HNHM320 Hospitality Supply Chain Management: Burger King Analysis

This report provides a comprehensive analysis of Burger King's supply chain management, focusing on its effectiveness and efficiency within the hospitality sector. It begins by demonstrating the application of supply chain principles across various stages, including resourcing, product design, development, logistics, and distribution. The report evaluates the effectiveness of Burger King's supply chain from the perspectives of customers, suppliers, distributors, and retailers, highlighting the importance of customer relationship management, new product development, risk management, and sales & operations planning. It also critically evaluates the significance of physical, information, and financial management within the supply chain, exploring cross-functional and integrated approaches to supply chain management and their interrelationships with other functional areas. The analysis includes recommendations for improving supply chain interrelationships and addresses the challenges and issues within Burger King's supply chain strategy, offering suggestions for relevant support systems and documentation to maintain process efficiency. This report is structured into two assessments, each with its own introduction and conclusion, providing a thorough understanding of Burger King's supply chain dynamics.

Hospitality Supply Chain
Management

TABLE OF CONTENT
ASSESSMENT 1.............................................................................................................................3
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................4
Demonstration of supply chain principles applicable for stage of resourcing , service or
product design and also the development, logistics and distribution...........................................4
Evaluation of important effective SCM from the perspective of customers, suppliers,
distribution and retailers..............................................................................................................5
Customers :..................................................................................................................................5
Evaluation of supply chain concepts for improving efficiency and effectiveness of supply
chain management of Burger King..............................................................................................6
Critical evaluation for the importance physical, information and financial management within
the supply chain...........................................................................................................................6
Exploration of cross-functional and integrate approach of SCM for the other functional areas. 7
Interrelationship between supply chain and other functional areas.............................................8
Recommendations for improving supply chain interrelationships with other functional areas of
Burger King ................................................................................................................................9
CONCLUSION..............................................................................................................................10
ASSESSMENT 2...........................................................................................................................11
INTRODUCTION.........................................................................................................................11
Evaluation of Burger Kings supply chain strategy along with its issues and challenges..........11
Recommendations for improving, identifying relevant support systems and documentation for
maintaining the process..............................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

ASSESSMENT 1
INTRODUCTION
Supply chain management in hospitality organization focuses on the management of the
supply chain activities for helping the customers take advantage of the ways in which the
sustainable competitive advantages. In this project the chosen company is Burger king which is
American Multinational chain of hamburgers fast food restaurant. This project provides a
demonstration of supply chain concepts that are applicable throughout the stages of resourcing
designing and developing logistics. This project will also evaluate the effectiveness of the SCM
from different perspective. In this project evaluation of the effectiveness of the supply chain
management will be made. This project will also examine the interrelationship between the
supply chain and other areas of hospitality organization. It will also explore the cross functional
and integrated approach of SCM with the functional areas of the hospitality organization.

MAIN BODY
Demonstration of supply chain principles applicable for stage of resourcing , service or product
design and also the development, logistics and distribution
The principles of the supply chain is applicable for SCM management concept of Burger
King.
 Adaptation of the supply chain on the basis of the customers segments needs.
 Customization of the logistics network which helps the business in each segments.
 Alignment of the supply chain with the demand such that the stakeholders are benefited.
 Differentiation of the products with the customers choice and standardization of SKUs is
to deliver the different regions that are meeting different regulations.
 Outsourcing of strategical practices during core competencies for in house practices of
the organization.
 Development of the information for supporting multi-level decision-making for
collaborating them with the business process.
 Adaptation of the financial and service metrics with time driven activity based on the
costing methods which determines profitability from the customers driven values (Saberi
and et.al., 2019).
These principles of the Supply chain align with the Burger King supply chain in the
following ways,
Stages of resourcing :
In the stages of resourcing in which Burger King has to go through the recruitment
process it tries to hire the employees which can fit directly with supply chain management of the
organization. Attraction of new employees allow the business in the development of their
workforce which helps in supporting the business with customer oriented practices.
Product Design and Development :
The supply chain of Burger king allows it to provide the company a suggestion of the
name that helps the business in improving the quality of burgers as it expands. There is not
changes in the recipe however through minor changes it is able to develop its products.
Logistics and Distribution :
The primary distributor of this Burger King is McLane Food service which supply
grocery and food services supply chain solutions for better convenience a store (Ben-Daya,

Hassini and Bahroun, 2019). As this organization has global supply chain its success has been
due to the adequacy of the supply chain at all the times which also involves home delivery and
restaurant services.
Evaluation of important effective SCM from the perspective of customers, suppliers, distribution
and retailers
Customers :
For the customers the supply chain management is considered to be very important
because of the following reason,
 The customers have expectations of the correct quality, assortment and quantity of the
product that is delivered to them.
 Supply chain management helps the organization provide the products to the customers at
the right location.
 Customers time is very important for them and supply chain management is the process
which brings punctuality to the production.
Suppliers :
The suppliers are considered to be dependent on the supply chain management for
deigning the network which would help the products of the suppliers to reach the customers.
Efficiency in the supply chain enables the firm to be more competitive in the market and is
considered to approach the business involving making each computer based specific order
directed to the customers. Suppliers also depend on the supply chain management for assembling
the plants for avoiding the material shortage which would be reason for the shutdown of
production.
Retailers :
Retailers are considered to focus on the supply chain management of the as it has the
potential of providing the supplying the customers with an increase in profit. This is due to the
fact that the retailers depend on the supply chain of the organization to work at the least cost as
possible. The customers service goals are also met by the retailers with the help of the supply
chain management due to which they are very important (Tiwari, Wee and Daryanto, 2018).
SCM helps the retailer with delivering the expensive products quickly so that the holding costs
can be avoided in the inventories for a longer than necessary.

Evaluation of supply chain concepts for improving efficiency and effectiveness of supply chain
management of Burger King
The efficiency of the supply chain management of Burger King is effected due to the
following SCM concepts,
Customers Relationship Management :
This is the concept which refers to providing ongoing process of providing services for
the customers and collection of data about their likes and purchases. Following the CRM helps
Burger King to understand the customers and their preferences for providing better services in
the supply chain of the product. Lack of efficiency in the customer relationship management can
lead to poor impacts created in customers satisfaction which is a negative for SCM of Burger
King.
New Product Development :
For Burger King Creation of new product is very essential for the business to bring
innovation and be anticipative of the customers demand. Supply chain management plays a vital
role in the new product development of the Burger King thus, having efficiency in this process
leads to success in the innovation. Some time's innovation can go opposite to the plans which can
have negative impact on bot the results and the Supply chain management of the organization.
Risk management :
Management of the risk in Burger King revolves around the practices of the supply chain.
It can be said that any delay in the supply chain management towards delivering the raw
materials can impact the business of the organization (Pettit, Croxton and Fiksel, 2019). Thus,
efficiency in the Supply chain is very crucial for the better Risk management of the organization.
Sales & Operations Planning :
These concepts are dependent on the supply chain of the organization to be efficient and
accurate. This is due to the fact that the marketing department of Burger King would focus on the
products which it has in the inventory before making efforts of increasing its sale. Thus, the
collaboration of these two operations is very essential. This is the reason why sales and
operations planning needs the supply chain management to be efficient and effective.
Critical evaluation for the importance physical, information and financial management within the
supply chain
Burger King has importance of the following in the Supply Chain management,

Physical :
The physical environment of Burger King does not just include the interior designs, logo,
drink cups, napkins etc. It includes the restaurants, delivering vehicles and other essential
equipments and tools which are handy for the supply chain of the organization (Sri, 2020).
Despite having such a strong brand image this organization is does not have proper equipments
for the delivering services in comparison to its competitors. This is the reason why this
organization can be said to be lacking in terms of the areas through which the business can
develop its operations. However, having so many restaurants helps the supply chain to position
itself perfectly for delivering.
Information :
Information is the key to the success of every process in the modern era. It is crucial for
the supply chain performance because it provides the businesses a foundation of the supply chain
process which is helpful for execution of the transactions that makes the managers make the
decisions. Supply chain management can make the business more efficient and effective if it is
able to increase its production. Wrong information is very damaging for the supply chain
management as it will not be able to be effective in the organization (Tseng and et.al., 2019).
The wants of the customers is the Information which is crucial for the supply chain which can
effect the decision related to which products are needed to be delivered which is not.
Financial Management :
The focus of the supply chain management of this organization has always been on both
the materials and the flow of the information. This is essential for the cost reduction which can
be reached through efficiency that is the optimization of the financial slow in the supply chain. It
is said to b the savings which is due to the minimized stock levels that can easily be offset by the
costs of the finances which are remaining in the inventory. In Burger King the best way of
buying better credit rating is considered to be the effective for the retailer and can help the
business in accessing the capital to be lower than the cost. The supply chain of the finances
provides the business a short term credit for the optimization of the working capital for both the
buyers and sellers.
Exploration of cross-functional and integrate approach of SCM for the other functional areas
The concept of the cross functional integration is considered to be the central of supply
chain practice. It is the important driver of supply chain performance for Burger King (Durach

Kembro and Wieland, 2017). The supply chain researchers have been largely focused on the
information management systems and cross functional performance metrics which is primary
mechanism through which organization can integrate their supply chain functions. The integrated
information systems and the cross functional KPI's represent the cross functional integration at
the technical core of the primary structures. STS is able to recognize the intension of the produce
of the task oriented behaviour.
As the cross functional team is referred to that group of individuals which are from the
different functional areas of the organization. They are able to being clear worthwhile,
compelling for being able to reach without the teams leverage levels. Teaming up of these
members from different functional areas allows the organizational resources to be utilized with
an expertise of team members. This is the way in which the cross-functional integration approach
of Supply chain management of Burger King is able to deal with the sourcing, commodities,
quality and new product services development. The cross functional teams are widely used for
the solving different challenges faced by the organization in order to hire new position that is
able to decide a pricing model for the new product. It can be said as the high performance of the
cross functional team which is recognized for its discrepancy between the procurement and
supply chain point of view.
With the help of the cross functional supply chain other functional areas of the
organization is effected. This is because it helps different team for being focused on to the
corporate goals of the organization. It can be said as the identification of the ways in which the
effectiveness in the market of the enterprise executive is helpful for increasing their sales
performance. It helps the marketing, sales, product and customers success representatives which
can work together for the assigned accounts which are provided (Ardito and et.al., 2018). Cross
functional organization helps in the development of promotion innovation and also conversation
of the product's usage data and also other sources of customers information across the company.
Interrelationship between supply chain and other functional areas
There are different functional areas which are interrelated with the supply chain of the
Burger King,
Sales :
Sales is that functional area which is interrelated with the supply chain. The transactions
cost analysis theory explains how the sales is related to the supply chain management. This

theory is on the basis of the transactions costs which is incurred during the supplies. These are
the costs which have the potential of impacting the sale price of the organization. This is how the
supply chain impacts the sales function of Burger King.
Purchase :
It is the process which is considered to be very essential for goods in order to achieve the
requirements that are is essential for the extensive infrastructure which requires the need of those
goods that are provided by the supply chain management of the organization. For the relationship
between the purchase and the supply chain can be explained with the help of materials logistics
management theory (MLM). This theory can be considered as the design of the mechanism
which is helpful for the ensuring the level of the inventory to be controlled with the help of
supply chain management and purchase.
Manufacturing :
The manufacturing of the organization which is considered to be the facilitation the
transfer and transformation of raw materials into the finished products (Xu and et.al., 2020). The
manufacturing transports and distribution of the facilities is essential for the development of the
products of the organization. In this relationship the Agency theory has shown viability which
explains the relationship between the relevant polices that can be adopted through minimization
of the costs and increase of revenue.
Marketing :
Marketing is the recognition of which is required by the customers, SCM is helpful for
the delivering of the customers needs which is considered to be broader for the essence that is
related to the relationship between the SCM and marketing which helps in facing the value of the
business. This is the theory which is based on the dependent on the various strategic theories
which can be taken by the management for the ensuring the right decision of the supply chain.
Recommendations for improving supply chain interrelationships with other functional areas of
Burger King
Burger king can bring efficiency to their functional areas such as, sales, marketing,
purchase and manufacturing through creating better relationship with the supply chain of the
organization. Strong relationship can be developed with the help of better communication that
allows the business in the management of the organizational practices (Nakasumi, 2017). This
can be considered to be the practices which allows the business to grow in certain specific

functional areas. It can be said that sales of the organization which is dependent on the supply of
the products can be improved if there is better communication between SCM and the sales team
of the organization. It can also bring purchase efficiency so that the SCM can reduce the cost of
holding the goods in transit. Marketing of the goods which are on the way as per the supply
chain management can be said as the best way of developing organizational practices.
CONCLUSION
With the help of this project it can be concluded that the supply chain management of
Burger King is very efficient in the management of the operational practices which has allowed
the business in the development of the organizational operations. This project was able to
demonstrate the concepts and principles for the services, product development, logistics and
distribution of the organization. This project was also able to critically evaluate the integration of
the supply chain concepts. In this project the cross-functional and integrated approach of SCM
and their relations with the different functional areas of the business has been successive. This
project also explained the relationship between the SCM and different functional areas in the
organization.

ASSESSMENT 2
INTRODUCTION
Supply chain management (SCM) is the combination of the analytical thinking which is
the practical steps goals which is helpful for the management of the flows of goods and services
that impact the supplies of raw materials which are essential for the final product's use by
consumers. For this project Burger King which is American fast food restaurant has been chosen.
This project explains the procurement and supply chain strategy related to the issues and
challenges of the organization. It will also provide recommendations for improving, identifying
support systems for documentation for maintaining process.
Evaluation of Burger Kings supply chain strategy along with its issues and challenges
Supply chain management strategy is the involvement of movement of products and
services from suppliers for the distribution. It also involves the flow of information and products
between the supply chain stages for the maximization of profitability (Esmaeilian and et.al.,
2020). It is the functions which involves SCM that is the procurement of raw materials, product
development, marketing, operations distribution, finance and the customers services. The
objective of the supply chain Management of Burger King is towards increasing the overall
value. It can be said that the difference between the total revenue generated from the customers
and the overall supply chain costs.
Burger King's strategy is considered to be the including the following involvements,
 Deciding on the supply chain structure is important for the Burger King as it helps the
business with collaboration in the supply chain performance.
 Analysation of a selected location can be considered to be providing the facilities needed
for the business in the supply chain.
 Decision-making of the supply chain is considered to be better with the help of supply
chain which can be stored with the help of organizational management (Sodhi and Tang,
2021).
 Burger Kings is considered to have better transportation in order to improve the supply
chain practices which involve the collection of information and also the source of the
business.

Following are the challenges and issues which are faced by Burger King in the Supply
Chain management,
Increased costs due to supply chain :
The profit margin of the food products of Burger King is increased due to the costs which
creeps up through the supply chain network. These increase in the costs come from the areas in
which there is a lack visibility of the organization. It can be said as the accountability issue
which results in the rise in the operational expenses.
Supply Chain Complexity Due to multiple Channels to market :
As there are multiple channels through which the customers of Burger King get the
services of the company. The underlying of supply chain needs to adapt to the supply chain
management which is considered to be better for the development of variations on the supply
chain process (Lamba and Singh, 2017). Online delivery through other online retailers creates
complexity in the supply chain process.
Consumer demands driving need for improved quality, speed and services :
Consumers are seen to have more choices as the food industry is very competitive. This is
the reason they desire more quality, speed and services from Burger King and their products.
Increasing of these factors can automatically increase the price of the food products of this
company. Thus, meeting the consumer requirements is important but it is an issue for the Burger
King.
Involvement of risk in SCM creates pressure :
Having an international business model creates a global complexity for Burger King
which impacts the environmental changes, economic pressure which creates trade disputes for all
the pressure which is put on the supply chain. For different international areas the business has to
face problems that are considered to be exponential towards the complexity of upstream and
downstream process. Regulations of the compliance and quality management demands a strong
agreement of contracts which can control the supply chain organization.
Supply chain volatility impacts :
It creates volatility and complexity which is considered to be very important and specific
point of the supply chain that impacts the ripple throughout the entire infrastructure. The
management of the supply chain needs to deal with the issues that can prompt before the creation
of delay, backlogs, bottlenecks and other issues (Suryanto, Haseeb and Hartani, 2018). There can