CostCo’s Farm-To-Table Rotisserie Chicken

CostCo’s Farm-To-Table Rotisserie Chicken

November 12, 2018

Costco is building a farm-to-table production system in Fremont, Nebraska, to manage both the supply and demand of its rotisserie chickens.

About 100 chicken farmers will sign a 15-year contract to raise enough chickens suited for the rotisserie.  Farmers are vertically integrated with Costco’s production system that consists of a processing plant, hatchery, and feed mill.

The production system can process two million chickens per week at full capacity, more than enough to meet Costco’s annual demand of 60 million rotisserie chickens.

This post is based on the NPR article, Costco Builds Nebraska Supply Chain For Its $5 Rotisserie Chickens, by Grant Gerloc, October 22, 2018 Image source: moodboard/Getty Images.

Discussion Question:

1.  What are the operational advantages of Costco’s farm-to-table production system for rotisserie chickens?

Guidance: Costco will be able to ensure a steady supply of chickens that are consistent in quality and size for the rotisserie.  Costco can also better control its supply and demand of rotisserie chicken

2. What is the significance of the supply chain integration for Costco’s rotisserie chicken?

Guidance: With a vertically integrated rotisserie chicken supply chain, enough chickens of the suitable size will be Continue reading

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Aisle of Lost Toys

Aisle of Lost Toys

After failing to emerge from Chapter 11 bankruptcy, the iconic toy retailer, Toys ‘R’ Us, is going to liquidate all its stores in the U.S..

The demise of Toys ‘R’ Us hits small toy vendors and makers especially hard as they may not be able to collect the $14 to $15 million owed.  The loss of a major specialty toy retailer like Toys ‘R’ Us also leaves toy makers without a mass distributor or a physical showcase for innovative toys.

This post is based on the Reuters article, ‘Exhausted’ Toys ‘R’ Us suppliers weigh options as huge retailer shuts, by Tracy Rucinski, Richa Naidu and Melissa Fares, March 17, 2018. Image source: Shutterstock / Marko Poplasen.

Discussion Questions

1. What are the impacts of the liquidation of Toys ‘R’ Us on the retailer’s suppliers?

Guidance: Discussion points include loss of a key downstream partner, loss of payment for goods shipped to the retailer, and the effort required to find new partners/mass distributors.

2. What are the impacts on the toy industry’s supply chain of liquidation by Toys ‘R’ Us?

Guidance: The many losses include loss of a mass distributor, loss of a physical showcase for Continue reading

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