Centralized supply chain – Food Lord
Publication date: 19 September 2019
Abstract
Learning outcomes
The learning outcomes are as follows: to understand the impact of external factors in supply chain operations planning; to understand the role of quantitative and qualitative data in supply chain decision-making especially in the restaurant industry; to assess the pros and cons of centralized and decentralized supply chain operations; and to evaluate different alternatives in supply chain planning, for best service level at minimum cost.
Case overview/synopsis
This case visualizes the planning of supply chain drivers and process improvement to enhance supply chain speed and flexibility. Asim Rizvi has recently joined as senior supply chain manager at Food Lord, a renowned chain of restaurants in Pakistan. As instructed by his CEO, Rizvi has to take a decision for centralization, or to continue the decentralization of supply chain operations at two of their highest selling branches. These two branches were located at a distance of 125 km from each other. The objective of supply chain operations’ consolidation was to minimize cost and further improve the service level. Rizvi was confused about the decision because any decision cannot be taken on the basis of cost and benefit analysis only. A 360-degree analysis and future requirements also play a vital role to decide about supply chain operations. The CEO was very excited to take this decision; that is why newly hired manager Rizvi was analyzing all the facts to reach a decision that would be best for their business. Centralized or decentralized supply chain decision was not easy because normally the business dynamics completely change due to unpredictable customer demand, unavailability of professional suppliers and unavailability of a strong information system, etc.
Complexity academic level
BBA and MBA
Supplementary materials
Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Subject code
CSS 9: Operations and Logistics.
Keywords
Acknowledgements
Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The authors may have disguised names; financial and other recognizable information to protect confidentiality.
Citation
Shaikh, A.R. and Qazi, A.A. (2019), "Centralized supply chain – Food Lord", , Vol. 9 No. 2. https://doi.org/10.1108/EEMCS-02-2019-0038
Publisher
:Emerald Publishing Limited
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