Read the Chapter 11 Case Study "Darden's Global Supply Chain", then write a summary of at least 300 words using the accompanying discussion questions to guide your essay written in APA style, with a reference page and a cover page. APA requires double space. Your essay will be checked for originality via SafeAssign. There is not a target for matching but your instructor will be assessing that you have used your own words with proper in-text citations and quotation marks for direct quotes.
This is the discussion question Describe the traditional adversarial relationship with suppliers when using the “three quotes” system and how that changes with a supply chain system with one or few suppliers.
This is the case study
Darden Restaurants(subject of the Global Company Profile at the beginning of this chapter), owner of popular brands such as Olive Garden and Longhorn steakhouse, requires unique supply chains to serve more than 300 million meals annually. 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 1.8 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 and 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, 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 B2B, where restaurant managers directly place orders with preselected group of independent suppliers.
Forth, 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 the 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. Communications 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”