Outsourcing Offshore at Darden Essay
Outsourcing Offshore at Darden
Darden Restaurants owns all of the Olive Garden and Red Lobster restaurants, which amounts to over 1,700 food establishments. Olive Garden specializes in serving Italian food and Red Lobster serves mainly seafood and fish. They actually own four other chains located throughout the United States, such as: The Capital Grille, Bahama Breeze, Longhorn Steakhouse, and Seasons 52 .To keep themselves successful the company needs to outsource work when the opportunity strikes to reduce their overall labor costs. Darden’s sources of seafood are from sustainable wild fisheries or aqua culture farms, harvested in ways that promote responsible fishing and help protect the surrounding ecosystem. All of Darden’s suppliers must adhere to their rigid food standards, which are typically stricter than the FDA, to continue doing business with them. Darden is one of the largest seafood purchasers. They pride themselves with the diversity of the employees and the company they purchase their supplies from.
There are many sources in which a restaurant, like Darden, can find the opportunity to outsource some labor, such as: accounting/finance, seafood catching and cleaning, internet marketing, transportation/logistics, legal processes, cleaning, and bulk food preparation into even portions.
There can be many supply-chain issues when working with 35 different countries. If there isn’t proper communication throughout the organization and their suppliers Darden could find they have too much or too little food to supply their establishments. If Darden fails to properly inspect areas of their establishments and their food they could begin to have quality issues throughout the organization. The different time zones they are working with could increase the chance of errors on arrival times of supplies. Darden may also run into problems with different cultures and work performance in all the different countries.
After examining the automobile industry’s supply chain and how it needs to adapt to a reaction strategy to meet all of their customer’s requirements. Ford Motor Company adopted the six sigma processes in 2011 to create a leaner supply chain I think Darden success comes from a differentiation strategy through the specifications of fresh food service. Darden achieves this by having many supply-chain strategies for perishable, low shelf life, foods with seasonality around the world are important for their success. Darden has developed four distinct supply chains: one for seafood; one for dairy/produce/other refrigerated products; the third supply-chain is for other food products, such as baking goods; the last supply-chain is for the restaurant supplies . Another impressive supply-chain is JCPenney’s on dress shirts which are mentioned on page 430. Their partnership with TAL Apparel Ltd. is impressive. TAL downloads Penney’s records on sales and decides how many dress shirts and in what sizes need to be produced that day and are shipped out the next day.
A person needs to acquire a fishing license in order to fish. In most countries you must be a citizen of that country in order to acquire such a license. Since Darden doesn’t have citizenship in all of the countries in which they purchase their seafood they need to hire natives of these countries in order to catch their fresh fish. Only flagged vessels from the surrounding country of that sea has a right to fish within 200 miles of that land . It is easier and more economical for Darden to outsource the catching of their fish/seafood. Darden also has set up warehoused within the area of all of their fish port suppliers to cut the costs on transportation. These warehouses store, separate, package, and inspect all of the seafood caught and sold to Darden.
Darden is a successful restaurant chain with six different establishments located all over the United States and Canada. Their most successful restaurants are Olive Garden and Red Lobster. Darden Corporation has created four separate supply-chains for the organization in order to create a well balanced, quality driven company. The four supply-chains are: 1.) fresh seafood, 2.) baking goods, 3.) dairy and other refrigerated products, and 4.) restaurant supplies. Darden has built warehouses near all of the ports in which they receive their seafood from. This cuts the cost of transportation and employees can inspect, clean, package, and store the seafood in these reputable warehouses . A lot of Darden Corporation’s success has been accredited to their quality and freshness of their food. The quality and freshness has a lot to do with their elaborate supply-chain. Everyone ion their supply-chain receive proper training and must follow Darden’s strict regulations, which are usually more stringent than the FDA .
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