Darden improves supply chain to save money

on Friday, June 29, 2012

Darden improves supply chain to save money Darden Restaurants, which works with chains such as Olive Garden and Red Lobster, recently transformed its supply chain methods in order to save million of dollars.

The new supply chain management being implemented by the company will increase automation and institute other electronic solutions with the goal of better managing its food orders, according to the Orlando Sentinel.

The company spends more than $3 billion on food and supplies, the Sentinel reported, and with the new technology being used, is expected to save at least $45 million a year as a result of lower prices and less wasted food.

"They can use some of that cost savings to pass onto the consumer, not taking prices up as much as they might need to to cover some of the inflationary pressures we're seeing," said Steve West, a restaurant industry analyst for Investment Technology Group.

A recent National Hog Farmer article showed that supply chain communication in the meat industry can drive positive change and improve customer service and the quality of the food being served.

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