Chapter 3 CASE 3.1 Jordano Food Products Supply Chain Profile Jordano Foods Trac
ID: 391494 • Letter: C
Question
Chapter 3 CASE 3.1 Jordano Food Products Supply Chain Profile Jordano Foods Tracie Shannon, Vice President for Logistics at Jordano Foods (Jordano), had just sent the following e-mail to members of the executive committee of the com pany: I just returned from a lengthy meeting with Susan Weber, CEO of SAB Distribu- tion. She is under great pressure from her Board of Directors to continue to grow market share and improve profitability. SAB has received a recent tender offer from another larger food distributor to buy the company and several members of their board have recommended that the offer be seriously considered. Susan feels that SAB can continue to improve their "bottom Hne" with additional changes in service offerings. Ms. Weber is meeting with all of SAB's major suppliers and customers to discuss new services that SAB can offer to enhance the competitive ness of the SAB supply chain Background On Jordano Foods Jordano Foods was founded in 1950 in Lewistown, Pennsylvania, by two brothers, Luigi and Mario Jordano. Their parents operated a restaurant in Burnham, Pennsyivania, featur- ing Italian cuisine. Marie Jordano was famous for her culinary skills. She developed her own recipes for pasta sauce, meatballs, fresh and dry pasta, and other Italian food items. Luigi and Mario worked in a restaurant prior to establishing Jordano Foods. The brothers felt that they could capitalize on the family recipes by selling pasta, sauces, and other related Italian food products to other restaurants in nearby communities in central Pennsylvania Their initial venture was so successful that they expanded their product line and began selling their products too small to medium-sized wholesalers and distributors throughout Pennsylvania. They built a plant in Lewistown to produce their food products and subse- quently built another plant in Elizabethtown, Pennsylvania, and a warehouse in Mechan- icsburg, Pennsylvania. Current Situation The 1990s and 2000s were times of significant growth for Jordano. Mario and Luigi were still active in the company as president/CEO and chairman of the board, respectively. Reve- nue now exceeded $600 million per year, and a third plant had been built in the western near Uniontown. A group of professional managers has been devel- in the company to head up the major functional areas. Tracie Shannon was hired in part of Pennsylvania 2010 to manage the logistics area which had not received much attention. Tracie realized that the Jordano brothers had managed and developed the manu- and marketing functions during the formative years, and these two areas had been considered as cornerstones of the company's success. Logistics was a relatively newExplanation / Answer
1. In my views, there is great amount of potential in the association of Jordano Foods with SAB. This is so because as per Susan Weber, the new business model of SAB has tremendous potential for all members of its supply chain. Jordano is also a member and hence can enjoy the various features of SAB’s new business model. Jordano Foods needs an established distribution center, to increase its market coverage and increase the overall connect with the customers. Hence, with this deal, Jordano can capitalize on the respected customer base of SAB and try to incorporate it with the company’s own customer base.
2. Jordano Foods can capitalize on the following aspects of logistics, in its association with SAB:
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