A large restaurant franchise company owns and manages multiple supply chains for its several franchises. The multiple supply chains means that the company handles millions of dollars of inventory for the various franchises throughout the United States. Supply disruptions are costly to all stakeholders of the company.
Discuss the three alternative options that the company reviewed when its primary distributor filed for bankruptcy, disrupting the supply chain. Discuss the advantages and disadvantages of each alternative option that the company reviewed.
- Develop a food distribution network (owned and operated by the company itself)
- Work with third-party logistics providers
- Work with a traditional food industry service distributor in a new model
Discuss the advantages and disadvantages of each of the distribution models. Explain why the models would work for one company and why it may not be ideal of another.