Case Study on Subway

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At the age of seventeen, Fred Deluca decided to open a submarine sandwich shop as a way to help pay for his education of becoming a medical doctor. Dr. Peter Buck offered Fred a $1,000 loan and became his partner and 1965 the first Subway store was opened in Bridgeport, Connecticut. They learned through experience how to run a business, with the integrity of serving a high quality product, and providing excellent customer service. Today, Subway is the world's largest sandwich chain with more than 41,000 locations around the globe. The goal is to serve the highest quality foods, and make sure everything produced meets the safety standards from the time it is grown, to when it is put into a sandwich. To insure this, sustainable agricultural practices such as cover cropping, and crop rotation this restores nutrients and minimizes pesticide and fertilizer use. With thousands of restaurants throughout the world, subways supply chain needs to be sustainable and efficient in order to cut costs. Many vendors and suppliers worked with Subway to add or move locations closer to our distributors, and we have implemented many re-distribution centers which help reduce emissions, and provide lower shipping costs. Subway has a Distribution Operational Efficiency program that’s purpose it so find ways to ensure all traveling routes and techniques are optimized, and all the trucks are shipped with full loads to reduce mileage, and be as efficient as possible. Recently, Subway has introduced a process in the United States that consolidates all orders of equipment into a single shipment for new restaurants, and restaurants being remodeled. This helps eliminate excess packaging, and unnecessary non-value added activity at the building site. Subway...

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...re they do it correctly, it was the artist’s negligence and a waste of a fresh sandwich. Subway seems to be doing a fantastic job managing, but there is always room for improvement. There should be no returns as this greatly hinders the total productivity. There are minor tweaks that the management can make, but subway seems to have it down to a science. What it comes down to is the philosophy of which techniques to follow to help build the business. Over the past five years, Subway has had a consistent growth of revenue of about 2.3% a year. With the increase of raw material prices, and petroleum prices, costs have risen about 5-20%. As times get difficult with consumers, subway decided to absorb much of the increase in costs, and pass minimal hikes to the customers. Although they may be increasing in revenue, their profits are leveled off due to higher costs.

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