Company case by

Inverto, a BCG company

Inverto Case: Fast Dish Restaurant

Case information

Difficulty: Intermediate

Interviewer-led

< 100 Ratings

Times solved: 13.7k

Operations strategy Organizational behavior Pricing Profitability analysis

Case Prompt:

Fast Dish, a publicly traded Quick Service Restaurant (Franchise) company with over €20 billion in revenue and more than 20.000 restaurants globally, has recently faced major challenges with regards to supply chain management and sustainability.
The client's top management has engaged the SCM and procurement specialized consultancy Inverto to advise the company in this critical situation.

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Part I

An initial meeting with the CPO of Fast Dish will be conducted tomorrow. Fast Dish aims to discuss optimization potentials in the current collaboration with suppliers as well as levers to improve the supply chain resilience & carbon footprint.
Unfortunately, Fast Dish has only submitted the following data for the sub-category ‘Fryers’ in the category ‘Core Kitchen Equipment’ yet. The top-5 suppliers count for 80% of the annual spend.
For the initial meeting with the CPO, your Project Manager asks you to evaluate savings potentials. Which procurement levers would you suggest to further investigate under consideration of Total Costs of Ownership (TCO) (Definition: an estimate of all the direct and indirect costs involved in acquiring and operating a product or system over its lifetime)? What are potential risks that might occur considering the current supplier landscape?

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Part II

The CPO is enthused about the initial analysis and the saving potentials for ‘Fryers’. Nevertheless, he has doubts how to merge the optimization with Fast Dish’s ambition to reduce carbon emission by 50% by 2030 and to reach net-zero by 2050. In preparation, the CPO found the emission split data in a BCG report. Furthermore, a value chain emission definition is handed over to you. The CPO is curious about the impact of procurement on Fast Dish’s emissions and asks you to further explain how improvements in the supply chain (Scope 3 upstream) can support to reach the company’s carbon emission reduction goals. The CPO especially wants to know about changes of products, processes & organization in the sub-category of ‘Fryers’ that might lead to lower emissions.

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Read and understand the task.
Realize that the information of the exhibits isn´t necesserily helpful for the solution
Identify at least two bullet points per category and explain further as done below

Product:

Material sourcing, for ‘Fryers’ e.g.: Material switch, reduction of virgin material, higher share of Electric Arch Furnace Route (100% scrap), carbon free smelting
Demand reduction, for ‘Fryers’ e.g.: Usage of substitute products in the restaurants (oven, air fryer, etc.), reduction of CO2-heavy indirect material purchases, sustainable packaging (omission of unnecessary packaging layers)
CO2 optimized design, for ‘Fryers’ e.g.: Share of recyclables / scrap, material substitution, product substitution

Processes:

Logistics, for ‘Fryers’ e.g.: CO2 network optimization, Mode of transportation (avoid air cargo), usage of local sources, possibilities for compressed oil to reduce replenishment times
Renewables, for ‘Fryers’ e.g.: Buying green energy (e.g. Energy Attribute Certificates) or production of green energy (e.g. PV contracting on roofs) for production facilities
CO2 optimized manufacturing, for ‘Fryers’ e.g.: Processes optimization (e.g. usage of heat from production process), alternative processes (e.g. pressed parts instead welding)

Organization:

Governance, for ‘Fryers’ e.g.:Introduction of company-wide code of conduct to ensure sustainability-oriented collaboration with suppliers
Controlling the footprint, for ‘Fryers’ e.g.: Ambitious target setting with suppliers, constant progress tracking
Stakeholder engagement, for ‘Fryers’ e.g.: Regular supplier & OEM communication, external target communication

Note for Interviewer

The selection beneath covers the categories product, processes & organization and three potential procurement levers in the sub-category ‘Fryers’ in order to reduce the company’s carbon emission. The interviewee should be able to name at least 2 levers per category.

Product:

Optimize material sourcing
Challenge and reduce demands
Optimize CO2 design materials

Processes:

Optimize logistics network planning
Use renewable energies
Optimize manufacturing processes

Organization:

Implement code of conduct
Track and control carbon footprint/ set up governance
Engage all relevant stakeholders

Part III

Besides reaching the carbon emission goals, Fast Dish aims to strengthen the supply chain by strategically maintaining its resilience since labor shortages, global freight delays and increased logistic costs are putting the market under pressure.
In order to further investigate the supply chain, Fast Dish provides you a general overview of the current spend by supplier, country of origin and destination for the commodity ‘Kitchen Equipment’.
The CPO wants to conduct a Request for Proposal (RfQ) and is keen to know about your approaches to mitigate supply chain risks while increasing ecological sustainability. As main targets of the RfQ, the CPO mentions the potential introduction of new suppliers and the establishment of strategic partnerships with incumbent suppliers.
You are being asked to come up with approaches that a) strengthen the entire supply chain resilience, b) improve the company's carbon footprint and c) address both - supply chain resiliance and sustainability - at the same time.

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Part IV (optional)

Part IV does not count towards the 45 min case and can be solved if there is still time left.

The CPO received a request by a well-known german newspaper to participate in an interview. The interview topic refers to the geopolitical tension and how companies handle the increasing prices on the energy market. He hasn't had capacities to prepare for the interview, so he asks you to brainstorm potential approaches Fast Dish could take to mitigate the impact of increased energy prices.

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Question about

Error in exhibit

on May 05, 2023

Global

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