Alamein Restaurant Supply chain

1. El Alamein Restaurant

2. Prof. Sara El Gazzar
Presented To :
Presented By :
• Mohamed Hassoun
• Hesham Magdy
• Amr Shoukry

3. Introduction
• Fast food restaurant located in new Alamein city offering two
main categories of fast food (local-Special).
• Taking advantage of the new thriving city there and huge
numbers of permanent and part time workers and employees
plus the native people of the old city so we have the required
market to penetrate.
• In addition to summer months they witness big increase in
the demand.
• Although presence of many competitors but with low quality
so if we manage to drive better quality with reasonable prices
we gain big market share in short time.
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4. FR
• Products
4
Special DishesFast Food

5. FR
Supply chain network
• In every supply chain there are 5 partners (supplier-manufacturer-
distributor – retailer-end customer) with 4 cycles ( procurement-
manufacturing-replenishment-customer order)
• But in our supply chain we don’t have distributors or retailers because
we deal take from the supplier in daily or weekly base according to
products and manufacture then deal with end customer directly
• So we are dealing with 3 main cycles ( procurement-manufacturing -
customer order).
5
supplier manufacturer End customer

6. FR
• Due to the variety of the products we can divide them
into two main categories .
• Local products which take push view alone the supply chain
because the demand on it is almost constant and certain .
• And will be offered in relative low prices due to market
segment targeted .
• Special products which will apply push view till customer
order then apply pull after that so we take the customer order
then prepare the order in this category.
• The prices of these products would be offered in higher price
compared to the other products due to marker segment
targeted which has higher income and require higher quality.
push/pull view

7. FR
Procurement Cycle
Manufacturing Cycle
Customer Order Cycle
Supplier
Manufacturer
Customer order arrives
PushPull* Fast Food
Customer
Distributor
CycleView
- Push / Pull View

8. FR
Procurement Cycle
&Customer Order and
Manufacturing Cycle
Supplier
Manufacturer
Customer order arrives
PushPull* Special Dishes
Customer
CycleView
- Push / Pull View

9. FR
Competitive Strategy
Cost S trateg y
• The main focus is the cost here to penetrate the market
with relative low prices compared to the competitors.
• Cost is the most important factor in the local products
with convenient quality due to the targeted market
which cares about the economical side the most .
• The quality is the main concern with the special
products with convenient prices because the targeted
market .
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10. FR
Highly Uncertain Supply and Demand
Highly Uncertain
Supply and Demand
Predictable
Supply and
Demand
Special Dishes
Fast Food
Implied Uncertainty Spectrum
Highly Uncertain
Supply and Demand

11. FR
Special DishesFast Food
Supply Chain Competitive Advantage:
Efficient Strategy Responsiveness Strategy
Time
Cost
Flexibility
Quality
Time
Cost
Flexibility
Quality

12. FRCost-Responsiveness Efficient Frontier
Cost
Responsiveness
High
High
Low
Low
Special DishesFast Food
Efficient Strategy Responsiveness Strategy
Cost
Responsiveness
High
High
Low
Low
Highly Efficient
Somewhat Responsive

13. FR
Highly
Responsiveness
Highly
Efficient
Special Dishes
Fast Food
Responsiveness Spectrum
Highly
Responsiveness
Highly
Efficient

14. FR
Achieving Strategic Fit
Special DishesFast Food
Efficient Strategy Responsiveness Strategy
Implied
Uncertainty
Spectrum
Certain
Demand
Responsive
Supply Chain
Uncertain
Demand
Responsive
Spectrum
Efficient
Supply Chain
Impled
Uncertainty
Spectrum
Certain
Demand
Responsive
Supply Chain
Uncertain
Demand
Responsive
Spectrum
Efficient
Supply Chain

15. FR
• The purchasing process is an essential part of every food
service operation. All competent cooks should be skilled in
buying the appropriate ingredients, in accurate amounts, at
the right time, and at the best price.
• Every kitchen operation has different purchasing
procedures. But there is one rule that should always be
followed:
• Buy only as much as it is anticipated will be needed until
the next delivery
Purchasing process
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16. FR
• There is a standard purchasing order
form for food industry we can use
Pu rc h asin g req u isition
Purchasing process
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17. FR
su p p lier selec tion
Purchasing process
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• First of all we set the criteria that
suits our strategy and cost, quality
specs
• Then list the available near suppliers
who can fulfill our needs and
provide us items we need

18. FR
• We choose the appropriate suppliers
who match our cost and required level
quality
• We would do a 6-month deals with
them to get discount and get delivery
twice a week for unperishable goods
• Payment will be on-account on monthly
base
A p p rovin g an d mon itorin g
Purchasing process
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19. FR
• We can take advantage of presence of
Fatallah gomala market near the
suggested location who can provide us
with almost our needs as contingency
plan in cases of stock out or late
delivery from our main suppliers from
Alexandria .
• And decrease the amount of safety
stock so decrease the space deducted
to warehouse.
A p p rovin g an d mon itorin g
Purchasing process
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20. FR
• The location is first of petrol street
(El alamien old city)
• It is strategic location because it has
easy access from the main roads in
the area
Fac ility location
Production management
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21. FR
• We can divide the project to two
phases : phase 1 we will depend on
take away in fast food and only
delivery in special dishes so the
layout will be mainly used as
warehouse and kitchen and just big
stand to handle the orders
Fac ility layou t
Production management
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22. FR
• Phase 2 : open second floor and
tables and chairs and serve the
special dishes and in addition to
serving hot and cold beverages
Fac ility layou t
Production management
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23. FR
• It will be much more assembly
system with the fast food
• But in special dishes we receive the
order start in it then packing it then
deliver through bikes to guarantee
speed
Proc ess d esig n
Production management
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24. FR
• Incentive Obstacles
• Information Processing Obstacles
• Operational Obstacles
• Pricing Obstacles
• Behavioral Obstacles
Obstacles Coordination
in a Supply Chain

25. FR
• The main obstacle here is the daily management
and inventory management of the restaurant
• in addition to the obvious challenges of
overstocking, spoilage and waste F&B inventory is
also predisposed to cross-contamination.
• Foodborne bacteria and viruses can have drastic
consequences for consumers and cause major
damage to a company and its reputation.
O p eration al O bstac les
Obstacles Coordination
in a Supply Chain
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26. FR
• Traceability of all ingredients is paramount to ensure
any damaging effects on consumers is eliminated for
future batches. Lot traceability, batch and serial
number tracking are vital for this task as they allow
complete traceability and transparency of ingredients
throughout the supply chain.
• It is absolutely essential for manufacturers to have
real-time access to inventory levels so that decisions
can be made swiftly and products can be ordered
quickly.
O p eration al O bstac les
Obstacles Coordination
in a Supply Chain
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27. FR
• Frequent staff turnover or troublesome
employee issues can be one of the more
frustrating aspects of managing a restaurant. It’s
important to keep open communication with all
staff about operational issues or concerns so
that everyone from servers to chefs feel valued
for their time and talent
Beh avioral O bstac les
Obstacles Coordination
in a Supply Chain
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28. FR
• Hiring and training the right employees can make the
difference when it comes to your daily operations. Having
trustworthy, proactive and reliable staff member brings peace
of mind. Yet, the employee turnover rate in the restaurant
industry is really high.
• Placing greater emphasis on finding and training staff will help
you reduce costs over time and will allow you to provide
better customer service and a better customer experience
overall. So, once you find that perfect person:
Beh avioral O bstac les
Obstacles Coordination
in a Supply Chain
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29. FR
• There will also be behavioral
obstacles from the Bedouin people
in the area as they will oblige us to
let some of them work for us (they
are not reliable nor trained) and
they will take security money.
Obstacles Coordination
in a Supply Chain
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Beh avioral O bstac les

30. Drivers of Supply Chain Performance
• Role
- Dedicated - Product focus
• Location
The restaurant will located in first of petrol street
(El Alamein old city) .
• Capacity
We will use one facility with high capacity and
multi-purpose
Facilities
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31. Drivers of Supply Chain Performance
• Cycle inventory
- Time horizon between supplier shipments will be 3
days .
• Safety inventory
Safety inventory will be 2 days only to decrease costs.
• Seasonal inventory
In summer we will increase Inventory because we
predict a huge demand.
Inventory
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32. Drivers of Supply Chain Performance
• transportation mode : Trucks
- The suppliers will supply from Alexandria to
restaurant by trucks balance between
responsiveness and efficiency.
• Rout :International Coastal Road.
Transportation
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33. Drivers of Supply Chain Performance
• Efficient : collect data and information on
monthly base by counting orders and products
ordered .
Information
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34. Drivers of Supply Chain Performance
• No out-sourcing in the manufacturing so
we don’t lose our competitive advantage.
• Just outsourcing raw-materials and supplies.
• We will outsource part-time labors and
warehouse space in summer season due to
increase in demand in this period.
Sourcing
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35. Drivers of Supply Chain Performance
• We depend on fixed prices for all categories
of the products all the seasons .
Pricing
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36. FR
Thank You.