Subway Restaurant has embraced the “green” initiative by tailoring its supply chain. This is to help the restaurant to reduce costs, emissions and remain competitive in service industry. This paper assesses the “greening” efforts that have been undertaken by the restaurant. It also explores the strategies that the business used to effectively embrace “green” supply chain. Lastly, the paper explores how transferability of Subway strategies can help other businesses to get more in their supply chains.
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Subway Efforts at “Greening” Supply Chain
Most organizations have strategies that lean towards reducing environmental pollution whereas improving their public image and maximizing on profit. Supply chain and its management practices is a solution which companies have relied on in embracing sustainability, thus reducing uncontrolled wastage( (Frazelle, 2000, p.105).Subway, a green restaurant, is one of the world businesses seeing the usefulness of supply chain hence using it in moving towards “Green” culture (Tina et al, 2009).
Efforts of Subway to clean its systems and reduce wastage, improve energy efficiency, conserve conservation and sustain provision of safer food have been realized as a strategy encouraging “greening”. All these efforts have been attributed to the fact that Subway has recognized the usefulness of green logistics and its continued transportation strategy.
The strategies employed by Subway in realizing “green” supply chain are anchored in its vision which says “Eat Fresh”. Subway has continuously embraced their vision whether if it is procuring a product locally or acquiring it onsite. Besides, corporate responsibility of the company recognizing “Freshness” has also emphasized the company’s initiative in recognizing “green supply chain” (Tina et al, 2009).
Subway believes that, acquiring produce locally enhances product freshness thus saving handling, transport costs and energy. The strategy of the company is that, if it succeeds in establishing a supply chain with broad, localized supplier base, it is quite evident that they will accrue concrete results. Besides, the “localized process will reduce carbon emission this will make Subway realize their critical long-term goal.
Subway Logistics Strategies Focusing on Green Supply Chain
A company moving towards green supply chain has to have precise strategies on how to accomplish their goals (Emmet & Soot, 2010, p.87). Subway for instance had clear and elaborate strategies before they embarked in transforming their supply chain towards “green supply chain”. One of the strategies was scoping the level of “green” strategy. Since initiating the strategy, Subway knew that the strategy should move towards reducing its carbon footprints thus contributing to eco-friendly environment (Tina et al, 2009).
The rethinking in aspects of logistics and purchasing played a major role because most of its products for sell are purchased. Further, Subway gave the responsibility of manufacturing footprints to suppliers hence helping in reducing energy and waste that makes larger percentage of its final products.
The second strategy that Subway embraced was computing a standard. Though several companies have a larger bandwidth and capacity to deal with green house gas emissions not attached to energy, in several supply chain, energy use is important (Tina et al, 2009). Subway took several measures in creating a carbon criteria basing on logistics. Some of the measures included defining carbon footprint, formalizing baseline results, focusing on warehousing and calculating energy consumption among other criteria (Frazelle, 2000, p.89).
The third strategy was defining the structure of sustainability supply chain. Having elaborate information on carbon footprint and standards for measuring green house gas, subway redesigned the structure of its sustainable supply chain and this resulted in more efficiency such as saving transports and shipment costs. To realize these benefits, subway considered carbon as a strategic cost, evaluated various options such as risk mitigation and network optimizations.
The fourth strategic option taken by Subway was incorporating carbon modeling into decision making. Subway embraced efforts that were tailored towards reducing emissions and improving asset utilization and optimization of service level. Subway helped to manage its supply chain by collaborating with suppliers.
The green initiative of Subway is entirely reliant on supplier development, whereas it does not embrace quantifiable declines; common working has improved complete supply chain. An important carbon reduction initiative was realized when a realignment of salad packaging was done. The firm salad packaging supplier relocated over 1,000 miles loser to distribution centers, this saved costs and reduced volumes of carbon (Emmett & Soot, 2010, p.47).
Lastly, Subway took advantage of transporting “two shades” of green. Transporting “two shades” means reducing the costs of fuel and emissions. To realize this strategy, Subway considered smart way partnerships and evaluated modal conversions. Modal initiatives employed by Subway such as; air to ground and ground to rail was applied on order to save fuel and reduce emissions Logistics Management, 2002).
Transferability of Subway Strategies
Strategies of enhancing supply chain towards “green” can be multiplied in other businesses that embrace sustainability. Subway strategies can bring along ore benefits such as reduced costs, minimal emissions and encourage sustainability (Frazelle, 2000, p.57).
For instance, retail businesses such as such as; McDonald’s food chain and Wal-Mart can increase its efficiency and reliability of their services at the same time promoting eco-friendly environment. Subway strategies will not only encourage “green” supply chain in most companies, but will create reliability and effective service delivery for businesses (Logistics Management, 2002).
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Subway restaurant has effectively utilized the “green “supply chain. Most businesses are embracing this initiative because of several reasons. Some of them include reduction of costs, enhances reliability and promotes eco-friendly environment. However, businesses implementing the strategy need to plan and assess the viability of the project to be assured of tangible results.
Emmett, S.,& Sood, V., (2010). Green Supply Chains: An Action Manifesto. New York: John Wiley and Sons
Frazelle, E., (2002). Supply Chain Strategy: The Logistics of Supply Chain Management. New York: McGraw-Hill Professional
Tina, F. Brown, T.& Stewart, E. (2009).Subway’s Journey to Green, Logistics Management (2002), Highland Ranch, Vol. 48, Iss. 4, pg. 22.