Darden 1

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Where would Supply chain management is about reducing costs, when

adding another supply chain the costs increase thus losing


you expect your competitive advantage.
Darden has an extensive supply chain. Each year the various
ownership/title supply chains carry billions of dollars of inventory to each
restaurant. If inventory is damaged during shipment it is
to change in expected that the company with the legal title to the
inventory would be fully responsible for the inventory.
each of It would be expected that ownership is transferred to the
Darden's four individual restaurant when the shipment of inventory
arrives.
supply chains? This shipping method is called FOB destination and defined
as to transfer the title to the goods to the buyer as soon as
(1/2) they’ve arrived at the buyer’s location.
1. Smallware Items (linens, dishes, tableware and kitchenware,
and silverware)

Where would The title changes once they are received at the Darden Direct
Distribution (DDD) warehouse in Orlando, Florida
you expect 2. Frozen, dry, and canned food products
They are handled economically by Darden’s 11 distribution centers in
ownership/title North America, which are managed by major U.S. food distributors,
such as MBM, Maines, and Sygma.
to change in The ownership changes as soon as they are received at each of
restaurants.
each of 3. The fresh food supply chain (not frozen and not canned), where
product life is measured in days, includes dairy products,
produce, and meat.
Darden's four This supply chain is B2B, where restaurant managers directly place
supply chains? orders with a preselected group of independent suppliers.
4. Seafood (salmon, shrimp, tilapia, scallops, and other fresh fish)
(2/2) These fresh products are flown to the U.S. and shipped to 16
distributors, with 22 locations, for quick delivery to the restaurants.
The ownership changes as soon as they are received at each of
restaurants.
Due to the uniqueness of Darden’s company, the strategic
How do Darden’s supply chain differs than that of a company such as Dell or
an automobile manufacturers.
four supply chains
Dell produces various products with similar pieces. All these
compare with those pieces go to warehouses but are not distributed to various
of other firms, such different places thus not as extensive management is
needed.
as Dell or an Automobile manufacturing is extensive part management
automobile but all parts are managed in one warehouse making control
easier.
manufacturer? Why Darden’s supply chain is far more extensive and requires
do the differences more control than any comparison company.
The ownership changes as soon as they are received at each
exist, and how are of restaurants.
they addressed? Having an effective supply chain in the restaurant industry
has been proven, by Darden, to create a competitive
(1/2) advantage.
How do Darden’s
The number of production place (centralized or
four supply chains disperse).
compare with those The variation of final product (similarity of
of other firms, such product and where it is consumed).
as Dell or an Type of supplier (how high the level of control or
automobile inspection).
manufacturer? Why Characteristic of materials/goods (how to store it
do the differences in warehouse).
exist, and how are Material/goods product life (how long and how to
distribute it from origin/distributor warehouse to
they addressed? production place).
(2/2)

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