Operations Management For Dummies by Mary Ann Anderson MSE

Author:Mary Ann Anderson, MSE
Language: eng
Format: epub
Publisher: Wiley
Published: 2013-07-01T16:00:00+00:00

Illustration by Wiley, Composition Services Graphics

Figure 10-7: The restaurant supply chain.

In the restaurant business, supply chains no longer rely on multiple suppliers with specialty support. All-in-one restaurant supply companies have emerged to simplify the material management process for restaurants. This new Tier 1 supplier purchases core supplies from specialty suppliers (now Tier 2 suppliers) and delivers them in one shipment to the restaurant, as shown in Figure 10-8. Reducing the complexity of the supply chain eases the burden on restaurant management to keep ingredients and supplies in stock, and, because fewer trucks are making deliveries, this simplification decreases traffic congestion at the facility and the number of deliveries the restaurant must receive.

Another method for simplifying a supply chain, cross-docking, reduces a company’s inventory levels and the need for warehouse space. Cross-docking is a logistics network approach used to minimize warehousing costs and reduce inventory. This is a popular process for big retailers and grocery store chains.

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