Operations Research

Case Study: Darden’s Global Supply Chains

1. What are the advantages of each of Darden’s four supply chains?

Answer: Darden has four important supply chains:

 The first is “smallware” for linens, dishes, tableware, kitchenware and silverware.
Those items come directly from their headquarters ensuring the highest quality
shipped to each restaurant. The advantage from this supply chain is that from a
single warehouse, all items are shipped via a common carrier (trucking
companies) to all the near places. They therefore diminish the shipping price of
the small items.
 The second supply chain is for frozen, dry and canned food products. Its
advantage is that it is handled economically by Darden distribution centers in
North America they are managed by major US foods distributors.

Darden has its supply chains classified into four different categories. First is the supply
chain called ‘smallware’ where linens, dishes, tableware, kitchenware and silverware
are stored in one warehouse (Darden Direct Distribution) located in Orlando, Florida in
which smallware items are shipped via trucking carrier. In this sense, having this kind of
supply chain would help Darden deliver the smallware items directly and easily to their
buyers/customers since they are using common carrier as the mode of transporting the
items.

The second supply chain has said to include frozen, dry and canned food products
which are handled by Darden’s 11 distribution centers located in North America. The
distribution centers of Darden is potentially managed because the major U.S. food
distributors is the one who manages it, therefore the products of Darden would really be
delivered properly to the buyers considering that U.S. major food distributors are the
one who monitor, assist, plan, and perform the shipment of products towards Darden’s
customers.

The third supply chain includes fresh foods like dairy products, produce and meat.
Darden has its preselected group of independent suppliers of the said products where
restaurants managers directly place orders. The chain is likely happen in Business to
Business model. A restaurant will place order to independent supplier of Darden.
Darden has supply chain agreement with that particular independent supplier. In this
system, there is a complete assurance that goods will be delivered fresh.

Fourth is the seafood supply chain. It is on contrast with the third supply chain because
Darden is the one who develops independent suppliers where goods are inspected by
Darden’s overseas representatives to ensure quality which products are to be shipped
in U.S among 16 distributors for quick delivery to the restaurants. With this Darden
could guarantee quality products to their customers.

2. What are the complications of having four supply chains?

Answer: Since four supply chain is hard to perform and has complex operations, the
possible complications of Darden for having four supply chains is that when there are
issues arise particularly problems in the operations, it will be hard for Darden to
determine where and how it starts because the supply chain is too wide and therefore it
will be hard also for them to address the said problem. It’ll become hard because lot of
third party distributors is involved in the operations. Darden would have a hard time
looking for the main root of the problem. For goods and services obtained from
resources outside the company, they need to determine the supply-chain strategy.