subject: Strategic Sourcing

Appendix 1

You are a Procurement Analyst at the head office of restaurant chain Tim Hortons (TH). You are responsible to create a recommendation to the Procurement Manager regarding the evaluation criteria of proposals for the supply of disposable tableware (such as paper cups, straws, napkins, cutlery, etc.).

Founded in 1964, TH is one of the largest donut/coffee/tea restaurant chains in North America and the largest in Canada as measured by total number of restaurants. As of December 31, 2021, [TH] owned or franchised a total of 5,291 TH restaurants. TH restaurants are quick service restaurants with a menu that includes premium blend coffee, tea, espresso-based hot and cold specialty drinks, fresh baked goods, including donuts, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups and more. (Restaurant Brands International Limited Partnership, December 31, 2021, p. 4)

THs Business Strategy is as follows:

We believe that we have created a financially strong company built upon a foundation of four thriving, independent brands with significant global growth potential and the opportunity to be one of the most efficient franchised QSR operators in the world through our focus on the following strategies:

accelerating net restaurant growth;

enhancing guest service and experience at our restaurants through comprehensive training, improved restaurant operations, reimaged restaurants and appealing menu options;

increasing restaurant sales and profitability which are critical to the success of our franchise partners and our ability to grow our brands around the world;

strengthening drive thru and delivery channels to provide guests convenient access to our product offerings;

utilizing technological and digital initiatives, including loyalty programs, to interact with our guests and modernize the operations of our restaurants;

efficiently managing costs and sharing best practices; and

preserving the rich heritage of each of our brands by managing them and their respective franchisee relationships independently and continuing to play a prominent role in local communities. (Restaurant Brands International Limited Partnership, December 31, 2021, p. 5)

question 1:

Additional Supplier Decisions What would you recommend to the procurement manager for the following choices:

a) Should you use a single source, dual sources, or more than two?

b) Should you buy from a manufacturer or a distributor?

c) Where should the supplier be located?

d) Relative to the organization, should the supplier be small, medium, or large?

e) If no supplier can be found, should you use supplier development?

f) Other

Question 2:

Forecast How would you forecast the quantity of disposable tableware required? Why is this forecast important? Give some examples of the implications of forecasts.