preview

The Supply Chain Functions For The Fast Food Industry

Good Essays

The fast food industry uniquely supplies desired food products at almost lightning speed. Managing the supply chain function for the fast food industry can be quite challenging. There are many critical elements in supply chain management. For the fast-food industry, such as Wendy’s, in my opinion the most important elements are impacted by six critical element drivers: facilities, inventory, transportation, information, sourcing and pricing. However, the most important driver for franchisors and franchisees along with their vendors, to ensure optimal results is definitely pricing to control cost.
The first driver, facilities, identifies “where product is stored, assembled, or fabricated” (Chopra et al, 2013). Fast food restaurants must decide on locations for production and storage. These locations must be usable and functional spaces that will eliminate waste and additional cost. These facilities must also meet jurisdictional governmental regulations for food safety purposes.
The second driver, inventory, includes “all raw materials, work in process, and finished goods” (Chopra et al, 2013). Fast food restaurants are tasked with sourcing and procuring raw materials and finished goods to deliver products to consumers. This task can be difficult, as some materials and/or goods may be sourced both domestically and globally. These materials must be procured for immediate consumption, as to not risk having dead stock and drive up monthly inventory costs.
The third

Get Access