply chains to serve more than 300 million meals annually. Dardens strategy is operations excellence, and senior Vice president task is to ensure competitive advantage through Dardens supply chains. For a firm with purchases exceeding $ 1.5 billion, managing a supply chain is a complex and a challenging task.
Darden, like other casual dining restaurants, has unique supply chains that reflect its menu options. Dardens supply chain often having one tier suppliers. But it has four distinct supply chains.
First, smallware is a restaurant industry for items such as linens, dishes, tableware, and kitchenware. These are purchased and received at the Darden Direct Distribution (DDD) warehouse. From this single warehouse, smallware items are shipped via common carrier (trucking companies) to Olive Garden, Red Lobster and Bahama Breeze.
Second, frozen, dry, and canned food products are handled economically by Dardens 11 distribution centers which are managed by major food distributors. This is Dardens second supply chain.
Third, the fresh food supply chain (not frozen and not canned), where life is measured in days, includes dairy products, and meat. Restaurant managers directly place orders with a preselected group of independent suppliers.
Fourth, Dardens worldwide seafood supply chain is the final link. Here Darden has developed independent suppliers of salmon, shrimp, and other fresh fish that are inspected by Dardens overseas representatives to ensure quality. These fresh products are flown and shipped to 16 distributors, with 22 locations, for quick delivery to the restaurants. Darden must be on the latest advancements when it comes to collaboration, communication, and food safety. It does this with heavy travel schedules for purchasing and quality control, and aggressive communication. Communication is a critical element; Darden tries to develop as much forecasting transparency as possible.
Discussion Questions:
- What are the advantages of each of Darens four supply chains?
- What are the complications of having four supply chains?
- What is the type of external supplier that Darden deal with? explain your answer giving one evidence from the case study above.
- From your opinion, how should Darden go through the approach of green supply Chain management? (Explain one action only)
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