By Rich Weissman
I am not a customer of Chipotle and honestly I have never eaten in one of their restaurants. When I crave those Tex-Mex flavors I head to one of a few local places in my area. Chipotle has certainly been in the news recently, what with the E. coli outbreak on the West Coast and the norovirus outbreak at a location in the Boston area that sickened many Boston College students. Their business is certainly taking a hit.
But my thanks are misguided. I should be thanking Business Week for their article on Chipotle and its supply chain issues that contributed to the outbreak. In this article we got to peak behind the curtain to learn about just how complicated the supply chain is for this restaurant chain. We also learn about how marketing decisions drive operational decisions that drive supply chain decisions that drive economic decisions. Ultimately, these decisions drove medical decisions. Cycle of life, I guess.
The pressure on our supply chains has never been greater. Yes, we speak about relationships, flexibility, and cost management. Conversations with our prime suppliers may be wonderful and enlightening, but cost savings, leadtime reductions, and other operational decisions come with a cost. And those costs, both economic and human, get amplified throughout the supply chain. Call it the bullwhip effect of pain. The savings have to come from somewhere, and we learn in this case they came from shortcuts.
Where is the pain in your supply chain?
Endicott College Assistant Professor Rich Weissman teaches management courses for the School of Business and the Van Loan Graduate School. He is also the director of corporate education, which includes the Center for Leadership, Endicott’s management development institute. He is vice chair of the planning committee and also serves on the technology committee and the Institution Review Board. A practitioner turned educator, Weissman has more than 25 years of experience in all facets of procurement and supply chain management. He has held positions with large business units of Fortune 500 companies, medium-sized contract manufacturing companies, small venture-backed Internet startup firms, and third-party procurement, consulting and strategic sourcing firms.
Rich holds an M.S. in Management from Lesley University and a B.A. in Economics from Rutgers University. He is past president of the Purchasing Management Association of Boston and a recipient of the Harry J. Graham Memorial Award, the highest honor bestowed by the association.
Source One Management Services
Attention, fleet managers: Have you ever spent an entire week tracking down personal mileage from your drivers to calculate employee fringe benefits? Do you have any high risk drivers and would like to understand their driving patterns? Do you dread … Read More
Purchasing and supply chain professionals must be aware of and strive to improve their emotional intelligence. A definition of emotional intelligence is the capacity to be aware of, control and express one's emotions and to handle interpersonal rela… Read More
Do we need to wait until technologies and automation address operational needs to free up the time for (paraphrasing Kraljic) Purchasing to become Procurement? The answer is “no.” Good Procurement – efficient and effective – for the foreseeable futur… Read More
Staples Advantage is the one supplier that offers all the business solutions you need, all with the expertise of a specialty vendor. Read More
It started in 1972 with an idea, a new concept in distribution. Today, Digi-Key Corporation is one of the fastest-growing electronic component distributors in the World. The stimulus for this growth is Digi-Key's customer-centered business philosophy… Read More
Procurement and supply management leaders have a seat at the table, and management’s expectations are high. But what do CEOs really want, and is purchasing delivering on these expectations? This webcast looks at how procurement and supply management … Read More
At world-class companies, purchasing’s influence touches just about every area of spending. But, how exactly do procurement teams get to the point where other departments approach them for help with sourcing such indirect categories as human resource… Read More