TBS908-Assignment 1 - External Supply Chain Analysis The Analysis of Subway Restaurant's External Supply Chain Thanakorn Sathitwitayakul EXECUTIVE

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External Supply Chain Analysis The Analysis of Subway Restaurant’s External Supply Chain
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Thanakorn Sathitwitayakul 4/4/2011
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EXECUTIVE SUMMARY Headquartered in Brisbane, Subway – Quick Service Restaurant chain, is operated with 1,254 stores throughout Australia. Subway primarily employs consistence quality strategy to its supply chain. Moreover exploitation strategy and low cost strategy are applied as secondary strategies respectively to supplier relationships and operation within its supply chain. These strategies contribute to the effectiveness and efficiency of the supply chain and it is critical to the company to maintain a competitive edge through supply chain. Effectiveness and efficiency of supply chain are investigated in customer, financial, internal business, and learning & innovative perspective. It turns out that Supply Chain operation is effective and efficient in entirely aspect. In term of common supply chain practices, several Supply Chain operation features reflects improvement of logistics system, leverage of supplier relationships, and investment of supply chain inefficiency as common practices. In addition, Subway relies on its suppliers, through integration relationships via collaborative supply chain and partnership via flexible supply chain, to continuously offer new products and services as well as consistence quality products to its customers. It is recommended that Subway should include tier 3 suppliers in online supply chain management systems and should maintain the collaborative supplier relationships. 3995276 iv
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Table of Contents 3995276 v
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1. INTRODUCTION Subway restaurant chain, where the fast-food services of submarine sandwiches are mainly offered, was firstly introduced in 1965 by Fred de Luca, an seventeen-year-old entrepreneur, and Dr. Peter Buck (Referenceforbusiness 2008). The American origin restaurant chain initially operates under Milford office in Connecticut. Moreover, the Subway franchises in Australia are administered by Subway Systems Australia Pty Ltd in Brisbane (Referenceforbusiness 2008; Subway 2011). This report focuses on External Supply Chain analysis of Subway Australia through which the importance of supply chain and supply chain strategies being employed by subway restaurant chain are pointed out. Explanation of supply chain operations and supplier relationships, which involve logistic and information systems are also carried out. Furthermore, this report assesses the effectiveness as well as the efficiency of supply chain, which leads to recommendations on supply chain operations improvement. In addition, this report focuses up to third tier suppliers in upstream supply chain. 2. SUPPLY CHAIN OF SUBWAY Figure 1: Upstream Supply Chain of Subway Australia Source: Created by author of this report. *: See Appendix table 1 for bidvest suppliers. The second tier supplier consists of Enodis link (cooking oven supplier), Pactiv’s PWP
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This note was uploaded on 06/07/2011 for the course TBS 908 taught by Professor Scott during the Three '10 term at University of Wollongong, Australia.

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TBS908-Assignment 1 - External Supply Chain Analysis The Analysis of Subway Restaurant's External Supply Chain Thanakorn Sathitwitayakul EXECUTIVE

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