Dion L. Sellers
MBA630: Operations Management
Darden faces the problem of controlling its complex network of vendors, spread over 40 countries. ‘The law of the sea’, poses legal barriers for Darden as only vessels form the country of sovereignty have the right to fish those waters. Another problem is the high level of dependence on its outsourced chain, as more than 75% of its expense is from sourcing activities (Heizer & Render, 2011). This entails challenges of supply chain vitality and uncertainty.
Darden Restaurants is a group company, owning popular and successful brands such as red lobster, longhorn steakhouse and olive garden. With an annual turnover of over 300 million meals, Darden has successfully leveraged its global supply chain to ensure high quality food to its customer base in US and Canada. Through subsidiaries, Darden owns and operates more than 1500 restaurants, employing a workforce of over 150,000.
Darden’s deployment of purchasing agents globally has allowed it to increase its presence throughout the supply chain. Its rigorous quality standards has allowed it screen out the high quality vendors, placing strict compliance benchmarks on sampling and inspection practices. Moreover, Darden tackles legal barriers through leveraging its complex network of strategic supplier partnerships.
Due to the global presence, Darden needs to employ a lean approach in it supply chain. This would entail a more active role in demand planning, focusing on the times it takes to receive sources form suppliers (Waters, 2010). Furthermore, Darden can resolve its supply chain problems with expansion of manufacturing capacity in home based operations. Another solution is to empower and integrate its global network, though conferences and events for purchasing agents.
I recommend that Darden increase sourcing operations in home country, whilst expanding its...