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Collins Foods
Collins Foods

Restaurant chains / Quick Service Restaurants

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Risks

1. Increased global competition: As more companies in the food industry become global, the pressure to compete increases and the need for supply chain efficiency becomes more important.


2. Food safety issues: Poor supplier selection practices, the presence of salmonella in ingredients, delays in delivering fresh food, and mistakes in production can lead to food safety issues and create major headaches for Collins Foods.


3. Rising transportation costs: With the increasing cost of fuel, transportation costs will continue to skyrocket. This can lead to higher operational costs and lower profits.


4. Disruptions to production processes: While Collins Foods has invested in inventory management and just-in-time (JIT) supply chains, any disruption in production due to natural disasters, economic downturns, or labour strikes can result in supply chain delays and added costs.


5. Unreliable supplier performance: If suppliers are unable to deliver the right products at the right time, then Collins Foods will have to face unexpected costs related to delays, lost sales and production cycles.


6. Loss of market due to inadequate technology: By not having the most up-to-date technology, Collins Foods may be at a disadvantage in terms of competitive advantage and speed in getting products to the market.


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