Important Points On The Case Study

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This case study focuses on Subway, a global fast-food

restaurant chain known for its submarine sandwiches.


Here are the key points summarized:

1. **Overview of Subway**:
- Subway is a restaurant chain specializing in
submarine sandwiches.
- It became the largest fast-food chain in the United
States in 2002.
- It operates in over 100 countries, with headquarters
in Milford, Connecticut.
- Subway serves fresh sandwiches, salads, and
vegetables, with over 44,700 franchised locations
worldwide.

2. **Founding and Mission**:


- Founded in 1965 by Fred DeLuca and Dr. Peter Buck.
- Subway's mission is to provide tools and knowledge
to entrepreneurs for successful competition in the fast-
food industry by delivering value to consumers through
great-tasting and healthy food.

3. **Franchise Strategy**:
- Subway uses a franchise strategy, customizing menus
to regional preferences.
- Independent Purchasing Cooperative (IPC) manages
regional supply chains.

4. **GS1 Standards**:
- Subway introduced GS1 standards for traceability in
its supply chain.
- GS1 is a non-profit organization that establishes
global standards for business communication, including
barcodes.

5. **Innovation**:
- Subway faced complaints about its lack of innovation.
- Initiatives like mobile ordering, loyalty programs, and
partnerships with delivery services (Uber Eats, Grubhub,
DoorDash, Postmates) have been launched.

6. **Supply Chain Challenges**:


- Supply chain challenges include delays, lack of
resources, and inadequate coordination affecting
customer satisfaction.
- Waiting time is a critical factor.
- Technology and better coordination are suggested to
improve operations.

7. **Inventory Management**:
- Subway uses First-In, First-Out (FIFO) Inventory
Management to reduce spoilage.
- Fresh ingredients are delivered daily to stores.

8. **Store Renovation**:
- Subway has invested in store renovation for a
modern customer experience.
- Subway® Fresh Forward design was developed with
input from franchisees and consumers.

9. **Inventory Management Focus**:


- Efficient inventory management is a core feature of
Subway's operations.
- FIFO is employed to ensure customers receive the
freshest products.

10. **Supply Chain Process**:


- The study suggests that Subway's supply chain
process is more of a 'push' than a 'pull' system.
- Customers initiate orders, but products are prepared
based on pre-supplied components.

In summary, Subway's case study highlights its global


presence, franchise model, efforts to innovate, supply
chain challenges, inventory management, store
renovation, and supply chain process characteristics.

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