Supply Chain Disaster

Supply Chains are known to be what keeps the company running efficient. Unfortunately, Subway's supply chain underestimated the demand for the limited reuben, which left the restaurants to turn away customers. The article discusses how Subway's supply chain didn't order enough rye bread from a supplier, ultimately leaving the food chains to run out of rye bread during the promotion of the reuben sandwich. This event occurred only 3 weeks into the 8 week promotion. Not only did the restaurants lack rye bread, but the corned beef started to dwindle. The shortage of the bread and meet created a decrease in revenue for Subway during that time.

http://www.subway.com/en-us

It's important for supply chains to estimate demand for a good; an overestimation can lead to chains getting stuck with, "millions of dollars-worth of excess ingredients" (Phillips). On the other hand, an underestimation can lead to a shortage in the good, like Subway's fiasco. A shortage leaves supply chains scattered as they attempt to find more suppliers to solve the crisis. Companies are shifting their supply chains to excel in demand estimation during special offers. This includes using software that use consumer data to better summarize future demands.

-Lauren Jankowski

Works Cited

Phillips, Erica E. “Hold the Rye: Promos Leave Restaurant Supply Chains Stretched.” The Wall Street Journal, Dow Jones & Company, 10 Nov. 2017, www.wsj.com/articles/hold-the-rye-promos-leave-restaurant-supply-chains-stretched-1510311601.