Chipotle

Sec. 002 Team 1 GB 214 operations analysis Chipotle Mexi quite a little Grill Assignment 3 Supply Chain 1. major(ip) Components/Inputs of the Product & Suppliers Chipotle uses some(prenominal) suppliers when ordering and receiving their provender convergences. Chipotles chief(prenominal) nonsubjective is to bequeath nutrition with thoroughgoing and naturally grown primings. Because of these values, Chipotle prides itself in exploitation suppliers that follow their guidelines of food with integrity structure, by meeting the requirements and goals for food safety, fauna welf ar, sustainability, and social accountability. Chipotles client service manager, Shannon Kyllo, stated in her e-mail that the company continuously changes its suppliers to source the best ingredients and also provided a mention of their vegetable and dairy product suppliers. Calavo growers, Index Fresh and Mission Avacados give Avacados to Chipotle, and their Romaine lettuce and cilantro suppliers ar Taylor farms and Church Brothers. Daisy and Smith Dairy issue Chipotle with Sour Cream and the company gets its catering of cheese from Meister Cheese, Petaluma Cheese and Glanbia. Coca-Cola is Chipotles supplier for beverages and has had this contract since McDonalds were Chipotles main investors. 3 Also, the Mcilhenny Company supplies Tobasco as a condiment for Chipotle. 4 The industry leaders in Fast-food restaurant kitchen appliances are Southbend, Globe, Frymaster, Blodgett, Food Service Ware sept and Insigner. These companies are the top players who supply kitchen appliances to the major fast-food Chains, like Chipotle. 5 2. Type of Supply Chain and ServicesChipotles supply filament is unique from other fast casual restaurants and service firms, and does non have a narrow traditional supply chain. Of the four main supply chains, Chipotles supply chain resembles the Assemble-To-Order (ATO) supply chain the closest. This is because the customer has realise freedom of what ingredients go into their burrito/bowl/salad/etc. , still plainly with the ingredients that are behind the counter. So in that case, there is not complete freedom in designing a repast, but the customer can choose and amount of ingredients to be included in their food item.However, this is not set in stone, for their supply chain also contains elements of other supply chain methods, such as the Build-To-Order (BTO) supply chain, for the customer has some prospect in the customization of their product (meal), but are hold in to the design parameters (set ingredients) set by the firm. The stages of Chipotles supply are fairly simple. It starts with the acquisition of the knifelike materials (ingredients) that are shipped to one of their 22 independently owned diffusion centers. 6 These ingredients come from within a 350 mile radius of the distribution center.The ingredients are then shipped out to the restaurants, where all of the ingredients are prepared in-house with the exception of the barbacoa and the beans. one time the ingredients arrive at the restaurant, they are prepared and placed out fructify to be made into burritos/bowls/salads/etc. When a customer comes to a Chipotle, they simply wait in line, then once at the counter, go down the meeting line of ingredients and chose which specific ones they compulsion to include in their meal. When they are finished constructing their item, they pay the cashier and either take their meal to-go or have a seat in the dining cranial orbit in the restaurant. 3. Supply Diagram (See Attachment 1) 4. Supple Chain/ Operations Strategy Chipotle believes that their unrelenting effort to revolutionize fast food by means of their unique centering of production and people cultures will help them to persist forward in kinding a valuable company for their stakeholders. 6 Chipotle focuses on its product differentiation, market segmentation, operational excellence, and customer thing. 6 The product assemble r to customer stage in chipotles supply chain directly aligns with its focus on operational excellence and customer conversancy in its operations strategy. Chipotle explains their goal of operational excellence with its statement, The natural go down of our restaurant layout, including the floor plan and the design of our serving line, are designed to make the food ordering process intuitive and, we believe, more efficient. The customers sleep with somewhat directly with the manufacturers of chipotles product in their stores with the assembly line. 6 Customers have limited choice in overall product but some choice in the specification (ingredients that go in their order) of the product. The assembly line allows customers to get their food fast and assemble then limitedly build their order. 6 All of this allows for a eminent degree of customer intimacy during the service. 6 The raw materials to distributor to product assembler stages reflect with chipotles focus on product diffe rentiation and market segmentation. 6 Chipotles strategy is influenced by the fast and high caliber food market. 6 Chipotle states, Serving high quality food while still charging tenable prices is critical to our vision to change the centering people think astir(predicate) and eat fast food. 6 Chipotle serves food with integrity and part of the way they make this possible is with their supply chain. 6 The raw materials stage is the suppliers/outsourcers that provide the high quality ingredients that go into Chipotles product. 6 These go to distribution centers (distributor), which are all relatively close to the product assemblers (stores). 6 The food is then prepared by the product assemblers. 6 This allows Chipotle to have high quality, fresh food and makes them specialize in product differentiation. 6 5. Outsourced ActivitiesChipotle mentions that it currently sources most of its key ingredients like cowardly, pork and beef from a limited number of suppliers. 6 But at the kindred time chipotle ventured into local outsourcing in 2008 when they launched a pilot program to outsource all its natural pork products for its Charlottesville, Va. , location from a local supplier, Polyface farms. 8 They felt that apply local organizations to outsource would help them have fresh ingredients and tick that the single source follows their food with integrity motto. After the initial success of Chipotle, the executives realized that they had to improve one of their products the shredded pork which they used in nearly all their food items. 9 This is when Chipotle found an advertisement for the farmers of Niman Ranch, a pork supplying company. 9Steve Ellis took interest in this supplier by and by he sampled some of its organically grown products. 9 Chipotles spokesman, Chris Arnold, stated after Ellis tried the pork What so impressed Ellis, in addition to the quality of Niman Ranch pork, was the way in which the Calif. based company raised its animals, from a limentation practices to the land on which the hogs roamed. 9 The Niman Ranch experience completely changed the way Chipotle selected from their food suppliers, them having contracts with ranches in the Midwest for pork and livestock helped them cover a larger geographic region and facilitate the demand for Chipotle Mexican Grill. 9 Along with Niman Ranch, Canadian suppliers and duBreton Farms also supply pork to Chipotle. Most of the chicken on the menu is supplied by Bell & Evans of Fredericksburg, Pa. , which also supplies to natural and organic retailers like Whole Foods.Chipotle gets its beef primarily from Loveland, Colo. -based Meyer rude(a) Angus and Golden, Colo. -based Coleman Natural Meats, in addition to smaller processors. 9 6. Other Activities That Could Be Outsourced Chipotle produces several of their food products in house. After obtaining the necessary raw materials from outsourcing activities and suppliers, Chipotle then creates their key signature salsa, guacamo le, crispy tacos, and tortilla chips. 10 These items are produced at least twice a day (Harris). Chipotle chooses not to use a supplier or outsourcing accessory to make each of these products for specific and different reasons.For example, Chipotles salsa is made ingrainedly to ensure a unique customization process (Harris). 11 Because Chipotle offers 4 different flavors and raciness of salsa, Chipotle restaurants create their own salsa to offer customers a variety of choices that cannot be accurately duplicated by external outlets (Harris). 11 Guacamole is also prepared in house to provide Chipotles customers with the best flavor possible. Chips and crispy tacos are internally created for the same reasons. 12 Chipotle takes pride in freshly preparing these signature items as well.As famed by customer service agent, Shannon Kyllo, Chipotle creates these in house items because of CEO Elliss background within the culinary field and Chipotles strive to produce fresh food the way th ey see fit, stating, Were perfectionists. . . he Ellis is first and foremost a chef and he wants to maintain a high standard. . . They Chipotle have a saying that if you want to do something right, you have do it yourself so that is what we do (Kyllo). 13 Because of Chipotles internal processes, the restaurant chain believes it is producing the best and most unique experience at every location (Kyllo). 3 See Attachment 1 dally Cited 1. http//www. chipotle. com/en-US/talk_to_us/supplier/supplier. aspx 2. Shannon Kyllo. Supplier list. Email to Shrivats Agarwal. 22 Feb. 2012. 3. http//academic. mintel. com/display/294296/? highlight=truehit1 4. http//www. rehobothfoodie. com/index. php/Rehoboth-Beach-Reviews/Mexican/chipotle-mexican-grill. html 5. http//www. foodservicewarehouse. com/equipment/c3040. aspx 6. http//www. sec. gov/Archives/edgar/data/1058090/000119312511039010/d10k. htm 7. http//www. triplepundit. com/2011/06/chipotle-moves-local-sourcing/ 8. ttp//grist. org/sustainable- farming/protein-we-only-serve-white-meat-here-excerpt/ 9. Petrak, Lynn. Food With Integrity. field Provisioner 221. 9 (2007) 22-26. Business Source Premier. Web. 17 Feb. 2013. 10. http//angelagarbes. com/2011/03/01/food-with-integrity-short-on-humanity/ 11. Ronnette, Harris. Reply from Chipotle . gist to Cam Amoroso. 20 Feburary 2013. E-mail. 12. http//www. chipotle. com/en-US/menu/fresh_cooking/fresh_cooking. aspx 13. Shannon, Kyllo. Reply from Chipotle . Message to Cam Amoroso. 21 Feburary 2013. E-mail.