Darden’s Global Supply Chain Case Study Custom Essay
Complete the Darden’s Global Supply Chain case study on page 455. Answer the questions following the case study and follow the instructions in the Submission section below: Submission: The written summary should be 4-5 pages in length and include an introduction with a thesis statement, a conclusion that summarizes the main ideas, and at least 5-6 peer reviewed references. You will be using the FSCJ Library/Learning Commons & Google Scholar to complete your research. Each paragraph should have a topic sentence supported by 3-5 sentences that offer additional details, explanation, and examples. The paper should follow the APA format and be free of errors in grammar, sentence structure, and other mechanics. You probably will not have access to FSCJ Library/Learning Commons but you should have access to Google Scholar. Here is a copy of what is on P.455: Darden Restaurants (subject of the Global Company Profile at the beginning of this chapter), owner of popular brands such as Olive Garden and Red Lobster, requires unique supply chains to serve more than 300 million meals annually.
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Darden’s strategy is operations excellence, and Senior VP Jim Lawrence’s task is to ensure competitive advantage via Darden’s supply chains. For a firm with purchases exceeding $1.5 billion, managing the supply chains is a complex and challenging task. Darden, like other casual dining restaurants, has unique supply chains that reflect its menu options. Darden’s supply chains are rather shallow, often having just one tier of suppliers. But it has four distinct supply chains. First, “smallware” is a restaurant industry term for items such as linens, dishes, tableware, kitchenware, and silverware. These are purchased, with Darden taking title as they are received at the Darden Direct Distribution (DDD) warehouse in Orlando, Florida. From this single warehouse, smallware items are shipped via common carrier (trucking companies) to Olive Garden, Red Lobster, Bahama Breeze, and Seasons 52 restaurants. Second, frozen, dry, and canned food products are handled economically by Darden’s 11 distribution centers in North America, which are managed by major U.S. food distributors, such as MBM, Maines, and Sygma. This is Darden’s second supply line. Third, the fresh food supply chain (not frozen and not canned), where product life is measured in days, includes dairy products, produce, and meat. This supply chain is B2B, where restaurant managers directly place orders with a pre-selected group of independent suppliers. Fourth, Darden’s worldwide seafood supply chain is the final link. Here Darden has developed independent suppliers of salmon, shrimp, tilapia, scallops, and other fresh fish that are source inspected by Darden’s overseas representatives to ensure quality. These fresh products are flown to the U.S. and shipped to 16 distributors, with 22 locations, for quick delivery to the restaurants. With suppliers in 35 countries, Darden must be on the cutting edge when it comes to collaboration, partnering, communication, and food safety. It does this with heavy travel schedules for purchasing and quality control personnel, native-speaking employees onsite, and aggressive communication. Communication is a critical element; Darden tries to develop as much forecasting transparency as possible. “Point of sale (POS) terminals,” says Lawrence, “feed actual sales every night to suppliers.” Discussion Questions* 1. What are the advantages of each of Darden’s four supply chains? 2. What are the complications of having four supply chains? 3. Where would you expect ownership/title to change in each of Darden’s four supply chains? 4. How do Darden’s four supply chains compare with those of other firms, such as Dell or an automobile manufacturer? Why do the differences exist, and how are they addressed? Heizer, Jay; Render, Barry (2013-03-29). Operations Management (11th Edition) (Page 455). Prentice Hall. Kindle Edition. Here is the Global Company Profile at the beginning of the chapter: Darden Restaurants, Inc., is the largest publicly traded casual dining restaurant company in the world. It serves over 400 million meals annually from more than 1,900 restaurants in North America. Its well-known flagship brands—Olive Garden and Red Lobster—annually generate $3.5 and $2.5 billion, respectively. Darden’s other brands include Bahama Breeze, Seasons 52, The Capital Grille, and LongHorn Steakhouse. The firm employs more than 180,000 people and is the 32nd largest employer in the U.S. “Operations is typically thought of as an execution of strategy. For us it is the strategy,” Darden’s former chairman, Joe R. Lee, stated. In the restaurant business, a winning strategy requires a winning supply chain. Nothing is more important than sourcing and delivering healthy, high-quality food; and there are very few other industries where supplier performance is so closely tied to the customer. Darden sources its food from five continents and thousands of suppliers. To meet Darden’s needs for fresh ingredients, the company has developed four distinct supply chains: one for seafood; one for dairy/produce/other refrigerated foods; a third for other food items, like baked goods; and a fourth for restaurant supplies (everything from dishes to ovens to uniforms). Over $2 billion is spent in these supply chains annually. Darden’s four supply channels have some common characteristics. They all require supplier qualification, have product tracking, are subject to independent audits, and employ just-in-time delivery. With best-in-class techniques and processes, Darden creates worldwide supply chain partnerships and alliances that are rapid, transparent, and efficient. Darden achieves competitive advantage through its superior supply chain. Heizer, Jay; Render, Barry (2013-03-29). Operations Management (11th Edition) (Page 431). Prentice Hall. Kindle Edition. Heizer, Jay; Render, Barry (2013-03-29). Operations Management (11th Edition) (Page 430). Prentice Hall. Kindle Edition.
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