Darden Restaurant Case Study

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  • Topic: Supply chain management, Supply chain, Logistics
  • Pages : 3 (727 words )
  • Download(s) : 1313
  • Published : July 4, 2011
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State any business problem that the enterprise needs to resolve. I think that since the Darden company is outsource both the cutting of salmon to the proper portion size and the cracking/ peeling of shrimp more cost- effectively offshore than in U. S. distribution centers or individual restaurants. It appears to me they might have some economical issue. (Heizer, Render, 2011)

Briefly summarize relevant background information from the case. Darden Restaurants, owner of popular brands such as Olive Garden and Red Lobster, serves more than 300 million meals annually in over 1,700 restaurants across the U. S. and Canada. To achieve competitive advantage via its supply chain, Darden must achieve excellence at each step. With purchases from 35 countries, and seafood products with a shelf life as short as 4 days, this is a complex and challenging task. Those 300 million meals annually mean 40. Darden personnel from supply chain and development, quality assurance, and environmental relations contribute to developing, evaluating, and checking suppliers. Darden also has seven native- speaking representatives living on other continents to provide continuing support and evaluation of suppliers. All suppliers must abide by Darden’s food standards, which typically exceed FDA and other industry standards. Darden has found that it can outsource both the cutting of salmon to the proper portion size and the cracking/ peeling of shrimp more cost- effectively offshore than in U. S. distribution centers or individual restaurants. (Heizer, Render, 2011)

Describe how the enterprise dealt with its issues, if relevant. Comment on the appropriateness of these actions based on your reading and understanding of the chapter content. You can cut down on the cost of labor. This is because there are several costs that you do not have to meet when working with a freelancer. Operation costs for outsourced projects are usually lower than those of internally-executed...
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