Supply Chain Processes

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Please see response attached for best format, which is also presented below. I also attached an interesting new model (Mygrocer platform) for you to consider.

RESPONSE:

1. I need clarification as to how to compare the supply chain processes of the grocery and fast food industries. Give specific examples.

What is a Supply Chain? We define it as a network of facilities including:

· Material flow from suppliers and their "upstream" suppliers at all levels;
· Transformation of materials into semi-finished and finished products,
· Distribution of products to customers and their "downstream" customers at all levels http://www.supplychainonline.com/previews/SCM101/2.html

In general, a supply chain, logistics network, or supply network is a coordinated system of organizations, people, activities, information and resources involved in moving a product or service in physical or virtual manner from supplier to customer. Supply chain activities (aka value chains or life cycle processes) transform raw materials and components into a finished product that is delivered to the end customer. Supply chains link value chains (Nagurney, A. (2006). Supply Chain Network Economics: Dynamics of Prices, Flows, and Profits, Edward Elgar Publishing. Retrieved January 29, 2007, from http://en.wikipedia.org/wiki/Supply_chain#_note-0).

Often, the types of supply chains are described by length (e.g., direct or indirect). For the indirect supply chain, it is described in terms of width (intensive, selective, exclusive), and control. The grocery industry has both direct (e.g., Costco) and indirect supply chain processes, but the fast food supply are indirect supply chains only. http://classes.bus.oregonstate.edu/ba495/Materials/ch05.ppt

For example, the grocery supply chain is usually intensive, with many retailers of groceries. In contrast, fast food is usually exclusive or selective (width). Control often differs as many fast food outlets (not all, though) are franchised, which takes away some of the control away from the retailer (e.g., Wendy's). However see Example 1 below which recognized that there is some power within a franchised fast food outlet to make choices.

Let's look closer at the similarities and differences between the grocery and the fast food supply chain.

1. Supply chain processes of the Grocery Industry

Thus, the grocery industry needs people with a range of skills to work across demand planning, physical logistics, technology, and production and retail operations functions. The grocery industry is one of the most ...