In order to function efficiently, each corporate organization or corporation needs excellent partnerships and communication among service providers. In its most basic form, the supply chain refers to the procedures that a business must follow to deliver goods or services to a consumer. By connecting industries and service providers, supply chain principles aid in acquiring raw materials, allowing the client to get more finished items. Varieties of tools are available to assist you in creating a supply chain plan. Any system we develop must consider our clients’ perceptions of value. Most of the weight is accounted for by cost differential and product or service innovation.
Cost or uniqueness will be the most crucial company strategy priority. After the organization’s plan has been formed, all supply chain decisions made must ensure that they support its strategy. This is a real-life scenario for the supply chain management.
Supply chain management attempts to look holistically at the entire supply chain from the supplier to the consumer in order to maximize value from all operations by addressing three primary areas: people, process, and systems.
Logistics refers to managing resource acquisition and commodity movement to their final destination. Logistics is used by manufacturers, retailers, distributors, the military, nonprofits, civil defense organizations, and public works departments. These organizations must be able to analyze their performance in order to ensure that their logistical efforts are effective. The performance priorities for logistics management are the goals that must be accomplished in order for the supply chain to function successfully. Among the goals are more outstanding customer service, stronger connections, higher sales, and increased efficiency. The most basic technique to measuring logistics performance is to use a currency-denominated efficiency metric. To analyze logistics success, companies look at the total amount of money spent on logistics-related operations and compare it to revenue from sales. If the costs of storage, fulfillment, shipping and other logistics components make for a small percentage of the total cost to customers, the logistics department is doing its job well. From this standpoint, this study examines and investigates fast food restaurant logistics and supply chain management, particularly during the Covid 19 limited epidemic.
A substantial amount of background information
Al Baik is a fast food restaurant chain in Saudi Arabia. Al Baik has a well-developed logistics and supply chain management strategy, which has helped it become one of the world’s most well-known businesses. In Saudi Arabia, AlBaik was the first to popularize the “Broast” chicken concept. Abu Ghazalah aimed to provide clean, affordable, fast food in a setting that appealed to Saudi Arabian consumers’ interests and tastes. In Saudi Arabia and around the world, the company’s management has made a name for itself. There are four pillars that are thought to be present: trust, respect, teamwork, and continuous progress. The company has been able to open a number of locations around the world solely on the basis of its fried chicken expertise (Khan, 2014). In terms of both the restaurants’ products and the brand’s impact on customers, the Al-Baik brand is extremely powerful. High quality, fair rates, rapid service, convenience, and corporate social responsibility are all hallmarks of the Al-Baik brand. This company’s management is always excellent at emphasizing these brand characteristics through various means of advertising, public relations, public relations, and distributing brand stories. The founder of Al-entrepreneurial Baik’s tale is well known, particularly how he attempted to infuse the culture and values he holds dear in the Saudi community’s notion of eating outside, which was strange and rare in Saudi culture until recently.
Their ability to encrypt their meal mode made this possible. They also conduct clandestine operations to increase the security of their operations (Khan, 2014). Al Baik has registered its name in a number of other countries to prevent its brand from being misused. Patrons also value the local brand’s humanitarian efforts, which include anything from community development to environmental awareness and contribute to its success. Al Baik is one of the top three brands in Saudi Arabia, according to the YouGov BrandIndex Customer Loyalty Ranking for 2020. It has already grown outside of Saudi Arabia, with two locations opening in Bahrain late last year, the first outside of the country, and Dubai in June. As Gulf foodies await the unique Al Baik experience, expect long lineups and highly sought-after dinners at these new venues.
The problem encountered in logistics and chain management.
Al Baik was founded in 1974 in Jeddah, Saudi Arabia, according to the company’s history. It now has roughly forty outlets in Jeddah. It began as a little fried chicken restaurant and has since grown to become the world’s largest fast-food corporation (Gamraoyi, 2016). To safeguard its brand, it has registered its name in eighty different nations (Khan, 2014). The Al Baik Company has increased its fried chicken menu since its inception in order to spice up fried chicken. Because it serves all types of customers, including middle- and low-income persons, this company has many customers. The difficulty of this company is that it does not make the predicted sales during the Covid 19 challenge, leading client loyalty to wane. Furthermore, achieving the 2030 goal, as well as relocating workplaces, would be costly. The Albaik Company, as we all know, imports chicken from other countries, such as Brazil, and collaborates with foreign vendors to provide the essential services and seasonings. The restaurant in Jeddah’s main purpose is to lower the cost of outside imports by importing locally, resulting in prompt delivery of raw materials (chicken and spices) at the best possible price. However, the company lost a significant amount of money in its first year of operation due to a lack of understanding of fried chicken principles and Covid 19 legislation. Only a few individuals purchase chicken from Covid 19 because of the restaurant’s low prices and social isolation. Customers have a hard time grasping the need to uphold and adhere to costly standards. The company appears to be experiencing costs due to current technical methods, which need significant financial investment. Other local and international competitor chain restaurants have a larger market share, and client base in the Middle East and worldwide, and competitors have better distribution networks.
Logistics and supply chain management software that is used.
Despite its great success, this organization still needs to improve its efficiency by implementing new logistics and supply chain thinking strategies ( Gamraoyi, 2016). There was no long-term structure for the Al Baik Company’s operations in the area when it was founded. In this line of employment, having a warehouse is really beneficial. This is due to the fact that the more changes they make to the inhabitants, the less efficient they become for their clients and formula followers. It can also be difficult to refer people from various countries to this institution. If they have a permanent warehouse, it will be easier for their customers to receive their products.
The cost of a door-to-door delivery should be factored into a buyer’s transportation budget. Various factors impact Saudi Arabia’s excellent logistics and distribution infrastructure supply chain management solutions. Transportation and logistics are used by fast food and beverage firms to organize their inventory and resources from one place to another. Major aviation, land transportation, and shipping networks serve Saudi Arabia well. Al Baik’s logistics are exceptional, making purchasing and supplying fast-moving food and beverage supplies and purchases straightforward, cost-effective, and convenient.
Al Baik Logistics employs supply chain management to keep track of stocks and fix issues that affect product quality and result in damage losses. Al Baik has introduced a shipping status application to keep customers up to date on the status of their orders (albaik 2019). (Albaik, 2019) To address the issue of logistics and inconveniences, Emirates Airlines has employed multimodal transportation, which combines logistics and transportation services. The multimodal integrated maritime and airport operations system for developing distribution networks across Saudi Arabia lowers logistical challenges. Customers from various lifestyles can readily access the products thanks to the procedures. The restaurant’s cleanliness, rapid service, and escape design contribute to Al Batiks’ excellent customer service. Even the busiest restaurant consumers receive the most satisfactory possible service since they usually know when and by whom they will be served.
Because any supply chain is susceptible to it, SCM systems can make application tool processing more accessible and efficient. These tools help with sales order processing, order management, order fulfillment, portraying, and cash order orders by processing orders.
Conclusion and explanation
We should be aware that the scope of logistics and how it is managed within the firm has a big impact on the company’s main goal: boosting customer happiness and loyalty while also growing income. Albaik Restaurant, the Company’s profitability, will improve if local suppliers replace offshore ones. Al Baik is investing in developing its supply chain management capabilities. As a result, there is not anything that can be done to change the situation. The company’s budget and the sensitivity to duplication should be its sole worries (Gamraoyi, 2016). Despite the covid 19 limitations, it is clear that the company has built effective supply chain management strategies and has enjoyed previous years of success. To maximize their company operations, every firm should be able to assess logistics and supply chain management and logistics performance priorities. They have also made transportation more affordable and convenient for almost everyone, making it more accessible to low-income people. Other businesses must lower their rates while also evaluating the probable outcomes to limit overall losses to compete for these two. Other companies must lower their prices to compete for these two while also considering the projected consequences.
References
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K. Gamraoyi, (2016). A thesis on the development potential of Saudi Arabian Airlines, the country’s flag carrier, was given to Massey University in Manawatu, New Zealand, as part of the Master of Aviation degree requirements.
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