Darden’s Global Supply Chain
The Darden restaurant owns numerous brands like the Longhorn Steakhouse and Olive Garden. Annually, the restaurant line serves over 300 million meals; therefore, it is a must for the company to have a unique supply chain. Also because its total purchases surpass $1.8 billion.
Part I
Garden’s supply chain is a four-fold. One of the chains deals with small ware. It includes items like tableware, dishes, linens and kitchenware. The item’s quality is maintained at a high level, due to that they are dispatched to the restaurants from the headquarters. On top of this, shipping of the items is carried out by corporate carriers, thus significantly reducing the price of shipping and simplifying the delivery process.
The second supply chain entails item with a short product life. They are mostly fresh foods and include farm produce and dairy products. The strategy employed in this chain is that Darden has preselected firms, which are independent suppliers and involve the business to business model. When the restaurant managers require any fresh food, they place orders to the specific independent supplier. This method advocates for the delivery of fresh produce.
Thirdly, there is a supply chain that manages canned, dry and frozen food products. Eleven distribution centers of Darden handle this chain. The strategy Darden uses to improve efficiencies in this distribution chain is letting the centers to be managed by chief food distributors of the United States. The distributors ensure the delivery process is of high quality by monitoring, planning and undertaking the shipment.
Finally, there is a supply chain for seafood. Here, Darden has overseas representatives who inspect the qualities of the product to the 16 distributors.
Part II
Despite the numerous advantages in the supply chain, there exist many complications. The supply chains are problematic due to that they are complex and require substantial amounts of money. The intricacy is brought by due to multiple suppliers from several nations, supplies are required in massive quantities, and delivery involves flights or driving for lengthy distances. The supply chain demands high legal and shipping costs; for instance, for seafood, it utilizes inspectors and transportations of fresh food needs complex transportation systems. In the case the Florida warehouse for small ware is meddled, the company will experience difficulties in obtaining other suppliers of the items. Overall, managing the distinct supply chain is challenging and requires expertise and organizational strategies.
Part III
The likely changes in ownership of the products are at the specific points that they reach the companies hands. Because of the different supply chains, it is expected that the particular points of change are different in all of the chains. For example, title changes in the small ware may happen once they reach Darden Direct Distribution storeroom located in Orlando. The seafood is imported; thus, ownership changes occur once they are delivered to the territory of the U.S. For the canned, frozen and dry foods, changes happen when they arrive at the restaurants.
Part IV
Supply chains of companies like Dell (a computer firm) and automobile manufacturers differ from that of Darden. These two companies manufacture products that are ingenious or new to the market; therefore, their supplies tend to clasp the significant modules until they are required and delivered to the assembly units. However, when it comes to Darden, their supplies need to be readily available as most of them are fresh products; therefore, Darden needs warehouse or distribution center, which is contrary to Dell and automobile firms.
Reference
Darden’s Global Supply Chain