A major transformation in business management is that organizations are trying to optimize every aspect of business. There has been a keen focus into every aspect of business which can give the organization a price or quality edge over its competitors. Effective Supply chain management (SCM) is capable of both the above mentioned advantages. If we look into the various components of SCM and analyze their significance in the context of the above we find that they are quite significant and capable of achieving price and quality edge over competitors.
In this research the focus will be to study various factors influencing the supply chain management in fast food industry of UK by doing a study between Mc Donald and Burger King the aspects associated to price quality and customer satisfaction will be covered through this research. The fast food industry has witnessed huge transformations in the recent past; the affect of these transformations on the supply chain management is also discussed in this research.
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The title of the dissertation will be:
"By managing Supply chain, UK Retail food industry achieving a competitive edge - A Study between Mc Donald and Burger King"
It have been seen that supply chain management is the important part of strategy in almost all the major business and corporation around the world. And most of the companies have the competitive edge through the effective supply chain management. As it have been seen that these days cost and quality are not the only few diameters customers evaluate on, but the service and the effective supply chain management are also in their focus (The Marshall-Teichert Group, 2010)
The term Supply Chain Management (SCM) represent the planning and management of the events that involve procurement, logistic management, sourcing and conversion (CSCMP, 2011) keeping the focus on the communication and collaboration with the channel partners (that can be suppliers, retailers, intermediaries, third party provider and customers), the soul of SCM is the integration of supply and demand, within and across the companies (Gyan, 2010)
Supply chain management is the management of entire materials from suppliers (Suppliers of raw materials to the organization) to retailers and distributors to the customers so the travelling of raw material from the company to the end user is all the part of supply chain management. However it have been seen that few companies have large supply chain and few have small, that all depends on the nature of business and the size of the organization, above all this is the integrated part of the strategy that how long a supply chain should be and what is effective for the company both in terms of time and cost. (Haroon, 2010)
It is very important for the organizations and industries to have proper need assessment in terms of supply chain management and identify their own needs, proper research for the supply chain issues is required in terms of information flow through the entire supply chain and who can get what information and on what time (Ira and Talalayevsky, 2004) the other most important issue for the effective chain management is inventory or warehouse management, how much inventory to hold and for what time period and most important for all the domains is operation management or handling customers and their queries, as ultimately the success factor of the business is the sales and customers satisfaction. (Kathy, 2010)
Supply chain is not only about the proper strategy plan and the research for every domain of supply but also there are various disciplines involved within supply chain management system like the supplier relations management, inventory management, distribution system, retail management, reverse supply chain management. It has been observed that action in one discipline can influence the performance of the whole chain and similarly the performance of the organization. ( Peters 1982; Riddalls 2002) so the study is important to see and evaluate that how to design a effective SCM strategy and what are the keep drivers and factors to it.
There is a vast difference between the supply chain of the manufacturing industry and the service sector, (Wu, 2009) as in the manufacturing the finished good should be of good quality and cheaper (in term of cost and time) where as when it come to service sector, it is the customer who should be satisfied. Therefore in each of the case different disciplines and different type of research is required for the supply chain management. (Arlbjørn,Â 2000), the success of the Supply chain management affirmed that how effectively the company is controlling all three basic elements; Cost, Quality and Service.
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Around a decade ago it have been seen that the importance for the supply chain management is only in the manufacturing industry, where as the statistics of 2004 shows that the service industry is contributing a lot in the economy and alone private-service sectors accounted for 70% of the GDP (Strassner and Howells 2005) showing that service sector is very important for the economy growth. It have been seen that the one of the most critical success factor of the service sector is the effective supply chain management, as they are directly linked to the customers (Donovan, 2000). So the process of supply chain management of the service sectors is comparatively more focused on the customer satisfaction than in manufacturing sector as the delivery of the product on time and with good quality is the most important.
The fast food industry is one of the most competitive industries throughout the world (Scrossman, 2007). In the fast food industry which is part of service sector of the economy the competition between the providers is depend majorly price, quality and service, which are all the core aspects of Supply Chain Management although it have been seen that individuals have their own specification in terms of quality, whereas it have been seen that for most of the people service is important rather price. Hence there is immense pressure on all the organizations in the fast food industry (Olotu ,Â 2011) to keep the three aspects not only studied and managed but also above to all make each of the customer satisfied.
As fast food industry is one of the most emerged industries in the recent past, the supply chain has seen huge transformations in this industry. The industry is still emerging so as the transformations in the supply chain management of this industry. Hence this study helps the learner identify and understand the factors driving change and the factors influencing the supply chain performance.
It have been seen that the brand war is always going on between the top brands of retail fast food industry (Roy, 2008) and many unbranded products are also making their spaces in such a concentrated market, that shows that there is still some gap exist between demand and supply, whereas as matter of facts the fast food retail industry (especially of UK) considered to have the good SCM strategies. Through this dissertation we will be focused on the two internationally accepted brands of UK fast food industry to see how effectively they are managing their SCM issues and how the effectiveness in SCM can give a competitive edge to them.
Rationale for the study
The study is significant in its own way, as it have been seen that the importance of supply chain management is much more specially in the retail sectors. There are many researches done before on the importance of supply chain management along with that many papers talk about the indivisual profile of different retail brands and how effectively they are managing their functions. This disertation is important in this regard as in this the researcher is not only explaining the benefit of supply chain management but also relating it with the retail food industry, following are the some of the rationale given below for the study
The dissertation is important in understanding the process of supply chain management and different components associated in this supply chain management process.
The study will give the essence of the UK retail sector, specially the retail food industry and how this sector is contributing to the economy.
In this dissertation the researcher is try to analyse different brands of the UK food industry by focusing on the two majors fast food brands, also explaining their startegies and other companys' profile, so give a clear picture of their sucess.
The research is important as through it the researcher is explaining that how sucessfull retail brands use supply chain management system for the competency over its competitors.
Aims and Objective of the research
The main objective of the dissertation is to analyse that how the top fast food retail brands are effectively using their supply chain management as competitive edge. Following are the some of the main aims for the dissertation on Supply chain management on UK Retail food industry gets the competitive advantage by doing a study between Mc Donald and Burger King;
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The study will gave a view not only about the supply chain management (SCM) in UK Food retail industry and different componets of it. But also how the effective SCM is affecting the brand equity and customers' satisfaction.
To understand the difference between SCM practices in fast food industry and in other industries (manufacturing & Service sector) and analyze the service level impact in supply chain management.
Identify significance of various parties in the supply chain on the performance of the supply chain
The study will also discuss the importance of the retail food industry in UK's economy, and how supply chain management is important ingredient of it.
The study is aimed in a way that it can define the importance of the effective supply chain management in the brand sucess of two multinational fast food brands (i.e. Burger King and Mc Donald.
Identify significance of various parties in the supply chain on the performance of the supply chain
This research will not only try to present the study associated with the title of the research but will also try to answer the questions mentioned below;
What is the core meaning of supply chain and what are the amojr components of supply chain management?
What is the significance of Supply Chain Management in fast food industry?
How significant is information sharing to keep the supply chain effective?
What factors influence / drive supply chain management in fast food industry of UK?
How is demand forecast & supply managed accurately, through the effective management of supply chain management?
What is the impact of supply chain management on overall performance of McDonald and Burger Kind (BK)?
Does the effective supply chain management is giving a competitive edge to any of the brand?
Scope and limitation of the study
The dissertation on the effectiveness of the supply chain management and how this tool is the competitive edge for the global brands like Mc Donalds and Burger King, is limited to two of the well known international fast food brands of UK only (i.e. Mc Donalds and Burger King) are mostly the service industry so the dissertation will give the picture about them and it is a service base industry, there may be few differences in the supply chain then the supply chain of other industries.
The scope of the study is limited to the retail sector of the UK only and more specifically the food retail sector of UK, thus geographically the researh is limited to UK only. There can be many other factors for the sucess of the retail food brand but in this dissertation our research is focusing on the supply chain management and the isuses reated to it only. So the dissertation is limited in a way.
Significance of the study
The study is very useful for understanding the supply chain management and its vital role in the success of UK food industry. It have been seen that all the firms and organization understand the importance of the Supply chain management but only few of them handle this effectively, the dissertation is important to show a clear picture of the importance of SCM and how the retail fast food brands can have a competitive edge over it competitors by effective supply chain management.
The most important significance of the study, is the focus on the internationally accepted Fast food brand which are direct competitor of each other so have a clear picture that how can any of the brand can use the SCM (Supply Chain Management) as their benchmark and how important the effective supply chain management is for the service industry of a developing country like UK.
Structure of dissertation
The study is divided into four further chapters, besides then introduction of the about the dissertation by explaining the research background, along with the aims, scope and objective for the research on "By managing Supply chain, UK Retail food industry achieving a competitive edge - A Study between Mc Donald and Burger King". Chapter two (2) will present a substantial body of literature, about the supply chain management the factors affecting supply chain management. The literature review also covers the different domains of SCM, and the strategies to plan an effective supply chain management to the fast food retail industry. Chapter two will further extended to explain the company profile of two major fast food retailers of UK, McDonald and Burger King.
In chapter three (3) research methodologies used in this dissertation are given to describe the research plan and the research strategies. Then the research will advance to chapter four (4) there the researcher will explain the data analysis along with the findings of the primary data collected for this research. The dissertation will end on chapter five (5) there the researcher will explain the conclusion and findings of the research along with giving the recommendations for the effective supply chain management in the retail industry of UK and how the fast food retailers can gain competitive advantage through it.