List of Figures:

S.no

Title

1

Logo of
Subway

2

The range
of food products sold at Subway

3

List of Food products
in Indian Subway stores

4

Process of increasing Supply
Chain Visibility

 

 

 

 

 

 

 

 

 

Subway – Eat fresh,
Live green:

Fig 1: Logo of Subway

Subway IP Inc. is a private American fast food
restaurant chain headquatered in Milford, Connecticut. Subway has 44758 stores in
112 countries. Subway has 621 stores in India. Subway was founded by Fred
DeLuca along with Dr. Peter Buck as a submarine sandwich shop in 1965. By 1972
the duo began to franchise the Subway brand. Subway ventured into India in 2001
by opening its first store in India at Saket, New Delhi and expanded to Chennai,
Bangalore and Hyderabad in 2003.

 

Mission:

·        
Subway aims to continuously evolve the menu of great tasting, nutritious
options and provide access to nutrition and healthier lifestyle information

·        
Subway ensures
the highest quality and safety standards of food for their customers

·        
Subway aims to Find
sustainable and cost-effective solutions that serve the business needs of our
franchisees

·        
Subway’s focus is
on sustainability initiatives on energy efficiency, water & resource
conservation, sustainable sourcing, waste reduction and supply chain management

·        
Subway encourages
their franchisees to contribute to their communities, promote diversity and
choose “environmentally friendly” options and business practices

Raw material Sourcing:

Subway restaurants are known for
serving fresh, great tasting food and good nutritional choices to fast food
customers around the world. Franchisee owned Independent Purchasing
Cooperatives or Companies (IPCs) are responsible for procuring our delicious
products and ingredients as well as the equipment, supplies and services used
in the restaurants. Subway ensures high quality of food and food safety
by its sustainable practices by streamlining their supply chain.

Food Quality and Safety Standards:

Subway prioritizes food quality and
food safety the most. They aim to consistently meet the highest quality
standards in all stages of supply chain. The suppliers have to meet the Vendor Code
of Conduct.

Subway provides details product specifications
and inspects samples from the supplies. Third party audits take place at all
approved facilties of Subway for food safety like HAACP- Hazard Analysis and
Critical Control Point and GMPs – Good Manufacturing Practices. The farms
are also audited for Good Agricultural and Harvesting Practices. HPP – high
pressure pasteurization is a test used in Subway audit process to
improve freshness, food safety and eliminate the dependence on chemical
preservatives.

Hygiene is also practiced by the
workers at Subway stores. All Sandwich makers are used to follow hand washing
procedures to ensure proper handling of food. Products are kept at proper-holding-temperatures.
This ensures proper shelf life management of inventories in the store

Animal Husbandry:

            Subway is committed
to working with suppliers to continuously improve the welfare of the chicken that
are being used in the products through many avenues like breeding, bird
activity, housing environments and harvest methods. The supply chain is
committed to continual improvements based on scientific research. The suppliers
are evaluating alternative breeds with the objective of further improving the
welfare of the animal during its lifecycle while still delivering safe,
quality, great tasting food our customers demand in a way that minimizes the
environmental impact. Subway continues to work closely with our suppliers to
identify alternative breed that can be incorporated into our supply chain.
Subway also uses best practices in animal breeding like improved housing, improved
harvesting and verification methods

·        
Improved Housing. The suppliers are raising broiler chickens, so they are
kept comfortable in a controlled, cage-less environment which helps them to protect.
They also ensure room for the animals to move and ensure constant access to a
nutritionally complete diet and water. It is also ensured that fresh air ventilation
and periods of light and dark are proper. Suppliers already have in place enhancements
to birds’ living environment like improved lighting, litter management and
added enrichments such as perches and hide boxes

 

·        
Improved harvest
methods: In order to
support proper animal husbandry and harvest method, suppliers use industry
standard harvest methods. By 2024, broiler chickens in North America will be
processed only by using a controlled or low atmospheric stunning or controlled
atmospheric killing as well in Canada.

·        
3rd Party Verification. In U.S., meat suppliers are audited by PAACO (Professional Animal
Auditor Certification Organization) certified auditors to ensure they meet
animal welfare standards. Also, all chicken products come from chickens raised
without antibiotics (RWA) which will be USDA Processed Verified in 2017. This
verification will be expanded to include the continuous improvements in animal
welfare practices outlined in ISO 34700 as they are implemented.

 

Palm oil sourcing:

         One of ingredients in
Subway’s food products is Palm oil that is used due to its high quality and
desired baking characteristics. The use of palm oil supports initiative to
eliminate Trans fats. Currently, palm oil is used an ingredient or processing aid
in some products. The RSPO (Roundtable on Sustainable Palm Oil) formed in 2004
promotes the growth and use of sustainable palm oil products through credible
global standards.

Over the past several years Subway has worked with our approved
suppliers to improve the sustainability of the palm oil used in its products
and eliminating it from recipes where feasible. All of the Subway’s approved
suppliers purchase the palm oil used in products from RSPO members.

 

Sustainabilty:

            Sustainable sourcing of Subway is to extend and support
principles of responsible farming and fishing and want to help ensure the long
– term sustainability of the earth’s natural resources by inculcating best animal
husbandry, fair labor practices and sustainable agricultural &
manufacturing practices.

Vendors commit to
complying with fair and proper animal husbandry practices, maintaining Good
Agricultural Practices and Good Manufacturing Practices audits for food safety while
adhering to the Gold Standard Food Safety and Quality Policy. Subway uses a
combination of internal and external third-party audits to ensure our standards
are met and to protect the suppliers, distributors, restaurant operators and the
customers.

Working with the
franchisee-owned Independent Purchasing Cooperatives, the Subway brand looks
for vendor partners who share our values and commitment to environmental and
social responsibility and continually work with them to improve the
sustainability of our products. The purchasing strategy includes female and
ethnic minority suppliers, wherever possible, in all aspects of the supply
chain. In the U.S., Subway purchases over $100 million of products from
minority suppliers annually.

Streamlining:

          With tens of thousands of restaurants
throughout the world, Subway aims to make its Supply chain as efficient and
sustainable as possible. Many of the vendors and suppliers have worked add or
move locations closer to the distributors and have established re-distribution
centers, thus reducing shipping costs and emissions. Subway has a Distribution
Operational Efficiency program that looks for ways to ensure all travel routes
and driving techniques are optimized and trucks are shipped full to further
reduce mileage. In 2007, Subway introduced a process in the U.S. that
consolidates all equipment orders into one shipment for new and remodeled
restaurants, eliminating excess packaging and unnecessary waste at the building
site, it has now been expanded to Latin America.

Product Range:

          The product
range of Subway is partly standardised and partly customised to the needs of
the local market.

 

Fig 2: The food products Subway

The following are the products in Indian Subway stores

Fig 3: List of Food products in
Indian Subway stores

 

 

Supply chain Transparency:

            Subway’s
has also achieved complete transparency in its supply chain visibility. The
high level of transparency in a supply chain will allow the company to track
its goods at various stages in the supply chain. This reduces the complexity in
deciding critical factors for inventory management and order cycle.

            In order
to improve the visibility in supply chain of Subway, it has used four step processes.
Tracing by use of a lot code to track the good from bottom to top of supply
chain is the important factor in improving the visibility. The item information
is embedded on the goods. The information is efficiently managed by Subway by
sharing the necessary information with the vendors. The partners of supply
chain have contributed to improving and implementing this process using GS1
standard.

 

Fig 4: Process of increasing Supply Chain Visibility

 

 

1.     
Use of identifiers:            Subway allocates a GTIN – global trade item number to all
its products. The vendors for Subway also follow the same to their products. To
improvise business transaction of goods, vendors use a barcode on their products.
The information related to that item are stored in a centralized data server.
The barcode holds the GTIN which is the key to access the product specific
information. They also use GLN- Global location number to assign code to the
locations of the supply chain facilities

2.     
Centralized product data
network:      Subway has implemented a system to aggregate
whole of its supply chain identifiers data at once place by use of GSDN- Global
Data Synchronization Model. The product information is stored in a network or
cloud. Both vendors involved in supply chain of Subway and Subway can access
the data and information about the product from the network. The vendors and
Subway have gained by increasing the accessibility to information. This
translated to increase in traceability of the supply chain and has reduced the
cost of handling and transporting the products to the desired place.

3.     
Labelling: Subway standardized the use of bar code by using GS1-128 labelling. The
use of these bar codes was made mandatory to the suppliers. The Bar code label is
the key to accessing the information about the product. This improved the speed
at which the inventory was tracked. It also became more reliable method.

4.     
Technology Integration: To attain a solution for enhanced traceability, Subway partnered
with FoodLogiq, to increase traceability of the product. FoodLogiq created a
platform that can synchronizes the product data with GDSN and can allow the
partners in supply chain to access the information about the products. This allows
Subway to trace a product from the initial manufacturing stage to all the way till
it is sold at the Subway store.

Overall efficiency of the
supply chain of Subway received a facelift by the implementation of Information
technology in the supply chain management. The losses due to recalls and
withdrawals have highly reduced the loss incurred by Subway and its partners.

           

 

 

 

 

References

http://www.subway.com/en-in

http://cdn2.hubspot.net/hubfs/1006883/Subway_IPC_FoodLogiQ_Case_Study.pdf

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