Supply Chain Management
Supply Chain Management has been defined as the organization of supply chain
activities, including purchasing of raw materials and components from suppliers,
distribution of parts and finished goods, and administration of the relationship with
customers, in order to maximize customer value and maximize competitive
advantage. Supply chain management also involves a coordinated effort by a group
of organizations to manage the supply chain from raw material to finished product or
service in the most efficient way possible.
All products or services involve operations and supply chain management to be
produced or delivered.
History
The Seventeen-Year-Old Entrepreneur
Back in 1965, Fred DeLuca set out to fulfill his dream of becoming a medical doctor. Searching for a
way to help pay for his education, a family friend suggested he open a submarine sandwich shop.
With a loan of $1,000, the friend—Dr. Peter Buck—offered to become Fred’s partner, and a business
relationship was forged that would change the landscape of the fast food industry.
The first store was opened in Bridgeport, Connecticut in August, 1965. Then, they set a goal of having
32 stores opened in 10 years. Fred soon learned the basics of running a business, as well as the
importance of serving a well-made, high quality product, providing excellent customer service,
keeping operating costs low and finding great locations. These early lessons continue to serve as the
foundation for successful SUBWAY® restaurants around the world.
SUBWAY®, the Franchise
By 1974, the duo owned and operated 16 submarine sandwich shops throughout Connecticut.
Realizing they would not reach their 32 store goal in time, they began franchising, launching the
SUBWAY® brand into a period of remarkable growth which continues to this day.
A Fresh Future
Today, the SUBWAY® brand is the world's largest submarine sandwich chain with more than 34,000
locations around the world. We’ve become the leading choice for people seeking quick, nutritious
meals that the whole family can enjoy. From the beginning, Fred has had a clear vision for the future
of the SUBWAY® brand. As we continue to grow, we are guided by his passion for delighting
customers by serving fresh, delicious, made-to-order sandwiches.
(Reference: http://www.subway.com/subwayroot/AboutSubway/history/subwayHistory.aspx)
Frequently Asked Questions
13. Why do I have to order my supplies from your vendor?
We require all franchisees to order food from an approved food distributor. This ensures that all
SUBWAY® restaurants have the best quality food while allowing maximum savings. SUBWAY has an
Independent Purchasing Cooperative (IPC). IPC is a franchisee-owned and operated purchasing
cooperative that negotiates the lowest costs for goods and services while maintaining quality,
standards and ensuring the best value for SUBWAY franchisees. Back to top
15. Can the SUBWAY® menu accommodate my special dietary needs?
Although the SUBWAY® brand tries to keep its menu the same worldwide so patrons can enjoy the
same great-tasting sandwiches no matter where they are, it is very conscious of the different dietary
needs of consumers and takes steps to adapt its menu where appropriate. For instance, in India,
where the population is largely Hindu and does not eat beef or Muslim and does not eat pork, these
ingredients are substituted with chicken, lamb or turkey. Because SUBWAY® sandwiches are fresh
and made to order, toppings and ingredients can in most cases be adapted for customers with
special dietary needs. Back to top
(Reference: http://www.subway.com/subwayroot/Development/faqs/index.aspx)
About IPC
IPC is an independent SUBWAY franchisee-owned and operated purchasing cooperative. IPC
negotiates the lowest costs for purchased goods and services, while improving quality, enhancing
competitiveness and ensuring the best value to SUBWAY® members and their customers.
Moreover, IPC is committed to delivering returns to its members year after year. By organizing as a
cooperative, the business initiatives are set by the owner members and is benchmarked by the
active participation of an elected Board of Directors.
Working under the direction of the franchisee Board of Directors, IPC’ s Management Team carefully
selects strong trading partners and manages the risks inherent to the costing and distribution of
products and services in the food service industry. For more information about IPC's goals and
objectives, please click here.
(Reference: https://www.ipcoop.com/en-us/1/Page.aspx?p=14)
IPC's Goals and Objectives
IPC is responsible for procuring all of the SUBWAY food, packaging, equipment and services for the
US and Canada through negotiating price, supply, and distribution terms. IPC's purchasing strategy is
inclusive of minority suppliers, wherever possible, in all aspects of the supply chain.
In addition to negotiating the items themselves, IPC enters into contracts at all levels of the supply
chain to bring cost efficiencies to SUBWAY franchisees. Rather than several companies purchasing
smaller quantities, IPC sets up one large master contract which results in a lower cost end product.
IPC looks at all supply chain opportunities that will result in better operations, savings or quality for
SUBWAY franchisees. This is a continuous process with IPC often receiving requests from its
members to evaluate taking on new functions. After studying the potential opportunity, the IPC
Board of Directors decides if the investment is worth the return to IPC's franchise members.
(Reference: https://www.ipcoop.com/en-us/1/Page.aspx?p=260)
Supply chain risk management, peter finch
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