Burger King uses cloud platform to strengthen global supply chain
A fast-food giant is banking on cloud-based applications to support its global supply chain, and keep operating expenses in check.
Burger King is extending its long-time partnership with SAP, and adding the company’s cloud-based procurement applications and business network. The combination will create a digital network that will more efficiently manage company spending throughout its supply chain.
Burger King is kicking off the project in Korea, where it added SAP’s business suite (S/4HANA) comprised of an operational database system and cloud-based computing platform, as well as SAP’s cloud-based procurement and supply chain platform. Using the solutions together, the company can quickly draw meaningful insights from its supply chain data, and use this information to make more intelligent decisions that will “propel their businesses forward,” according to SAP.
With the solutions installed, Burger King now has a single, integrated platform that will consolidate and control spending across all major categories, including direct, indirect and logistics to contingent labor and services, travel and capital expenditures. With analysis and insights into company-wide spending, the company is also primed to make better buying decisions.
Employees can use the digital platform to buy what they need, and stay in line with company policies. Meanwhile, real-time data enables users to transition payables from liabilities into strategic assets, a move that will boost cash flow, free up working capital, and deliver more bottom-line value.
The digital platform will also enable the company to better manage supplier relationships information, lifecycle, performance, and risk all in one place. It will also create a digital conduit to transact with qualified suppliers to support cost objectives, and align with corporate sustainability goals and ethical standards. This real-time collaboration will also enable Burger King to negotiate savings and make sure those savings are realized, SAP reported.
NRF: Tariff ‘wild card’ threaten retail imports
The threat of escalating tariffs is putting a damper on the otherwise healthy retail marketplace and has caused retailers to up their import orders.
Imports at the nation’s major retail container ports are expected to remain strong this month after setting three new records this summer, according to the monthly Global Port Tracker report released by the National Retail Federation and Hackett Associates.
“More tariffs could come any day, and retailers have been bringing in record amounts of merchandise ahead of that in order to mitigate the impact on their customers,” said NRF VP for supply chain and customs policy Jonathan Gold said. “Retail sales are growing stronger than expected this year thanks to tax cuts and job creation, but tariffs are the wild card that threaten to throw away a significant portion of those benefits.”
The current boom in shipping can primarily be explained by importers’ response to the U.S. trade war with China, according to Hackett Associates founder Ben Hackett.
“Consumers appear to be spending money on goods ahead of the tariff price increases that will eventually come,” he said. “But there could be a rocky road ahead as the impact of tariffs begins to be more fully felt.”
Ports covered by Global Port Tracker handled 1.9 million twenty-foot equivalent units (a TEU is one 20-ft.-long cargo container or its equivalent).
In July, the latest month for which after-the-fact numbers are available. That was up 2.8% from June and up 5.6% year-over-year.
August was estimated at 1.92 million TEU, up 4.8% year-over-year. September is forecast at 1.83 million TEU, up 2.4%; October at 1.88 million, up 5%; November at 1.79 million TEU, up 1.7%, and December also at 1.79 million TEU, up 3.6%.
August was the third month in a row to set a new record for the number of containers imported during a single month, following July’s 1.9 million TEU and June’s 1.85 million TEU. The previous record of 1.83 million TEU was set in August 2017.
The first half of 2018 totaled 10.3 million TEU, an increase of 5.1% over the first half of 2017. The total for 2018 is expected to reach 21.4 million TEU, an increase of 4.4% over last year’s record 20.5 million TEU.
Global Port Tracker, which is produced for NRF by the consulting firm Hackett Associates, covers the U.S. ports of Los Angeles/Long Beach, Oakland, Seattle and Tacoma on the West Coast; New York/New Jersey, Port of Virginia, Charleston, Savannah, Port Everglades, Miami and Jacksonville on the East Coast, and Houston on the Gulf Coast.
C-store tailors store-level assortments with customized planograms
The parent company of convenience store brands such as Red’s, Two Chicks, and Luigi’s Pizzas & Subs, is offering customer-centric assortments across all of its stores.
GPM Investments, which operates more than 1,200 company-operated convenience stores across the Mid-Atlantic, Midwestern, Northeastern and Southeastern United States, is partnering with JDA Software to create planograms for specific store formats and brands. By analyzing customer needs, GPM can now customize planograms for each store and style of fixture.
Using a range of JDA Category Management solutions, the company creates localized, actionable shelf plans that are specific to each store, and customized to customer needs based on store sales and trending information. With JDA, GPM no longer relies on vendors to provide the planograms for their products and stores. Instead, the company now creates, maintains and supports multiple versions for each location.
Within 14 weeks, GPM has quadrupled the number of planograms that it can support. The company also has the flexibility to create and maintain store-specific planograms, and can publish the plans with increased speed and accuracy.
“GPM Investments is off to a very strong start with a quick implementation that will give them the visibility they need into shopper habits and buying trends to create the right mix of shelf and floor plans that exceed their customers’ expectations,” said Terry Turner, president, North American retail, JDA.