Darden to overhaul supply chain

As Darden Restaurants Inc. works to staunch slipping sales at its big Olive Garden and Red Lobster brands, the nation’s largest casual-dining company continues to employ newer technologies to beef up the bottom line.

Darden, through automation of its supply chain, expects in the long term to save USD 40 million to USD 45 million annually, said Darden spokesman Rich Jeffers, who emphasized that the initiative is ongoing. Darden, which has revenues of about $8 billion annually, spends more than USD 3 billion on capital and food products each year.

“It’s a complex, multi-year initiative that began in 2010 and will take several years to complete,” Jeffers said in an email interview with NRN. “We continue to make good progress, but we’re not ready to offer a definitive completion date.”

The initiative is wide-ranging, from changing the way the company handles inventory in its distribution centers to adopting the most recent standards in supply-chain management.

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