Supply Chain Management and CSR Metrics: Punjabi by Nature Restaurant

This report examines the supply chain management and logistics of the Punjabi by Nature restaurant, focusing on sourcing strategies, CSR, and non-CSR metrics. It analyzes the restaurant's procurement of raw materials, including vegetables, dairy products, electrical appliances, and furniture, and evaluates their environmental impact. The report proposes both CSR and non-CSR metrics, such as direct sourcing from local farmers and the implementation of POS software, assessing their positive and negative impacts on the business. It also introduces modifications to these metrics to enhance environmental sustainability, such as switching to organic suppliers and using non-CFC appliances. The report concludes with a discussion of the factors influencing decision-making, including budget constraints and employee technical skills, and provides recommendations for improving the restaurant's supply chain practices to achieve cost efficiency, customer satisfaction, and environmental responsibility.

SUPPLY CHAIN MANAGEMENT AND LOGISTICS

Contents
Introduction................................................................................................................................2
Organisational Background........................................................................................................2
Organisations products and services..........................................................................................2
Sourcing overview.....................................................................................................................3
Decision Factors.........................................................................................................................7
Non-CSR metric student 1.........................................................................................................8
Non CSR metrics student 2........................................................................................................9
CSR metrics for student 1........................................................................................................11
CSR metric for student 2..........................................................................................................12
Conclusion................................................................................................................................13
Reference List..........................................................................................................................14

Introduction
In this report a restaurant called ‘Punjabi by nature’ has been taken as an example. The
activities of the restaurant regarding procurement of its raw materials are being discussed
along with its impact on the environment. This report is also going to discuss regarding
suggested CSR and non CSR metrics and their positive and negative impact on the business.
This report is also going to introduce modification on the CSR and non CSR metrics to
improvise on the previous suggestions and also discuss the positive and negative aspects of
recommendations made regarding the changes on CSR and non CSR activities to become
more environmentally sustainable.
Organisational Background
Punjabi by nature is a restaurant located in Noida India. There are two main objectives of the
business one is to provide prompt services and products that are healthy for its customers and
two is to obtain cost efficiency in its services. The chief problem faced by the company is the
quality of the products that are received by the company and also the price of the products.
The suppliers of the company are providing the company with products that are unhealthy in
nature and it is also very expensive which ends up in increasing the menu price of the
products.
Organisations products and services
The main function of the restaurant Punjabi by nature is to serve Punjabi food. The methods
of serving the food till now have been serving in the restaurant. The products and services of
the company include serving good food and nice ambiance for the customers visiting the

restaurant. The company however plan to introduce some additional services for the
improvisation of some of its functions like its corporate social responsibility and the supply
functions.
Buyer behavioural segments
Profile Individual/Family Large group Both
Demand Booking the restaurant
and payment on the
same day
Advance booking
and advance
deposits
Prompt service and
health conscious
menu
Product/services Generally, standardised
products/ services are
provided
Customised services
are provided due to
higher payment
Consideration for
the execution for
such product and
service is going on
(Sulek,&
Hensley,2007)
Competitive Low cost Customised services Can be customised
or improvisation of
the scenario
Sourcing overview
Student 1 for CSR
The previous diagram showed that there are two tier of the supply the chain the tier 2 include
the wholesaler, local farmers who provided vegetable to the primary supplier of the Punjabi
by nature of vegetable and meat. The main problem with the veggie basket was that there is

Wholesaler
Local Farmers
RK Food Land
Local Diary
Veggie Basket
Fresh Diary
Punjabi by
Nature
Tier 2 Suppliers
SUPPLY
Tier 2 Suppliers
high content of pesticide and fertilizers used on the vegetables and the meat is also processed
which create environmental pollution.
Fresh diary is the supplier of the diary products of Punjabi by nature. They procure their
products from RK food land and other local diary suppliers. The chief problem with the diary
products include bad impact of fertilizers and depletion of nutrients and using of plastic
packaging creating non bio degradable waste (Story et al. 2008).
Thus the company should contact with the local farmers and diary workers and make
negotiations for conducting direct business with the company and making contracts for using
organic sources for production. The extra investment that is going to be necessary for the
investment of purchasing organic products can be reduced from the extra charges that were
being paid by the company to the middleman in the supply chain i.e. veggie basket and fresh
diary.

Acquiring diary
and vegetable
products
Using POS software for
automated inventory
refilling and order
placement
Technology driven
It is not possible for the restaurant to take the step suddenly as the requirement of the
products are a daily need of the restaurant and sudden change is going to hamper the regular
operation so it is advisable for the restaurant to try and develop the other option while
continuing with the current scenario.
Student 1 for non CSR
The chief problem in the non CSR issue is that the use of technology slows down the process
of the placing of order and the acquiring of the vegetable and the diary products. This can be
dealt by two methods that is either by making the entire process manual which is not going to
be feasible in case the business grows and the second is the use of special software that is
going to automate the entire process of inventory management, placing of order and thus
speeding up the process of receiving the products. The introduction of automated technology
is going to reduce the interference of the workers.
Student 2 for CSR
The second diagram showed the procurement of electrical appliances and furniture products.
These electrical products are being purchased from Voltas. The chief problems due to the use

Tier 1 supplier Tier 2 supplier
Wholesaler
Furniture wholesaler
Voltas can remain the chief
supplier but they will be
requested to supply only non
CFC products
Non wooden furniture will be
ordered henceforth from RK
Furniture
Punjabi by nature
of the electrical appliances by Voltas are the excess use of electricity and the release of
chlorofluorocarbon in the air negatively impacting the environment (Park & Lee 2009). The
company Voltas purchases its products from its wholesalers.
The furniture requirement of Punjabi by nature is fulfilled by RK furniture. The using of
furniture impacts the nature through deforestation. This is also a serious environmental issue.
The only method that can be used by the restaurant to create a more responsible method of
dealing with the problem involves safe disposal of the old products that produces CFC and
using of new products that doesn’t produce any CFC emission. The company can ask its
supplier to provide non CFC products in exchange of the old CFC products (McCulloch,
Midgle & Fisher 2010).
The restaurant can start using non wood furniture instead of using wooden furniture. the use
of plastic as furniture is not harmful to the environment and thus can be an option for Punjabi
by nature.
Student 2 for non CSR

Purchase of
furniture
Identification of
requirement identified
through customer
arrival
Manual
The purchase of the furniture requirement is done through the evaluation regarding the
number of customers visit in the restaurant and the order is done by using of technology. The
restaurant aims to purchase non expensive furniture by identifying the expensive furniture
provider. This again can be done by locating non expensive furniture dealers and providing
order to them. This is not a difficult task as the requirement of furniture is not continuous.
Identifying the expensive furniture provider
Decision Factors
There are certain factors that have to be kept in mind by the owner of the business while
implementing any changes. There are certain common constraints in the business which are
 The current suppliers of the business cannot be suddenly changed. Change is possible
but it is going to take certain amount of time to execute the change. As a result the
restaurant has to continue with the current suppliers while building a new chain.
 There are constraints in the budget as the restaurants aim to provide good service to
its customers at reasonable cost so the procurement of supplies should be feasible or
using of CFC products.
 The technical knowledge of the employees is limited and more employees in technical
field can cause more expenses as the staffs are not computer literate.

Acquiring diary
and vegetable
products
Using POS software for
automated inventory
refilling and order
placement
Technology driven
Non-CSR metric (student 1)
The non CSR metrics that is being used is the use of POS software. The main functions of
POS software are
 The POS software is automated and minimum intervention is being required from the
side of the employees.
 The POS software just needs the input of data at regular interval of time which can be
done by the person dealing with the cash. The POS software automatically calculates
the rest of the functions. The software can automatically send orders when the
software goes beneath a certain level. The order amount and placement of order is
also done through the software.
 Extra human effort is not required more people can engage in the regular operation of
restaurant
There are some additional efforts that are to be done be done by the owner of the business to
implement this change
 Train the cashier in using the POS software
 Make the suppliers aware of the method that is going to be used by the business to
place orders.
 The cashier has to manually input the data regarding the transactions as well as
inventory management.

 There is a certain set up expense of the entire POS system.
The technology has been an issue for the business in this particular field and the aim of the
business is to increase the speed of service to provide greater customer satisfaction (Reijers &
Mansar 2007). The introduction of the POS software is going to increase the speed of the
process by reducing the manual interference to the minimum thus it can be stated that the
changes brought about by the introduction of the POS software can be considered as a
consistent with the company aim.
The POS software is the technology that is going to be used in this scenario.
There are chances that there is resistance from the side of the staff as it require some
adjustment on their part. But if the owner is ready to provide training to the cashier the
resistance can be overcome. The person dealing with reporting inventory or cash can acquire
the required skill for using the software. The number of people is using the software is also
less and the resistance might not become an issue.
The practices of the suppliers won’t get much effected by the use of the software as it is not
mandatory for the supplier to use POS to receive order from POS software it is only expected
that a supplier is able to use mobile phones. In case a supplier is unable to use mobile phone
the execution of this method might get jeopardised.
Non CSR metrics (student 2)
The changes introduced in this non CSR activity are:
 It is important for the restaurant to do a calculation of the asset valuation cost and
locate the exact suppliers who are responsible for charging high on supplying
furniture

Purchase of
furniture
Identification of
requirement identified
through customer
arrival
Manual
 This process is going to help the company to save money by reducing the expenses
that are incurred on the suppliers charging extra.
Identifying the expensive furniture provider
The impacts of the introduction of this operation process are:
 One of the objectives of the company is to reduce the cost buy identifying the
suppliers that are causing the extra expense is going to help reduce the expense to
some extent so it can be considered consistent with the purpose of the organisation
 There is going to be no technology needed in implementing this metric
 There cannot be any staff resistance as there is going to be no pressure put on the staff
to execute this metric
 Supplier has to be eliminated and new contracts are to be gained to bring the change
mentioned in the metrics.
CSR metrics for (student 1)
 The introduction of this metric is going to eliminate the middlemen in the supply
chain who are primarily responsible for the using of the fertilizers and the depleting of

Wholesaler
Local Farmers
RK Food Land
Local Diary
Veggie Basket
Fresh Diary
Punjabi by
Nature
Tier 2 Suppliers
SUPPLY
Tier 2 Suppliers
nutrient from the diary product this is going to provide health benefit to the customers
as well as the environment
 The chief negative aspect of the process is that it is difficult for the company to take
the step as the supply of these food products are a regular operational necessity of the
restaurant and is difficult to execute.
CSR metric for (student 2)
 The using of the non CFC technology in the kitchen has great environmental benefit.
This gas has various negative impacts on the atmosphere and the businesses are
primarily responsible for large amount of emission. This step is going to be profitable
for the environment in general

Tier 1 supplier Tier 2 supplier
Wholesaler
Furniture wholesaler
Voltas can remain the chief
supplier but they will be
requested to supply only non
CFC products
Non wooden furniture will be
ordered henceforth from RK
Furniture
Punjabi by nature
 There is a certain amount of expense that the restaurant has to bear for the purpose
which can go against the objective of the restaurant that is to be cost effective.

Conclusion
In conclusion it can be said that there are methods that can be used by the business to enrich
its current practices both in terms of CSR and non CSR functions. There are positive and
negative sides on implementing such changes. There are some organisational objectives and
organisational value both of them has to be weighed and decision shall be taken by the owner
of the business.

Reference List
Story, M., Kaphingst, K. M., Robinson-O'Brien, R., & Glanz, K. (2008). Creating healthy
food and eating environments: policy and environmental approaches. Annu. Rev. Public
Health, 29, 253-272.
Sulek, J. M., & Hensley, R. L. (2007). The relative importance of food, atmosphere, and
fairness of wait: The case of a full-service restaurant. Cornell Hotel and Restaurant
Administration Quarterly, 45(3), 235-247.
Park, S. Y., & Lee, S. (2009). Financial rewards for social responsibility: A mixed picture for
restaurant companies. Cornell Hospitality Quarterly, 50(2), 168-179.
Reijers, H. A., & Mansar, S. L. (2007). Best practices in business process redesign: an
overview and qualitative evaluation of successful redesign heuristics. Omega, 33(4), 283-306.
McCulloch, A., Midgley, P. M., & Fisher, D. A. (2010). Distribution of emissions of
chlorofluorocarbons (CFCs) 11, 12, 113, 114 and 115 among reporting and non-reporting
countries in 1986. Atmospheric Environment, 28(16), 2567-2582.
.