Reference no: EM133206923

Question:

Darden Restaurants imports millions of pounds of seafood annually. The firm achieves this via a complex outsourced network of vendors extending to 40 countries. Darden strives to "source the best suppliers globally" by examining import data and even using its existing network of vendors for referrals. After interest is established, Darden conducts a plant visit to determine the quality of the facilities. If the supplier becomes part of the network, Darden trains the supplier on how to comply with Darden's "cold chain" requirements, including the use of proper containers, gel packs, and temperature monitors. Darden seeks durable long-term relationships with suppliers, not necessarily choosing based on lowest cost.

Darden's standards are higher than most U.S. government standards, and it rejects certain shipments that the government would not, based on things like poor color and misshaped product, or anything that might suggest that something in the integrity of the cold chain might have been compromised. Why does Darden outsource its seafood? A primary reason is that many countries will not even grant fishing licenses to non-native fishermen. Furthermore, Darden is not in the seafood production business-it is in the restaurant business. But due to its massive scale, Darden can work directly with suppliers instead of middlemen, allowing the company to remove one layer of cost from the supply chain and in turn invest time and resources into ensuring the highest quality product possible.

Based on above case study/article, answer all of the following questions:

a) If Darden decision to outsources the seafood supplies globally, Discuss FIVE (5) items to consider before going to global.

b) Identify THREE (3) reasons for Darden decision going to global.