Supplay Chain Management Essay example

5042 Words Mar 21st, 2011 21 Pages
Chain Leader: Subway franchisees have found a way to ensure a safe and consistent supply chain by using an Internet-based supply-management system. Subway's Independent Purchasing Cooperative, which is owned by the chain's North American franchisees, has been using supply-chain software since the end of 2001 and rolled out the food-quality component, called Qualitynet, in 2004. 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.
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Up to then, vendors of protein products had been making the items in one place, shipping them to inventory, then moving them to the distribution center. Each stage made it harder for the carrier to maintain a constant temperature, reducing product shelf life.

IPC turned to two vendors, West Liberty Foods and Millard Refrigerated Services, for help in creating a redistribution system and new cold consolidation facility in Iowa. At the co-managed site, WLF operates 24 separate “operating rooms” for slicing. In an attached warehouse, Millard palletizes, shrink-wraps and stores product before it is shipped to the distribution centers. For outbound shipments, the company again looked to C.H. Robinson to make exclusive use of truckload transport.

In the process, says Clabby, IPC has increased inventory turns, prevented the cross-contamination of meats between slicing lines and boosted the freshness of product. “Proteins” are now 66 percent fresher when they reach Subway restaurants, according to IPC.

Packaging was another target of the efficiency effort. Once again, a strong vendor partnership was called for. At the suggestion of C.H. Robinson, IPC began working with Select Product Group (SPG), a supplier of packaging and paper, to create a highly automated regional distribution center. IPC was able to cut the number of individual items shipped to DCs from 160 to 12, even as it boosted the

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