Question: Read this case study and answer the questions given at the end. Answer in detail Darden Restaurants, owner of popular brands such as Olive Garden,
Read this case study and answer the questions given at the end. Answer in detail
Darden Restaurants, owner of popular brands such as Olive Garden, Bahama Breeze, and Longhorn Grill, serves more than million meals annually in more than restaurants across the US and Canada. To achieve competitive advantage via its supply chain, Darden must achieve excellence at each step. With purchases from countries, and seafood
products with a shelf life as short as days, this is a complex and challenging task. Those million meals annually mean million pounds of shrimp and huge quantities of tilapia, swordfish, and other fresh purchases.
Fresh seafood is typically flown to the US and
monitored each step of the way to ensure that
F is maintained.
Darden's purchasing agents travel the world to
find competitive advantage in the supply chain. Darden personnel from supply chain and
development, quality assurance, and environmental relations contribute to developing, evaluating, and checking suppliers. Darden also has seven nativespeaking
representatives living on other continents to
provide continuing support and evaluation of
suppliers. All suppliers must abide by Darden's
food standards, which typically exceed FDA and
other industry standards. Darden expects continuous improvement in durable relationships that increase quality and reduce cost.
Darden's aggressiveness and development of a
sophisticated supply chain provide an opportunity for outsourcing. Much food
preparation is labor intensive and is often more efficient when handled in bulk. This is
particularly true where large volumes may justify
capital investment. For instance, Tyson and
lowa Beef prepare meats to Darden's specifications much more economically than can individual restaurants. Similarly, Darden has found that it can outsource both the cutting of salmon to the proper portion size and the crackingpeeling of shrimp more costeffectively
offshore than in US distribution centers or
individual restaurants.
What are the pros and cons of outsourcing? Do not limit your
response to seafood at Darden.
Assuming that outsourcing has advantages, what are five critical
skills, processes or activities do you believe that your organization
must have to make it successful?
If your organization does not have the scale of Darden, can
outsourcing still be successful and what other issues do they need to consider?
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