Miami-based IPC manages the supply chain from manufacturers through the distribution centers and into the 24,000 stores. Its responsibilities include negotiating pricing, maintaining relationships and managing quality.
Subway awards C.H. Robinson 'Supply Chain Partner of the Year'
Filed in archive Best practice on September 1, 2008
Subway restaurant chain, the world's largest submarine sandwich franchise, has named C.H. Robinson Worldwide as its "Supply Chain Partner of the Year." eTrucker reported. Selected out of 115 supply chain providers in North America, C.H. Robinson was recognized for its outstanding support in supply chain management.
"In 2004, Subway franchises and C.H. Robinson formed a strategic alliance that has produced benefits far greater than initially anticipated," says Jan Risi, the president of Subway's independent purchasing cooperative. "C.H. Robinson assisted us with the development and implementation of our two-phase managed freight solution, our transportation Center and our portfolio freight bidding. This has resulted in the identification and realization of millions of dollars in documented savings and cost avoidance for Subway franchisees."
C.H. Robinson's Transportation Management Center (TMC), a division of C.H. Robinson helps Subway franchises to better manage their freight costs through greater visibility into Subway's franchise supply chain
IPC Streamlines the Supply Chain for the Subway Restaurant Chain
SupplyChainBrain | January 06, 2011
The dedicated cooperative has one customer and “11,000 bosses.” The story of how IPC succeeded in making the Subway supply chain significantly leaner and greener.
On paper, Independent Cooperative Inc. (IPC) has one customer: the Subway restaurant chain. In reality, it serves many masters.
Subway is, after all, a franchise operation, and IPC is the independently owned purchasing cooperative that services its 32,000 stores. “I have 11,000 bosses,” says IPC president and chief executive officer Jan Risi. “And every single one of them has my cell-phone number.”
Innovation is key to Subway’s success. In 2008, the chain scored a hit with its $5 foot-long sandwich promotion. But new ideas are also essential to the workings of the company’s supply chain.
Risi and her team saw an opportunity to drive improved efficiencies in the way IPC supplied the stores – and, not incidentally, to create a more sustainable operation. So the company put together a strategic plan that would scrutinize every step of the process.
IPC faces a number of challenges in supplying the franchisees, according to vice president of purchasing Dennis Clabby. The meat, bread and other ingredients that go into Subway sandwiches are highly perishable, often requiring temperature-controlled transportation. As a result, speed is always of the essence. And the rapid growth of stores in the chain – the number nearly tripled between 1995 and 2009 – makes it tough to keep pace with orders.
Among the goals of the strategic plan were a greater reliance on cost-efficient truckload transport and faster inventory turns. Early on, IPC asked transportation services provider C.H. Robinson Worldwide Inc. for help in analyzing the dry distribution network. The exercise led to the consolidation of multi-SKU shipments of dry products, to reduce the number of...