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Assignment - Review the assigned article "Inside Chipotle's Contamination Crisis: Smugness and Happy Talk About Sustainability Aren't Working Anymore," from Bloomberg Businessweek. Research several other sources regarding Chipotle's food contamination crisis. Create a flowchart of the original supply chain and how Chipotle supplies each of the restaurant chains. Provide your own commentary. Create another flowchart that suggests a new way to supply the restaurant chains.
Answer - Inside Chipotle's Contamination Crisis
Review of Inside Chipotle's Contamination Crisis: Smugness and Happy Talk About Sustainability Aren't Working Anymore
The public health officials detected the huge E.coli O26 outbreak in late October 2015 in Oregon and Washington. After interviewing the ill people, the officials detected a higher percentage of illness in those states. They acknowledged that the illness is because of eating at different locations of Chipotle Mexican Grill. Approximately 55 individuals were infected due to the outbreak strain of E.coli O26 in 11 states (Berfield, 2015). For example, Chris Collins, a 32-year-old photographer and web-designer suffered from E.coli O26 after having a regular chicken bowl at Chipotle. At the time of the investigation, it was observed that a common meal ingredient or item served at Chipotle Mexican Grill is the major reason that resulted in this outbreak.
Supply chain flowchart of Chipotle's Mexican grill Incorporation
Suggested Supply chain flowchart for Chipotle's Mexican grill Incorporation
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Review of Red Lobster
Red Lobster Hospitality (LLC) is determined to be an American casual dining restaurant chain whose headquarters is located in Orlando, Florida. The firm operates its business all over the United States and globally in Japan, Mexico, UAE, Saudi Arabia, Qatar, Malaysia, Canada and Ecuador. The brand specializes in selling seafood that includes molluscs, crab, fish, shrimp and lobster along with pasta, steak and chicken (Wang, Gunasekaran, Ngai & Papadopoulos, 2016). The company strengthens a strong relationship with the suppliers who helps in developing innovative products and enhances supply chain efficiency. To receive a competitive advantage, the firm seeks to sell certain non-seafood items.
It is recommended that Red Lobster must handle the supply chain strategy with integrity. In order to enhance their supply chain, they are required to communicate with the shareholders and consumers openly. It is essential for the company to focus on maintaining a rigorous audit process, using the large centralized kitchen and high-resolution testing. It is strongly recommended that the company must implement risk mitigation strategies to enhance its supply chain network (Chang, Ellinger&Blackhurst, 2015). It is the responsibility of the company to acknowledge the traceability and visibility in the supply chain. Therefore, this will support the firm to have a highly complex supply chain.
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Supply chain flowchart of recommendations
Summary of the recommendations
The following recommendations have been provided as it will help Red Lobster to enhance its current supply chain strategies proficiently and successfully. The complexity of the supply chain will help the company to improve its supply chain visibility. The recommendations provided will be helpful for the firm to maintain quality by achieving low costs. The recommendations will also support the company to achieve a competitive advantage within the marketplace and avoid unforeseen issues in the supply chain. As a result, the firm will gain the ability to source seafood products to the customers.
Formal strategies used to reach the conclusions
The formal strategies that have been used are the adoption of a formal service-delivery model that helps in managing international business services. This strategy also helps companies to enhance their shared services and business operations (Dubey et al., 2017). The informal thought processes that have been used is a collaboration that helps in improving supply chain efficiencies and strengthen relationships with the clients.
The rationale for utilizing lean supply chain procedures
The lean supply chain procedures have been used as it helps the companies in procuring, manufacturing, warehousing and transporting. It may help the companies to manage their supply chain operations effectively without facing any challenges (Perez-Franco, Phadnis, Caplice&Sheffi, 2016). This strategy will also help the businesses to reduce the amount of waste and costs and provide safe products to consumers.
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