Supply Chain Management assignment 2

Topics: Supply chain management, Supply chain, Management Pages: 12 (3284 words) Published: January 19, 2015


SUPPLY CHAIN AND OPERATIONS MANAGEMENT
A case study of:1) Fast food (pizza) restaurant
2) La carte (pizza) restaurant

A supply chain is a network of facilities and distribution options that perform the functions of: Procurement – That interfaces with the supply side of the network to bring in materials and services into the operations. Operations – That transform these materials into intermediate and finished goods and products. Distribution of these finished products to customers1.

Supply chain management is the management of the flow of products and services between customer’s customers and supplier’s suppliers2. The main objective of supply chain management is to satisfy the end customer. Each operation in the chain should be satisfying its own customers, with the ultimate objective of making sure that the end customer is satisfied3.

There are a number of food outlet restaurants operating in the different sectors of any economy, these range from small mobile shelter businesses, home based operations to large multi-billion dollar corporate franchises, such as Nandos’, Maxis’, etc. This paper is based on observations we made on two types of restaurants, which are Debonairs Pizza, a fast food pizza restaurant and Piza e Vino, a la carte pizza restaurant.

Debonairs Pizza
Debonairs Pizza is one of the leading pizza restaurants in Africa;it was established in 1991 and is now part of the highly successful Steers Group of Companies, (now known as Famous Brands).

Debonairs Pizza’s method of sale includes:
Over the counter sales (Take outs).
Door to door delivery service through phone in order taking. In restaurant seating facility, though with limited in capacity.

Piza e Vino

Piza e Vino is a restaurant that prides itself on its traditional Italian style food and wine. Destination malls are what the main focus for Piza e Vino restaurant goes for when looking for a site to open any of their stores, the target market for the business is upmarket middle to upper income earners. Their restaurant business is largely based on customer service which enables them to charge a premium for their products.

Their methods of sale include:
Booked tables & Reservations (telephone or online)
Sitting arrangements for inside & outside the restaurant with occasional live entertainment

Both types of restaurants prepare and sell pizza, but differ in their model of operation and exist in differently configured supply chain networks. Debonairs Pizza deals with standardised pizza menus which are determined by the parent Franchise Company (Famous Brands), their branches having no firm control over these menus. Its main thrust is on uniformity and maintenance of Franchise standards across all franchisee shops. On the other hand Piza e Vino sells once off specially prepared pizza that is fire cooked. Customers are free to determine the variety in the menu of their choice. Each branch of Piza e Vino always updates its menu on a regular basis, which is usually every 3 months. The two restaurants cater for different market segments with the demand side of the supply chain being a major consideration in their pricing structure and location decisions. These demand factors are: Suitability of site – in terms of traffic volume, atmosphere, visibility, etc. Image of location – Customer and general consumer perception of location Convenience for customers – Parking, space, security

Debonairs Pizza restaurants are situated in highly populated areas such as busy shopping malls and busy streets. With 90 percent of their customers buying take outs, the design of the restaurant’s sitting in arrangement is meant to cater for customers who are waiting for their orders to be processed or for those who want to have a quick meal in the restaurant. See fig 1. On the other hand, Piza e Vino is located in upmarket shopping complexes with ample,...
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