HEFU-NOODLE: CENTRALIZED KITCHEN’S COLD CHAIN
DISTRIBUTION SYSTEM CONSIDERING PRE-WAREHOUSES
CASE STUDY SOLUTION
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pl
SYNOPSIS
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Sa
Hefu Catering Management Co. Ltd. (Hefu) was founded in 2012 as a high-end Chinese noodle chain brand.
Its mission was to promote Chinese culture through Chinese fast food on a global scale. In 2018, Hefu
experienced significant demand growth. To ensure a steady supply of safe, fresh, and organic foods, Hefu
n
established a centralized kitchen in Nantong, Jiangsu Province, serving 300 restaurants in nearby cities. As
Hefu expanded into North and Central China, it faced challenges in delivering fresh food from the
tio
centralized kitchen to meet the demands of all its restaurants.
lu
So
OBJECTIVES
• Understand the pros and cons of self-built and rented pre-warehouses for Hefu.
• Understand the opportunities and challenges faced by a fast-growing, direct chain firm.
• Consider and discuss the implementation of pre-warehouses in fast-food direct chain firms.
The Case Solution Starts From page 4
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pl
m
Sa
ASSIGNMENT QUESTIONS
1. What was unique about the Chinese style fast-food industry?
2. Why was Hefu considering pre-warehouses? What were the pros and cons of pre-warehouses?
3. What were the pros and cons of self-built vs. rented pre-warehouses for Hefu?
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4. What challenges did Hefu face in its information system integration in terms of the pre-warehouse option?
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5. What other considerations were associated with Hefu’s pre-warehouse option?
6. What were Hefu’s future considerations?
7. How would Hefu strengthen its development in the future based on the three-tier supply chain?
lu
So
The Case Solution Starts From page 4
, ANALYSIS
1. What was unique about the Chinese-style fast-food industry?
Chinese Cultural Elements
Chinese-style fast food contained reasonable nutrition and aligned with Chinese public eating habits and
consumption levels, making it the mainstream choice in China’s fast-food industry, accounting for
approximately 90 per cent of the total market. It was projected to remain dominant in China’s fast-food
industry for the foreseeable future. The restaurants were decorated with elements of Chinese culture
combined with local elements. The Chinese public believed that Chinese-style fast food catered to
e
consumers’ desire for a healthy diet, and this was a major contributing factor in the rapid expansion of the
Chinese-style fast food market.
pl
m
Operations
Sa
Supply chain operations in the Chinese-type fast-food industry could either be centralized or decentralized.
n
tio
lu
So
The Case Solution Starts From page 4
DISTRIBUTION SYSTEM CONSIDERING PRE-WAREHOUSES
CASE STUDY SOLUTION
e
pl
SYNOPSIS
m
Sa
Hefu Catering Management Co. Ltd. (Hefu) was founded in 2012 as a high-end Chinese noodle chain brand.
Its mission was to promote Chinese culture through Chinese fast food on a global scale. In 2018, Hefu
experienced significant demand growth. To ensure a steady supply of safe, fresh, and organic foods, Hefu
n
established a centralized kitchen in Nantong, Jiangsu Province, serving 300 restaurants in nearby cities. As
Hefu expanded into North and Central China, it faced challenges in delivering fresh food from the
tio
centralized kitchen to meet the demands of all its restaurants.
lu
So
OBJECTIVES
• Understand the pros and cons of self-built and rented pre-warehouses for Hefu.
• Understand the opportunities and challenges faced by a fast-growing, direct chain firm.
• Consider and discuss the implementation of pre-warehouses in fast-food direct chain firms.
The Case Solution Starts From page 4
, e
pl
m
Sa
ASSIGNMENT QUESTIONS
1. What was unique about the Chinese style fast-food industry?
2. Why was Hefu considering pre-warehouses? What were the pros and cons of pre-warehouses?
3. What were the pros and cons of self-built vs. rented pre-warehouses for Hefu?
n
4. What challenges did Hefu face in its information system integration in terms of the pre-warehouse option?
tio
5. What other considerations were associated with Hefu’s pre-warehouse option?
6. What were Hefu’s future considerations?
7. How would Hefu strengthen its development in the future based on the three-tier supply chain?
lu
So
The Case Solution Starts From page 4
, ANALYSIS
1. What was unique about the Chinese-style fast-food industry?
Chinese Cultural Elements
Chinese-style fast food contained reasonable nutrition and aligned with Chinese public eating habits and
consumption levels, making it the mainstream choice in China’s fast-food industry, accounting for
approximately 90 per cent of the total market. It was projected to remain dominant in China’s fast-food
industry for the foreseeable future. The restaurants were decorated with elements of Chinese culture
combined with local elements. The Chinese public believed that Chinese-style fast food catered to
e
consumers’ desire for a healthy diet, and this was a major contributing factor in the rapid expansion of the
Chinese-style fast food market.
pl
m
Operations
Sa
Supply chain operations in the Chinese-type fast-food industry could either be centralized or decentralized.
n
tio
lu
So
The Case Solution Starts From page 4
