America revealed provides a great overview of key supply chain systems that are responsible for keeping the American as a nation thriving. One of the episodes “The Food Machine” explores the ways food economy works and keep more than 300 million Americans fed year round. This series highlights several important supply chain concepts. Three of the most significant one are discussed in detail as under:
Distribution Hubs
The Food Machine demonstrates how the large food chains Strategically establish their distribution networks. In order to keep thousands of locations up and running, distribution hubs are utilized to fed those locations, while the distribution centers themselves are constantly being fed from ingredients around the world. …show more content…
The prime example in this regards is the “bloomin onion”, i.e. Outback Steakhouse converted simple household item in a value added commodity. Value driven supply chain management brings several benefits for the business establishments, the most notable ones are:
Collaboration Increases revenue across the board for all the stakeholders – When the organizations succeeds in developing value added products, the results are felt across the board and everyone gains the piece of the pie. As demonstrated by the bloomin onion example, when it succeeded, it increased the demand of onions and created a whole new market of growing of a particular size.
Lower costs – Increased collaboration between various stakeholders enables long-term supply contracts which stabilizes the demand resulting in decrease in costs significantly. Long-term relationship also enables the stakeholders to pass costs to final consumers increasing overall profitability for all the members in the supply …show more content…
As demonstrated by the bloomin onion example, when it succeeded, it increased the demand of onions by thousands of tones which resulted in greater economic activity providing jobs to thousands of agriculture workers.
Strategic Sourcing
The Food Machine also demonstrates the use of strategic sourcing which is very important to be successful on large scale. The prime example in this regards is the “industrial scale farming”, e.g. State of California produces almost all of the tomatoes that are used in manufacturing tomato sauce. Having single supplier have a great benefit for the manufactures because it reduces costs. Some of the notable benefits of strategic sourcing include:
Greater cost savings without squeezing suppliers – When the organizations succeeds in developing long-term collaboration with large scale suppliers it enable greater costs saving. Large scare operation results in greater efficiency benefiting all the parting while reducing costs significantly without hurting
Distribution Hubs
The Food Machine demonstrates how the large food chains Strategically establish their distribution networks. In order to keep thousands of locations up and running, distribution hubs are utilized to fed those locations, while the distribution centers themselves are constantly being fed from ingredients around the world. …show more content…
The prime example in this regards is the “bloomin onion”, i.e. Outback Steakhouse converted simple household item in a value added commodity. Value driven supply chain management brings several benefits for the business establishments, the most notable ones are:
Collaboration Increases revenue across the board for all the stakeholders – When the organizations succeeds in developing value added products, the results are felt across the board and everyone gains the piece of the pie. As demonstrated by the bloomin onion example, when it succeeded, it increased the demand of onions and created a whole new market of growing of a particular size.
Lower costs – Increased collaboration between various stakeholders enables long-term supply contracts which stabilizes the demand resulting in decrease in costs significantly. Long-term relationship also enables the stakeholders to pass costs to final consumers increasing overall profitability for all the members in the supply …show more content…
As demonstrated by the bloomin onion example, when it succeeded, it increased the demand of onions by thousands of tones which resulted in greater economic activity providing jobs to thousands of agriculture workers.
Strategic Sourcing
The Food Machine also demonstrates the use of strategic sourcing which is very important to be successful on large scale. The prime example in this regards is the “industrial scale farming”, e.g. State of California produces almost all of the tomatoes that are used in manufacturing tomato sauce. Having single supplier have a great benefit for the manufactures because it reduces costs. Some of the notable benefits of strategic sourcing include:
Greater cost savings without squeezing suppliers – When the organizations succeeds in developing long-term collaboration with large scale suppliers it enable greater costs saving. Large scare operation results in greater efficiency benefiting all the parting while reducing costs significantly without hurting