Fast food wars: the power of knowledge in supply chain planning
Momen Youssef and Martin Thesling - December 9
Let me tell you the story of Burger Blitz and Happy Bites in a fictitious place called Luckytown. Burger Blitz has been a favorite fast-food spot in this small town of just 10,000 people, attracting locals with its quick service and familiar menu. But the manager recently learned that Happy Bites is opening a new branch half a mile down the road. Naturally, she’s concerned. What should she do?
Beyond classic marketing
Blog post
The typical marketing playbook would suggest a bold promotion: offering discounts or special deals during the rival’s opening week to lure customers away — a standard maneuver in the face of competition. However, Happy Bites' soft opening for select invitees was already a resounding success. The buzz it created would likely encourage many locals to give the new eatery a try.
But Burger Blitz’s manager had a different, more unconventional idea: what if she closed her restaurant for maintenance on the exact day of Happy Bites’ grand opening? If this maneuver could be kept a secret without upsetting her regulars, Happy Bites would be swamped with an unexpected surge of customers. Overwhelmed staff and insufficient supplies might lead to long waits, stockouts, and frustrated patrons. Complaints about poor service and disappointing experiences could spread rapidly, damaging Happy Bites’ reputation from the very start.
Blog post
Insights from supply chain strategy
While this approach is undeniably risky — and one I wouldn’t recommend — it demonstrates a shift in thinking from marketing tactics to supply chain strategy. The manager is betting on the ripple effects of disrupted demand and overburdened supply. However, this gamble could backfire, potentially angering Burger Blitz’s loyal customers and damaging their trust.
The scenario underscores the critical role of knowing. If Happy Bites had prior knowledge of Burger Blitz’s closure, they could prepare by bolstering inventory and staffing for the big day. While increased demand usually spells higher revenue, supply chain experts understand that unanticipated surges can lead to chaos, skyrocketing costs, and even a damaged brand image. Staying informed about external factors — and planning for them — can make or break a business.
Blog post
Knowing: a matter of survival
In today’s fast-paced world, managing global supply chains effectively is a complex task. Data must be collected, interpreted, and shared across an organization to ensure smooth operations. As markets become more unpredictable, businesses need to capture external signals and react swiftly. Scenario planning becomes indispensable, enabling companies to pull ready-to-execute strategies out of their sleeves when unlikely events happen, inside or outside the company.
This is where advanced supply chain planning solutions like OMP’s Unison Planning™ come into play. These solutions enable a two-way information flow across sourcing, production, distribution, and sales, ensuring agility and resilience. In the modern era, a company’s survival often depends more on supply chain control than on marketing efforts. After all, knowledge – and the ability to act on it – may be the ultimate competitive advantage.
Ready to unlock the power of external data for better supply chain planning? Learn how insights from the Spark Initiative can help your business become more agile, market-driven, and customer-centric.
Momen Youssef
Supply Chain Consultant
Biography
With wide-ranging experience in pharmaceutical supply chain, Momen currently helps customers get the most out of the OMP Solution as an implementation consultant for life sciences and consumer goods projects.
Martin Thesling
Regional Commercial Lead EMEA at OMP DE
Biography
With more than ten years' experience specializing in engaging in the tendering process, Martin has collaborated as a pre-sales consultant with prospective customers from a range of industries, including logistics, consumer goods, chemicals, and life sciences, before taking on his current lead role.
