Traditional Adversarial relationship is a business relationship which is mostly based on prices in negotiations of open market and also in short-term.Within the final decade researches has shown that business relationship has ended up in a well-created sequence of imaginations from both the supplier and the buyers point of view.To be productive or efficient a company have to center its resources towards supervising or managing the process of supply chain.These has driven to to development of considerable improvements within relationship of buyer and supplier changing from big range of suppliers to few suppliers.
Considering s single sourcing they have advanced to an improved concept of “partnership sourcing” from traditional “adversarial relationship”.Price data is the only trade in an adversarial relationship within the company and supplier while trying to amplify individual’s profit in a short-term period.
In the three quotes system the buyer is required to notify or inform the supplier than he actually has different quotes from the supplier’s competitors.
This encourages the supplier the best bid possible for the goods and services to be provided.According to the senior VP Jim Lawrence It is difficult to apply the “three quotes”system to a single supply chain because this supplier feels he has gain trust of the buyer and there is no competition.From the different suppliers and closes up developing a health business traditional adversarial relationship for the buyer and the supplier.
Darden restaurant,being the owner of the famous known brands like LongHom Steakhouse and Olive Garden and also serving in excess of 300 million meals yearly needs exceptional supply chain.Darden Global Supply Chain consents of four supply chains which are evident and have their definitive way of contributing at Darden restaurant.
Smallware is the first supply chain which is a restaurant field,providing items like dishes,tableware,kitchenware and silverware.It makes a pledge purchase of these items with Darden grabbing legal right of ownership when they are transported at Darden Direct Distributors warehouse.This first supply chain makes use of the three-quote system as they do not buy these items in small quantities but prefer buying in bulk and those items come specifically from the smallware supply with the quality of them highly ensured for them to be transported to each restaurant such as Olive Garden,Bahama Breeze and Season 52 restaurants.Darden place orders once annually from the smallware industrial field.
Frozen,dry and canned food productsThe second supply chain at the Darden restaurant is the Frozen,dry and canned food products. This supply chain tends to use few suppliers as they need the stock on a regular basis to make sure that the stock is never depleted or low and the suppliers have advantages of the 11 contribution centers in North America which are supervised and managed by major U.S food distributors such as MBM,Maine and Sygma.These suppliers handle the supply chain in an economic way and ensures that the products would be transported or delivered in a proper manner.U.S major food distributors also help,plan and execute the shipment of products toward the Darden’s customers.
Fresh food(not frozen and not canned)
Fresh food is the third supply chain and it benefits for being in the business to business way with the Darden restaurant. they make use of few suppliers to make the process as successful as possible and Darden has the supply chain legally binding contract with the preselected group of commutative suppliers.A restaurant places and order whenever it is in need of the fresh food product with a period of given working days for the preselected group to deliver.There is an accomplished assurance that the goods will be delivered fresh to satisfy both the restaurant and the customers.
Darden’s worldwide seafood
Dadern’s worldwide seafood is the fourth supply chain.Darden benefits for receiving Seafood from suppliers in 35 countries across the world. By using this strategy, they ensure a stable inflow of inventory. Darden makes use of international, local and seasonal suppliers to supply their worldwide seafood line therefore the make use of few suppliers in terms of the supply chain.Darden on its own create and develop independent suppliers where good are examined carefully by Darden’s overseas representatives to ensure quality of the products.Examined products are to be transported in U.S among 16 distributors for speedy delivery to restaurants.With this Darden could guarantee quality products for their customers at a very negotiable prices with the group of independent suppliers.
Ownership /title should be expected to change in each of the companies four supply chains. For small ware, the title changes once it is at the distribution warehouse. For frozen, dry and canned foods as well as fresh foods, the ownership changes as soon as it in the restaurants. Concerning seafood, its supply chain would change ownership after being delivered to the U.S. territory. The supply chain is organised in a careful, strategic and unique manner.
The company carefully locates its distribution centres to provide quick delivery to each restaurant, timely response to customers’ needs and decrease in costs of inventory. This effective management style offers them with a great competitive advantage over their competitors that increase their responsiveness.
With the three quotes system it is always recommended to obtain most economical number of quotations to;take advantage of competitive environment,use the variation of terms for negotiation,to assure ethical and professional manner,to explore more options and alternatives for your demand and to expand your technical experience as Preferred Provider Organization(PPO) on the different ways of specs and Statement Of Work(SWO) presentations.
Advantages of three quotes system
First, the procurement lead-time is significantly reduced given that there’s no need to prepare solicitation documents, or to advertise requirements and the period for quotations submission is also equally reduced.Second, the number of quotations received is limited to the number of bidder’s quotations were requested from, so the selection process time is also reduced.Last, the procuring and/or requesting entities would usually have a pretty good idea of where and from whom the goods, services or works can be procured, so there’s a higher probability of response to the request for quotations.
Disadvantages of three quotes system
First, it ends itself to irregularities because the procuring entity decides which suppliers, contractors or service providers to send request for quotations to, and competition is very limited.Second, could be abused as a result of the breaking of requirements into smaller sizes in order to apply this method of procurement.Last, could easily lead to requesting quotes from a limited number of firms even if the goods, services or works are available from a greater number.
According to Vonderembse and White(2013),by having Few suppliers a company can benefit from the rising competition among those suppliers to meet the company’s demand for quality,transportation and costs.
Advantages of few suppliers
If one of the suppliers struggles to provide the goods or services or even collapses it is better to use another supplier.The long term partnerships arrangements are developed to enable the both organizations to work together for important integration of the supply chain and for development of techniques that can advance or improve quality and lower costs.
Disadvantages of few suppliers
The cost of changing or improving the suppliers is huge and this put both the buyer and the supplier to run the risk of becoming captives of the other, and the poor supplier performance is only one risk the buyer faces. The traditional supplier binding can also be eliminated by providing the poor quality and unreliability of goods and services requested.
Cite this essay
Supply Chain Management Assignment. (2019, Dec 20). Retrieved from https://studymoose.com/supply-chain-management-assignment-essay