Supply Chain Management of Dunkin Donuts - Thesis Example

and number] in format: 12 May 2002] Supply Chain Management of Dunkin Donuts Contents Introduction3 Supply Chain Management 3 Supply Chain Management of Dunkin Donuts 4 Dunkin Donuts Supplier Information 5 Dunkin Donuts Producers 5 Factory (Materials & Machinery Involved) of Dunkin Donuts 6 Storage of Dunkin Donuts 6 Shipping of Dunkin Donuts 7 Distributors of Dunkin Donuts 7 Retailers of Dunkin Donuts 8 Wholesalers of Dunkin Donuts 8 Final Customers (Goods & Services) 9 Dunkin Donuts Competitors: 10 Product Variety: 10 Marketing: 11 Quality Control: 11 Company’s Strategy: 11 Improvement Ideas: 12 Works Cited 13 Introduction This thesis would present the overall picture and working structure of the supply chain management of one of the most famous brands of the world, that is, Dunkin Donuts. Founded in the year 1950, the owner of Dunkin Donuts, Bill Rosenberg opened up his first shop of providing baked donuts and coffee services in the Quincy, Massachusetts. This small shop was welcomed whole heartily by the early morning breakfast lovers, coffee lovers, and several other people belonging from various classes and destinations. It is because of the popularity of the products provided by Dunkin Donuts that the owner decided to open up other small franchises of Dunkin Donuts right after five successive years of its establishment in 1955. Dunkin Donuts is famous for providing coffee and freshly baked products. Dunkin Donuts has gone through several multiple changes and challenges since the time it was established and now, it is proud to have more than 7988 stores all around the globe where the staff of Dunkin Donuts serves its customers with high quality food and coffee with more than the estimated customer base of 3 million customers daily. Dunkin Donuts has improved a lot with the passage of time and honorably provides more than 52 varieties of donuts, more than 12 different flavors of coffee with a huge variety of bagels, sandwiches and other baked products which are freshly baked everyday and served right from the oven of the kitchen. Supply Chain Management Supply Chain Management (SCM) can be understood as the cycle of procedures which provides the evaluation of the finances flow, product flow and information flow of the materials of the company which moves in a specific process to provide information starting from the supplier to manufacturer, manufacturer to wholesaler, wholesaler to retailer, and finally from retailer to the customer. It can be illustrated in a pictorial form for the ease of the readers by the following diagram: The Supply Chain Management Cycle Supply Chain Management of Dunkin Donuts (Frazelle 5) The purpose of the Supply Chain Management possessed by the Dunkin Donuts is same, which is to provide the information flow of material used by the company, flow of information, and flow of finances among different levels of the organization. Dunkin Donuts has become world-wide and an internationally renowned famous outlet whose main aim is to provide high quality food products to its customers on daily basis. For this, it has to support its Supply Chain Management process with full diversity and modesty. The Supply Chain Management of Dunkin Donuts also aims in to minimize the inventory for the ease of the company and its working processes, which involves synchronizing and amalgamating these flows within and among the companies. Different areas involved in the Supply Chain Management of Dunkin Donuts would be presented in the upcoming topics in the following. Dunkin Donuts Supplier Information Suppliers are one of the most important entities for Dunkin Donuts. the operations of Dunkin Donuts is spreader all around the globe and it is not responsible for producing ingredients or not direct involved in the direct manufacturing. For this purpose, Dunkin Donuts has contacts with individuals and several other businesses or companies who provide it with the goods, ingredients, sources, materials, miscellaneous equipments, machinery, and several other aspects. Some of the different areas in which Dunkin Donuts take help from its suppliers and make purchases from them are: Coffee scale Containers Mixer Baking materials Brewers Baked items Fryers Trash cans Beater Scales Coolers/Freezers Cutters/Creamer units Donut glazer Misc. equipment Coffee beans Filtrators Dunkin Donuts Producers Dunkin Donuts is an internationally recognized coffee and baked products chain which provides customers with the highest and most perfect quality of products possible. For this, the management of Dunkin Donuts adopts the strategy of a win-win situation and this could be achieved with the help of the producers who helps the company in containing enough sources and materials for its continuous supply of products to the regular customers and consumers on daily basis. For this purpose, the company has hired many individual farmers as well as cost effective contractors and companies as third parties who makes abundant production of the materials which are needed to be se in the coffee and baked items; such as, coffee beans producers, coffee blenders, wheat and grain producers, poultry (which includes creamed milk, skimmed milk and eggs) and meat producers, bread makers, sugar producers and there are so many others. Factory (Materials & Machinery Involved) of Dunkin Donuts Several factories have been set up all around the world where materials are treated to make fine quality of Dunkin Donuts products. These semi-finished products made in the factory are later shipped or transferred to the franchises where the management of those franchises use them to serve the consumers with fine quality coffee and baked products. The work done in the factories of Dunkin Donuts includes roasting of coffee beans, grinding of coffee beans, processing of milk, poultry and meat, treatment of grains and wheat, packaging and treatment of sugar and coffee along with syrups and drinks. All these treatments and processes are carried out by ultra modern machineries which are installed in the factories of Dunkin Donuts. Storage of Dunkin Donuts The storage capacity possessed by Dunkin Donuts has been never finally analyzed because the company does not have single one major storage areas. Rather than that, the company makes use of several storage areas because its operations are not limited to one city or country. Almost every particular country and city containing Dunkin Donuts branch has its different storage area, especially the locations where there is a Dunkin Donuts factory situated. Usually, the storage areas acquired by Dunkin Donuts store items like; fresh coffee beans, roasted and grinded coffee beans, grains, wheat, sugar, meat and poultry, papers, packages, baskets, boxes, and many other accessories involved or needed. Shipping of Dunkin Donuts Dunkin donuts is not only capable to serve its customer base of over 3 million people per day, but it provides delivery service to its customers as well as in of packages. The orders can be delivered to the United States and worldwide (except for some countries due to certain reasons) via UPS, a mailing service provided by the United States mailing services company. According to the rules of the company, the shipment can be delivered at the doorstep of the customer if the order has been placed worth of at least 100 US dollars or more. The shipment methods are of four kinds; which are: US Mail Priority – takes 3 to 5 days for delivery UPS Ground – usually takes 2 to 6 days business days UPS 2nd Day Air – requires 2 business days UPS Next Day Air Saver – provides overnight delivery Distributors of Dunkin Donuts Distributors are basically the companies or the third parties who neither manufacture nor develop the finished products, but they help the manufacturers in order to make supplies for the ease of working for the main manufacturing company, retail companies or other developers present in the marketplace. Dunkin Donuts is yet another company along with other companies around the globe who makes use of distributors and offer them good compensation or deal. The distributors of Dunkin Donuts include numerous famous and non-famous distributors. For example, one of the popular distributor companies who work for Dunkin Donuts is Dunkin Donuts Mid-Atlantic Distribution Center Inc. Retailers of Dunkin Donuts Retailing can be defined as the marketing or selling of goods or merchandise from a certain fixed permanent location, such as, from a shop or store. Retail development is often referred to as shops or stores where the brand distribute its products and services to customers with the help of that store or shop so that more people could be benefited by the products provided by the company. The retailers of Dunkin Donuts work very hard to get it promoted and succeed from its competitors by expanding its popularity and gaining over the marketplace within no time (Bygrave and Zacharakis 90). Recently, Dunkin Donuts has gone through a deal with Procter & Gamble to introduce its coffee products in several retail stores so that new customers could enjoy the feasts which would be available widespread (Associated Press). Wholesalers of Dunkin Donuts Wholesalers are generally the third-party individuals or companies who get involved with the operations of the company and help them in carrying out several operations, such as, buying and selling company’s products to other retailers, customers, industries, institutions, companies and other major places. They are also eligible and responsible for tasks like, assembling products for sale, delivering them ahead, packaging of products and other several things. Dunkin Donuts makes use of wholesalers in order to lessen down its burden of work from the main employees and workers and utilizes services of wholesalers to reach out to the far away customers and non-famous marketplaces where its products are not available due to absence of Dunkin Donuts franchise. The wholesalers also take care of the packaging and delivery of the Dunkin Donuts products from one place to another, which is from one franchise to another and from factory to franchise (Plunkett 283). Final Customers (Goods & Services) The final customers of Dunkin Donuts are mostly the consumers and officials who work in offices and take their morning coffee and baked items to eat while going to their destinations. These consumers are said to be 3 million per day who utilizes the products of Dunkin Donuts. They are served with coffee and baked items (donuts, muffins, sandwiches, drinks, shakes, bagels and others). These products are provided to the consumers through the franchises and outlets of Dunkin Donuts which are opened in several cities and countries of the world. Where there is immense population, then there are more than one franchises in each city for the ease of customers. Dunkin Donuts believe in serving its customer with freshly made products. The major portion of the products provided to the customers is already prepared in the kitchen previously and then they are completely prepared in front of the customer once ordered. Dunkin Donuts has also taken initiative to deliver its products to customers’ doorsteps by online orders transaction. The management of Dunkin Donuts also works out with experts to introduce new initiatives and products for the interest of customers and to give a competitive edge to its customers in the marketplace. Dunkin Donuts Competitors: Some of the major competitors of Dunkin Donuts which are present in the marketplace are Star Bucks Coffee, McDonalds, Tim Hortons, and Dairy Queen. Dunkin Donuts Inventory Control: (Justis and Vincent 155) Inventory control is the process through which the company or franchise manages the system of ordering, issuance and receiving of products to destinations or jobs while taking care of the number of products and their flow at the warehouse or storage areas. The inventory control of Dunkin Donuts is not the same followed by all its franchises because they are situated in different cities of the world. Thus, every owner is responsible for its inventory control and answerable only to the upper management of the Dunkin Donuts. It is because of the inventory control system, which helps in determining when the franchise needs a re-fill of product or which products are more famous in what rush hours of consumption. Product Variety: (Martin 184) Dunkin Donuts offers its customers with a huge variety of products. Some of its featured products can be listed as; such as, Donuts, Ice Tea, Muffins, Iced Drinks, Sandwiches, Pizzas, Bacons, White Hot Chocolate, Tropicana Coolatta, Indulgent Iced Lattes, Hot Coffee, Iced Coffee, Sausage Supreme, Supreme Omelet, Cookies, Flavored Coffee (with flavors of Hazelnut, French Vanilla, Original Blend, and Dunkin Decaf). Marketing: The marketing field of any company could be very fantasizing, amusing, frustrating or exciting at the same time. These are some of the variant variables of marketing which are affiliated with one another. Marketing is the process of spreading the good word of the company in the marketplace which could help in increasing the number of consumers of the products sold by the company. The marketing management of Dunkin Donuts helps the company in setting up the future plans and target goals for the coming years by deciding what measures should be taken in what areas and what new things are needed to be applied. Quality Control: (Sherman 54) Quality control is the process through which it is made sure that the quality of the product remains the same throughout the entire procedure. Dunkin Donuts is very picky when it comes to maintain the quality of the product. For this purpose, the company assures uniform quality of products and services sold in the franchises and the retail stores to maintain good quality control system for the most important supplies made by the distributors and suppliers. The quality control not only sticks to the quality of the products, but it also covers the cleanliness of the franchises, good services provided by the Dunkin Donuts staff and all that. This helps in building long-term customer relationships with the company Company’s Strategy: (Dunkin Donuts) The strategies applied by the Dunkin Donuts recently states that they would work in coordination with other franchises to expand the operations of Dunkin Donuts, would pay more focus on the quality of the products and services, would introduce more innovative initiated products and ideas, would come up with more customer oriented discounts and offer deals, and increase the number of franchises in every city. Apart from that, the three main strategies can be listed as: To expand the Dunkin Donuts brand nationally To grow internationally with enhance focus and discipline To transform Baskin-Robbins Improvement Ideas: After so many years of development, Dunkin Donuts has achieved its peak level of popularity and fame along with good reputation and an eager of people to have more products of Dunkin Donuts. But there are still some areas in which the internationally renowned chain of food needs some improvement to be carried out. These improvements are few; such as: Dunkin Donuts needs to increase the number of its franchises present in a certain city because its competitors (for instance, Star Bucks) normally has more branches than Dunkin donuts Dunkin Donuts could start a home delivery service at all the locations worldwide for better customer response Dunkin Donuts should also keep a check on the quality and services of its products being sold out in retail stores Works Cited Edward Frazelle, 2001, Supply Chain Strategy: The Logistics of Supply Chain Management, Published by McGraw-Hill Professional, p5. Adrian Haberberg, Alison Rieple; 2008, Strategic Management: Theory and Application, Published by Oxford University Press, p134. William D. Bygrave, Andrew Zacharakis; 2003, The Portable MBA in Entrepreneurship: case studies, Published by John Wiley and Sons, p90. Dunkin Donuts expands sales of packaged coffee, 2007, The Associated Press, Uploaded on: 13 August 2007, Avilable online at: http://www.usatoday.com/money/companies/2007-08-13-dunkin-donuts-coffee_N.htm Jack W. Plunkett, 2008, Plunketts Food Industry Almanac 2008: Food Industry Market Research, Statistics, Trends and Leading Companies, Published by Plunkett Research, Ltd., p283. Robert T. Justis, William Slater Vincent; 2002, Streetwise Achieving Wealth Through ranchising: A Comprehensive Manual to Finding, Starting, and Succeeding in a Franchise Business, Published by Adams Medi, p155. Susan Boyles Martin, 2008, Worldwide Franchise Directory: A Guide Offering Details for Comparing Franchises and Franchise Investment Opportunities Around the World, Published by Gale Research, Digitized Feb 12, 2008, p184. Andrew J. Sherman, 2003, Franchising & Licensing: Two Powerful Ways to Grow Your Business in Any Economy, Published by AMACOM Div American Mgmt Assn, p54. Dunkin Donuts, 2008, About Us, dunkindonuts.com, Available online at: https://www.dunkindonuts.com/aboutus/company/adqsr/Default.aspx?Section=press Read More