BY: JOAN CORDOVA

POINT OF
VIEW
Supply Chain Management
of Taco Bell
 STATEMENT OF THE
PROBLEM

How will Taco Bell resolve

its supply chain issues due
to nationwide food
ingredient shortages?
 OBJECTIVES
To alleviate Taco Bell's inflation problems.

To strengthen Taco Bell’s supply chain.

To satisfy menu demands and avoid menu disruptions caused

by food ingredient shortages.

To avoid delivery delays due to food ingredients shortage.

 STRENGTH:
• Encourages healthy eating by
AREAS introducing trans-fat-free meals
OF and reducing sodium
CONSIDERATION
SWOT ANALYSIS
 STRENGTH:
• Creative Limited Time Menus.
AREAS • Maintain affordable pricing as
OF compared to other fast-food eating
CONSIDERATION joints.
SWOT ANALYSIS • Maximizes the use of social media.
• Has an established name in the
international market.
 STRENGTH:
• Popular brand name with high
AREAS brand loyalty.
OF • Hygienic food preparation and
CONSIDERATION quick service.
SWOT ANALYSIS • Taco Bell has more than 7000+
stores worldwide.
 WEAKNESSES:
• Few dessert choices.
AREAS • Slow expansion program, don’t
OF have many outlets.
CONSIDERATION • Associated with low-quality food.
SWOT ANALYSIS • Reliance on beef.
• The American approach to selling
Mexican food.
 WEAKNESSES:
• High competition means limited
AREAS market share growth for Taco Bell.
OF
CONSIDERATION
SWOT ANALYSIS
 OPPORTUNITIES:
• Offer desserts and/or kiddie meals.
AREAS • Open more outlets globally.
OF • Complete as a healthy but
CONSIDERATION affordable food store.
SWOT ANALYSIS • Introduce home delivery in a big
way can boost Taco Bell’s
business.
 OPPORTUNITIES:
• Venture into newer markets
AREAS especially emerging economies.
OF • New flavors and new recipes
CONSIDERATION specially focused on health friendly
SWOT ANALYSIS ingredients can be introduced.
 OPPORTUNITIES:
• Intensify marketing strategy on
AREAS social media to let people know
OF that Taco Bell has high-quality
CONSIDERATION food.
SWOT ANALYSIS
 THREATS:
• New researches and the raised
AREAS awareness among the public about
OF the harmful health impacts of fast
CONSIDERATION food consumption is a threat to
SWOT ANALYSIS Taco Bell’s fast food menus.
 THREATS:
• Threat from other eating
AREAS joints/restaurants. The proliferation
OF of competitors offering affordable
CONSIDERATION and tasty meals.
SWOT ANALYSIS
 Alternative Courses of Action
1.
1. STRENGTHEN SUPPLY CHAIN MANAGEMENT
Advantage:
Due to problems with the company's supply chain, Taco Bell's food prices increased. Taco Bell was
affected by supply chain issues because of the nationwide labor shortage and low inventory during the
COVID-19 pandemic. As a result, they experienced supply chain interruptions. The chain is out of
ingredients, according to the company. They have menu changes and delivery delays as a result, which
makes their customers anxious.
To solve this, the business should expand its alliance and strengthen their supply chain management,
since Taco Bell's sole partner is only Restaurant Supply Chain Solutions (RSCS). To prevent another
instance of inflation, Taco Bell should manage their supply chain during unforeseen events like COVID-
19. This has the benefit of optimizing company-owned inventories, enhancing the distribution system,
creating a supply chain council, and fostering positive supplier relationships. This can avoid food
ingredients shortage.
 Alternative Courses of Action
1.
1. STRENGTHEN SUPPLY CHAIN MANAGEMENT
Disadvantage:
Changing a supply chain management system takes financial investment, time and human resources.
If not implemented properly, there will be wasted labor, service redundancy, and missed deadlines that
result in significant costs.
 Alternative Courses of Action
1.
2. MAINTAIN AFFORDABLE PRICING
Advantage
Due to a food shortage, the company increased its food pricing. Taco Bell must maintain an
affordable price to remain competitive. There are other fast food restaurants that sell affordable food,
which poses a threat. Price is an important factor in food choice, especially for low-income consumers.
Low-income consumers were significantly more conscious of value and price. The most attractive
strategies, according to the consumers, were low prices and discounting food more often. The right
pricing approach is essential for the company.
Disadvantage
The disadvantages of maintaining an affordable price amid supply chain issues would cause a long-
term shortage of food ingredients. It will also affect the company’s income in the long run.
 Alternative Courses of Action
1.
1. INCREASE NUMBER OF SUPPLIERS
Advantage:
Taco Bell should increase their number of suppliers to avoid a food shortage for their company. If
there is a problem with one of the suppliers, the Taco Bell can contact other suppliers so that there is a
sustained supply of ingredients. Taco Bell should not rely on a small number of suppliers for its main
ingredients. Having multiple suppliers can improve supply distribution and greater dependency between
the business and the supplier. It also provides an incentive for suppliers to improve cost and service and
competition between suppliers also often provides the buyer with more bargaining power.
Disadvantage:
Multiple suppliers presents higher costs due to the management of more than one supplier.
 Recommendation

 Strengthening its supply chain management by

using the multiple supplier strategy to avoid
inflation issues, delivery delays, and food
shortages.
 Plan of Action

1.Applying the Multiple Supplier Strategy

2.Match Supply Chain and Business Line
3.Find The Right Suppliers that keep track of the
Supplies
4.Establish Alliances with Key Suppliers
5.Implement Supply Chain Software