Burger Inc. Case Study

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So it is clear to say from the raw material to the finished product, MPS plays a very important role. Plus they also have a team who having strategic mind also works on MPS manually.

Role of Information System in Supply Chain

Probably, the most important part of a modern supply chain is an effective information system.

Few decades back there was no concept of maintaining a continuous information flow within a supply chain.

In fact, supply chain itself was not even considered as a different entity and its components were managed by other departments within an organization. With the introduction of a supply chain management to effectively deliver value to the costumer, an integrated information system has become a mandatory element to control the information throughout the chain.

Berger Inc has implemented a CRM which is designed by Eplanet itself is flows around its chain and keeps an upright record which enable an effective coordination.

Enterprise Resource Planning (ERP)

ERP is business management software that is a blend of various application used to integrate information from different business processes. Data can be managed and stored from different stages of business such as Sales, Manufacturing, Inventory Management, Product Development and Costing.

Burger Inc. uses customized designed software by Eplanet Communications named OMS.

Inventory Management

The bsic purpose of Supply Chain Management is to control inventory by managing the flows of materials.

FIFO or LIFO?

The company follows FIFO inventory system since it is dealing with FMCG and food items which cannot be kept for a long period of time.

Lot Sizing Techniques

Different Mathematical models are designed to assist decision making at all level of design and control. These models have become standard subjects in Operation Management (OM). OM problem areas including inventory control, scheduling, capacity planning, forecasting, quality control and equipment maintenance becomes an important part of the business. The reason of doing mathematical modeling approach to inventory control are:

- The inventory models are among the oldest results of the OM field and almost universally known.

- Inventory plays a key role in the logistical behavior of virtually all manufacturing systems.

- These classical inventory results are central to more modern techniques of manufacturing management, such as Material Requirment Planning (MRP), Just-in-time (JIT) and Time Based Competition (TBC).

SUPPLY-CHAIN STRUCTURE [pic 1]

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Stages Involved

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Drivers of Supply Chain

The major drivers of Supply Chain of Burger Inc. consists of three Logistical driver and three Cross Functional Drivers:

- Logistical Drivers

Facilities

Burger Inc. offers various kinds of burgers for every taste. From spicy to non-spicy, from desi to cheesy. It has got the taste for everyone.

Inventory

Burger Inc. has two branches in Karachi and one Hyderabad opening very soon. Burger Inc. offers 24/7 home delivery to satisfy your hunger at any clock.

Transportation

Burger Inc. has their own delivery boys who do fast and instant delivery and make sure that the food is delivered on the right time and in the right condition.

- Cross Functional Drivers

Information

The competition is really tough so the information must be followed at higher speed to fulfill the need of the customers.

Sourcing

The sourcing of raw material is done from the top brands of Pakistan. For example: K&N’s and MeatOne.

Pricing

Burger Inc. follow neutral pricing strategy which is adapted by every class. Their pricing of burgers starts from Rs.200 to Rs.699

Push Or Pull Strategy?

Burger Inc. follows Pull and Make-to-Order Stratey and because of that their supply chain structure is very fast, active and efficient.

Strategic Fit

Burger Inc. is smartly achieving their strategic fit point through:

- Increasing variety of products and offering new tastes.

- Decreasing production cost.

- Decreasing inventory holding cost.

- Increasingly demanding customers.

- Effective marketing techniques.

- Fragmentation of Supply chain ownership.

SOURCING

Sourcing Strategies

Burger Inc. responsible sourcing strategy is the process of purchasing goods and services, which are:

- Produced or provided in conditions that doesnot cause harm to human, animal or natural environments.

- From suppliers that meet maximum requirement’s regarding business integrity, labor conditions, health and safety & environmental standards in their business activities, production processes, service provision and their own purchasing procedures.

Pool of Suppliers

Burger Inc. has its own pool of suppliers who work on fast stream to supply the required demand within the given time frame ensuring the best quality raw material.

Centralized Or Decentralized Purchasing

Burger Inc. follows centralized purchasing which