Dardens Global Supply Chain - Essay Example

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Red Lobster was among its chain of restaurants until 2014. If you consider Darden’s massive number of eateries under its umbrella, it might be one of the biggest eateries all over the world. Having this great number of restaurants means that they employ many people. So far, they have over two hundred thousand employees working in different chains all over the globe. In 2012, Darden was included in the Fortune 500, and it was the only firm with its head office in Greater Orlando. 

In this Darden’s global supply chain essay, you will learn how the company has managed to outcompete other restaurant chains by being ahead of the game using different tactics. One of the most significant, and having the most considerable boost in their business is the supply chain. The restaurant spends a whopping $2.5 billion on purchasing food products for its eateries. There source all these supplies from 35 different nations, creating a massive environment and economic effect.

For instance, whatever they buy requires various input. Therefore, they will require resources like energy, water, and many more. Additionally, everything that they procure requires excellent packaging and transportation that ought to be facilitated by the established supply chains. All these are needed at all distribution centers for subsequent delivery to all their restaurant globally. Hence, many people depend on this cycle for their livelihoods.

Darden has created an efficient supply chain system to ascertain that all its eateries are running smoothly. They have created four supply chains, and one of the most amazing is silverware and others that closely relate to this group.

They get all these products from the head office that makes sure that only the best quality arrives at the final destination in every nation. One of the biggest gains of utilizing this strategy is that everything comes from a single go down, and when shipped, they use the same courier for all shipments. This way, Darden massively cuts down on the transportation prices of a majority of their items.

The second part of the supply chain is for all foods that are supplied when frozen or already prepared in cans. Darden makes sure that everything is handled by their distribution centers in North America, which is a great advantage. They have all big Unites States of America food suppliers in their docket. The third supply connection is for fresh food. This channel ascertains that all Darden restaurants receive new supplies whenever they are out of stock.

Darden has taken a unique approach to the delivery of its supplies, making sure that everything is streamlined. Everything is from one business to another as all the restaurant managers give their unique order according to the stock that they require. The fourth and final supply connection is seafood. The firm has various suppliers for seafood, considering the volatility of this market. This is an advantage to them as it cushions them when other suppliers cannot deliver.

Although having various supply chains is an advantage, it comes with its complexity. When you have numerous products going to different eateries regionally and oversees, managing such a complex network becomes hard. One of the biggest challenges is the massive expense of running such. It is expensive managing four supply links, and when you are handling foreign suppliers, poor correspondence can lead to mismanagement.

Ownership of all supplied goods alters at the point the item is in the company’s hands. And in all the supply chains, ownership alters based on various guidelines. For instance, small ware ownership changes immediately, and the goods are in Orlando at Darden Direct Distribution’s warehouse. However, for frozen goods, it only alters once they have arrived at the respective restaurants. When it comes to seafood, ownership in the supplied link changes once delivered to the United States of America territory by the suppliers.

The firm has put a great deal of effort into choosing the best distribution centers to make quick deliveries. With such an effective management style, they have a competitive advantage in the market that makes them more responsive. Because of Darden’s consistent inventory flow, they can satisfy the needs of their customers.