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SUBWAY - Logistic solution for central and eastern Europe
Benschová, Šárka ; Pernica, Petr (advisor) ; Grossová, Petra (referee)
Subway is the leading fast food franchise chain having over 29.700 branches in 87 countries and differentiating itself among other fast foods by serving healthy food. The chain's focus for further development is concentrated on the countries in Central Europe (Czech Republic, Poland, Hungary and Croatia) and its 47 branches. However, the concept of supply chain in this region is disunited and leads to unfair high costs and high requirements from the branch management. Therefore there is an urgent need to unite the logistic system. The idea is that all the branches in the region will keep two or three local suppliers providing delivery of vegetables, drinks and local specialties; other goods will be distributed by single logistics company in the form of consolidated supply. The new logistic concept for provision of availability of products needed for proper work of all Subway branches in Central and Eastern Europe in context of integration, unification and simplification of logistic chains and its effective management is suggested in the work from the logistic service provider point of view. The task is solved in three parts -- transportation of goods from the producers to the warehouse, its delivery to individual branches, and warehouses itself including the cost calculations. The analysis of supplier's location and the location of supplied branches conclusion follows on locating the warehouse unit near Prague. The kinds of goods could be divided into frozen, cooled, dry and non-food goods. The consumption of individual kinds of goods is specified and the process of supplying the warehouse, means of transport, number of drivers, consolidation on distribution routes and its frequency is suggested. The supply of 47 branches will be done with special means of transport with combined shipping space enabling separate transport of individual kinds of goods by using the mobile screens; on 5 routes always between 7:00 to 23:00 in every country on the same day. The warehouse is a key place for delivery consolidation according to the needs of individual branches in accordance with FIFO principle. About 70 different articles of goods are stocked in three parts; respectively in truss racks with longitudinal filling with capacity of 168 pallet spaces in the height of 4 pallets. The manipulation is provided by low-lift and high-lift trucks. The limit warehouse is rectangular with the area of 122.4 m2, Monthly cost are 485,- Kč for pallet space, the costs in the frozen and cooled warehouse are higher by 15,-Kč per pallet space, that is 500,- Kč. The total costs to supply all the Subway branch restaurants in the whole region is the total sum of costs for good acquisition, its transfer from suppliers to the warehouse, warehouse operations and distribution of goods to individual branches.
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