Supply Chain Analysis and Management at Tim Horton's - BUS300

This report analyzes the supply chain management of Tim Horton's, examining its extensive network of suppliers for various products and services. It highlights the importance of strong communication and cooperation with suppliers for smooth operations. The report details Tim Horton's initiatives to improve responsible sourcing, including a supplier code of conduct, commitment to animal welfare, and support for sustainable palm oil production. It also discusses partnerships with organizations like the World Wildlife Fund for commodity sourcing and risk analysis, focusing on environmental considerations and compliance with legal factors. The analysis covers how the company ensures a continuous supply of raw materials, maintains supplier relationships, and addresses environmental concerns within its supply chain, including responsible sourcing and environmental farm plans. The report references key academic sources to support its findings.

Running head: SUPPLY CHAIN 1
Supply chain
Name
Institution

SUPPLY CHAIN 2
Supply chain at Tim Horton’s
The supply chain at Tim Horton’s business is made up of an extensive network of
suppliers, both supplying different types of products to be used in the production of their
restaurant services and services that are required by the business during its day to day operations.
The business successfully manages its supply chain by closely working and cooperating with its
suppliers to ensure smooth communication between the management and the suppliers. By
ensuring better communication and corporation, the business has been continuously operating
successfully without breakdown due to the timely supply of the production materials.
Christopher (2016) argued that corporation between the suppliers and the company management
is identified as the key functions of the business success since they dictate the availability of raw
materials the business will be using in their production process hence without proper channel of
supply chain, the business is likely to experience shortage and breakdown of work process due to
inadequacy of raw materials.
Since Tim Horton’s company is involved in various production activities, like equipment
supplier, packaging, food, beverages and other more. The business made an initiative that was
aimed at improving its responsible sourcing practices that are back in the year 2014. The
initiatives which were made by the business include partnership and supplier code of conduct,
commitment to the animal welfare and to support the production of sustainable palm oil by
partnering with the local farmers. The supply code conduct initiative is aimed at improving the
relationship between the organization and the suppliers to ensure a smooth supply of the required
materials for the business services (Hugos, 2018). The code of conduct in the supply chain
entails enhancing transparency and accountability in giving out tenders and timely payment
program for the suppliers as agreed in the tendering contract. In most cases, unprofessional

SUPPLY CHAIN 3
business managers tend to cut off legitimate suppliers in favor of other incompetent suppliers
based on the prices and the commissions they will be receiving from the suppliers upon giving
out the tender; this has negatively affected the supply chain since such suppliers do not adhere to
the tender contract resulting to breakdown in production process as a result of lack or inadequate
supply of raw materials.
Commitment to animal welfare by Tim Horton’s company was intended to improve the
quality and sustainability of animal products since the company is also involved in the
production of animal products like milk and milk products like cheese. By ensuring the welfare
of the animals, the firm will ensure a continuous supply of animal products from the local
farmers, which to some extent; according to Kshetri (2018), the act can be considered as the
social responsibility in the community. By supporting animal welfare, the organization will gain
farmers’ trust. Therefore most of the local farmers will be willing to supply the organization with
animal products and also to buy farm types of equipment for the organization, thus enhances
mutual benefits between the company and the farmers or suppliers.
The support for the up to date production of sustainable palm oil is a way of ensuring a
continuous supply of palm oil by the suppliers, thus empowering their palm production process
through the provision of farm pieces of equipment and other incentives needed for the production
of palm oil. This is the most recommended supply chain management since it guarantees a
continuous and sufficient supply of palm oil products to the company. Tim Horton’s will
guarantee a continuous supply of palm oil from farmers, this is considered as a competitive
advantage for the business following the stiff competition in the market for the palm oil products
and suppliers (Mangan & Lalwani, 2016).

SUPPLY CHAIN 4
To successfully manage its supply chain, Tim Horton’s business has partnered with the
world wildlife funds on the commodity sourcing and risk prioritizing analysis associated with
sourcing such products. The company analyzed the products which could contribute to
environmental degrading like pollution and deforestation, which are illegal according to the
environmental activities and policies. The analysis was important to the Tim Horton’s since it
was used to identify on various environmental acceptable sourcing channels which will not
degrade the environment since it is an unacceptable act and can be led to the closure of the
business by the government.
Following the PESTEL analysis, legal factors require considerations from the management
of both profit-making and non-profit organizations since it defines government requirements and
regulations concerning the intended business by the organization; hence consideration and
adherence to such regulations will reduce government intervention in the activities of the
business (Meredith & Shafer, 2019). Government intervention in the activities of the business is
costly to the business since they have incurred the cost of the audit and other services required
and also risks the organization its operation license as in most cases, the government tends to
seize their operation license, thus leading to the mandatory dissolution of the business.
Due to compliance and analysis of the environmental sourcing factors, most of the dairy
farmers in Canada have developed an environmental farm plan which is aimed at conserving the
environment at the expense of their milk production. The organization has been offering
production training to most of its suppliers to ensure responsible sourcing efforts which is
according to the environmental policies. Through responsible sourcing, the organization has been
healthily competing with other firms in the market without government interference, which
might cause production breakdown.

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References
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Hugos, M. H. (2018). Essentials of supply chain management. John Wiley & Sons.
Kshetri, N. (2018). 1 Blockchain’s roles in meeting key supply chain management
objectives. International Journal of Information Management, 39, 80-89.
Mangan, J., & Lalwani, C. L. (2016). Global logistics and supply chain management. John
Wiley & Sons.
Meredith, J. R., & Shafer, S. M. (2019). Operations and supply chain management for MBAs.
Wiley.