Outsourcing as a Supply-Chain Strategy

Topics: Retailing, Restaurant, Management Pages: 2 (540 words) Published: July 31, 2012
The Darden Restaurant chain is responsible for serving over 300 million meals annually throughout the United States and Canada in over 1,700 restaurants. Three of the most popular casual dining restaurants are the Olive Garden, Long Horn Steakhouse, and Red Lobster; with over 180,000 employees it is the largest full-service restaurant company in the world (Darden, 2012). Darden has found means of outsourcing certain aspects of the business to optimize their profits, through the use of supply-chain management strategies.

On page 461 at the conclusion of the Outsourcing Offshore at Darden Video Case Study; in part 3 or Managing Operations Chapter 11, 4 Discussion Questions are posed. 1.What are some outsourcing opportunities in a restaurant?

A variety of opportunities to outsource exist in a corporation of this size; human resource divisions are often times given to third parties, recruitment in particular. Payroll and taxes could be outsourced. Cleaning services, including sending out laundry aprons towels etc. rugs are often sent out to be cleaned oppose to internally cleaning them. Cleaning the seafood and prepping for cooking such as filleting fish and de-veining shrimp. Maintaining websites, working on promotional marketing online and in the communities is another job that can be easily outsourced.

2.What supply-chain issues are unique to a firm sourcing from 35 countries? Utilizing sources from so many countries could compromise standard working procedures, which could potentially affect the quality of the product due to lack of inspections. When utilizing new suppliers there are issues with reliability and proper communication which could lead to the incorrect amount of inventory being delivered, under the ordered amount will cause customer satisfaction issues as they may run out of an item, over delivery will result in waste.

3.Examine how other firms or industries develop international supply chains as compared to Darden....
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