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8/10/2019 Supplier Chain Management
1/12
By :Nadiah bt Mohd Kahar
GS40981
8/10/2019 Supplier Chain Management
2/12
A Subway outlet at Mid Valley, KL received 20
boxes of overproofed and mouldy frozen breaddough.
Storyline :
It will be a long weekend this week. Subwayoutlet at Mid Valley is targetting to double uptheir sales from the previous weekend.Therefore they ordered extra stock from themanufacturer. Upon receiving the stock, it
was found that all bread dough in the cartonswere overproofed (size bigger than thestandard measurement), thawed (out ofshape, stick to each other) and mouldy.
8/10/2019 Supplier Chain Management
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Wrong raw materials? Errors during processing (e.g. mixing, blast
freezing)?
Improper storage temperature in thewarehouse?
Broken cold chain throughouttransferring/transportation?
8/10/2019 Supplier Chain Management
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OutletSubway, Mid
Valley Megamall,KL
ManufacturerDe-Luxe FoodServices, Klang
TransporterGerimis Baiduri
Logistics, KL
End Customer
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5/12
Subway
Make order for 20 cartons
to be delivered to Subway,
Level 2, Midvalley
Megamall. ETD : Friday
De-Luxe Food Services
Sales Dept receives order
from outlet.
De-Luxe Food Services
Purchasing Dept get raw
materials from suppliers.
De-Luxe Food Services
Production Dept produces
the frozen bread dough
according to the order.
Gerimis Baiduri Logistics
Does loading process
from De-Luxe warehouse
into the cold truck and
deliver to outlet
Midvalley Megamall
Subway receives the
ordered stock at the
loading bay (level LG2) of
the complex
Subway
Order stocks transferred
to the freezer at the back
of the outlet
Subway
Prepares the bread dough
as per ordered by
customers.
Subway
End customers (eat-in or
take away)
8/10/2019 Supplier Chain Management
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Subway
Make order for 20 cartons
to be delivered to Subway,
Level 2, Midvalley
Megamall. ETD : Friday
De-Luxe Food Services
Sales Dept receives order
from outlet.
De-Luxe Food Services
Purchasing Dept get raw
materials from suppliers.
De-Luxe Food Services
Production Dept produces
the frozen bread dough
according to the order.
Gerimis Baiduri Logistics
Does loading process
from De-Luxe warehouse
into the cold truck and
deliver to outlet
Midvalley Megamall
Subway receives the
ordered stock at the
loading bay (level LG2) of
the complex
Subway
Order stocks transferred
to the freezer at the back
of the outlet
Subway
Prepares the bread dough
as per ordered by
customers.
Subway
End customers (eat-in or
take away)
Wrong brands purchased fromsupplier.Action : Check and verify the raw
materials upon receiving
8/10/2019 Supplier Chain Management
7/12
Subway
Make order for 20 cartons
to be delivered to Subway,
Level 2, Midvalley
Megamall. ETD : Friday
De-Luxe Food Services
Sales Dept receives order
from outlet.
De-Luxe Food Services
Purchasing Dept get raw
materials from suppliers.
De-Luxe Food Services
Production Dept produces
the frozen bread dough
according to the order.
Gerimis Baiduri Logistics
Does loading process
from De-Luxe warehouse
into the cold truck and
deliver to outlet
Midvalley Megamall
Subway receives the
ordered stock at the
loading bay (level LG2) of
the complex
Subway
Order stocks transferred
to the freezer at the back
of the outlet
Subway
Prepares the bread dough
as per ordered by
customers.
Subway
End customers (eat-in or
take away)
Incorrect mixing time, insufficientblast freezing.Action : To monitor the parameters
(e.g. mixing time settings, product
core temperature).
8/10/2019 Supplier Chain Management
8/12
Subway
Make order for 20 cartons
to be delivered to Subway,
Level 2, Midvalley
Megamall. ETD : Friday
De-Luxe Food Services
Sales Dept receives order
from outlet.
De-Luxe Food Services
Purchasing Dept get raw
materials from suppliers.
De-Luxe Food Services
Production Dept produces
the frozen bread dough
according to the order.
Gerimis Baiduri Logistics
Does loading process
from De-Luxe warehouse
into the cold truck and
deliver to outlet
Midvalley Megamall
Subway receives the
ordered stock at the
loading bay (level LG2) of
the complex
Subway
Order stocks transferred
to the freezer at the back
of the outlet
Subway
Prepares the bread dough
as per ordered by
customers.
Subway
End customers (eat-in or
take away)
Cold truck is not pre-cooled, temperature of the loadingarea is not cold enough, cold truck did not cold enoughthroughout the journey.Action: Pre-delivery inspection, to monitor the temperatures
using temperature logger).
8/10/2019 Supplier Chain Management
9/12
Subway
Make order for 20 cartons
to be delivered to Subway,
Level 2, Midvalley
Megamall. ETD : Friday
De-Luxe Food Services
Sales Dept receives order
from outlet.
De-Luxe Food Services
Purchasing Dept get raw
materials from suppliers.
De-Luxe Food Services
Production Dept produces
the frozen bread dough
according to the order.
Gerimis Baiduri Logistics
Does loading process
from De-Luxe warehouse
into the cold truck and
deliver to outlet
Midvalley Megamall
Subway receives the
ordered stock at the
loading bay (level LG2) of
the complex
Subway
Order stocks transferred
to the freezer at the back
of the outlet
Subway
Prepares the bread dough
as per ordered by
customers.
Subway
End customers (eat-in or
take away)
Ambient environment temperature, long distance from LG2to Level 2 in the complex.Action : Speed All received products shall be transferred as
soon as possible to prevent broken cold chain.
8/10/2019 Supplier Chain Management
10/12
Subway
Make order for 20 cartons
to be delivered to Subway,
Level 2, Midvalley
Megamall. ETD : Friday
De-Luxe Food Services
Sales Dept receives order
from outlet.
De-Luxe Food Services
Purchasing Dept get raw
materials from suppliers.
De-Luxe Food Services
Production Dept produces
the frozen bread dough
according to the order.
Gerimis Baiduri Logistics
Does loading process
from De-Luxe warehouse
into the cold truck and
deliver to outlet
Midvalley Megamall
Subway receives the
ordered stock at the
loading bay (level LG2) of
the complex
Subway
Order stocks transferred
to the freezer at the back
of the outlet
Subway
Prepares the bread dough
as per ordered by
customers.
Subway
End customers (eat-in or
take away)
Freezer temperature is not withinthe OPRP standard.Action : Ensure the freezer is
properly maintained, monitor the
temperature regularly
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Reduce time and cost to do corrective actions To ensure products meet end customers
demands (time, availability, quality,consistency)
To be able to compete in local/global market
To maintain good reputation of the brand
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