SUPPLY CHAIN MANAGEMENT

Business - Supply Chain Management



Business - Supply Chain Management

Introduction

The catering industry is affected by changes in consumer spending. Consumption levels are partly determined by changes in interest and tax rates and the level of employment. Higher consumer spending causes people to eat out more, boosting demand for food service contractors.  This paper presents an analysis of Future Focus Foods (F3) should they go about building and developing their supply chain in support of their reputation and their need to offer a full service within the next six months. Below mentioned three factors need to be addressed by the F3 for effectively managing its supply chain in coming six months.

First of all, F3 should focus on providing goods in diverse locations and must be able to cater for functions at varying venues. Secondly, it should focus on having access to skilled and flexible workforce. This involves having access to a trained workforce, which is vital to ensure good and quality staff. Thirdly, F3 must ensure that it has guaranteed supply of raw materials which it can obtain by outsourcing the operations. Development of links with suppliers and equipment hirers or renters will enable the company to manage its reputation in next months.

Purchase Orders and Outsourcing

Catering to sports spectators, mainly for Olympics event whether at major events or during regular seasons, is a significant source of demand for F3 business operations. The more F3 relies on stock for catering services management, the more difficult it will be to accommodate design changes. That's why the JIT philosophy is now being integrated into the overall business strategy worldwide, changing the nature of manufacturing and business dramatically (Burt et al., 2003). It has expanded beyond the walls of a factory or shop to include the capabilities, skills, and cooperation of its suppliers and the insights of its customers (Bowersox et al., 2007). 

Inventory Management and Scheduling

As part of the collaboration with their suppliers, many companies are adopting the practice of vendor-managed inventories in which the company provides warehouse space to its suppliers for storing their components, to be delivered to the company as demand arises (demand pull basis) (Frazelle et al., 2002). Instead of ordering once daily, some companies order once in every planning period (maybe a shift or half-a-shift). For the purpose of this discussion, a day will be used as the planning period. In this mode of operation, it is ...