The supply chains strategies employed by Darden are supported by other critical components. According to Jim Lawrence, Each of the supply chains have needs to minimize cost while optimizing service. For example, their seafood primary facilities are located close to the port locations, so that they do not duplicate transportation cost. They purposely located those primary facilities in large port locations. Jim Lawrence said that “We ensure that we have service be supported at high level, because we know that the further away from our restaurant base that we are, our service becomes even more and more difficult to provide, so to have balance between service and cost.”
Large company such as Darden, it is not difficult to find suppliers interested in partnering; the challenge is in finding the best match for the long terms. Jim Lawrence said that “we work with all types of suppliers. We work with small mom and pop suppliers, all the way to multinational companies. But we always treat those suppliers with the same respect and care, and understanding of their needs, as we work, at the end of the day to support the needs of our restaurants and our guests. And so it’s about trying to find that balance between a supplier need and a customer need.”
Supply chains are also critically in vertically every sector, from grocery stores to hospitals, where supplies are delivered daily. In spite of Darden, not wanting to be in the distribution business, it has remained flexible and put the necessary pieces together, including building the distribution networks and management team required for efficient and reliable supply chain.
I cannot know from video that Darden has keiretsu network, but I think Darden should have keiretsu network. If Darden has it, Darden can reduce total costs. That will be great for their supply chain management. Darden care a risk about supplier quality failures, and tactics are careful supplier selection, training, certification, and monitoring. That is good point for Darden, and. Jim Lawrence said “But we always treat those suppliers with the same respect and care, and understanding of their needs, as we work, at the end of the day to support the needs of our restaurants and our guests. And so it’s about trying to find that balance between a supplier need and a customer need.” I am impressed their thought. As a result, now I know why Darden is successful in the supply chain management.
Reference
Heizer, Jay H., and Barry Render. Operations Management. 11., Global ed. Upper Saddle River, NJ [u.a.: Pearson, 2013. Print.
http://mediaplayer.pearsoncmg.com/_ph_bp2_cc_set.title.Darden's_Global_Supply_Chains__/bp_mylabs/akamai/2012/om/heizer/Darden_Global_Supply.m4v