Mid

While stores are struggling to survive, capital continues to overweight
the food supply chain.
As a nationwide restaurant chain, it was not possible to purchase raw

food by Haidilao’s boss himself every morning in a farmer's market
anymore. Haidilao wanted the raw food to be delivered in a way that is
not only clean and safe but also highly effective for its restaurant
operation.
4.1. COST OF SUPPLY

The following are the top three strategic aims and objectives of Haidilao
supply chain management:
4.1.1. Ensuring Efficiency
For obvious reasons, one of the most crucial parts of supply chain
management is efficiency. While operational efficiency is critical,
efficiency between supply chain linkages is also critical. Managing
inventory, transportation, and logistics effectively may be a difficult task,
especially when transporting food supplies.
4.1.2. Optimizing Transportation and Logistics
Supply chain management requires that your process "flow" and that your
suppliers, manufacturers, distributors, and retailers are all on the same
page at all times. Visibility is critical to achieving this supply chain
management aim. This enables you to organize efficient transportation
and logistics operations with any vendors or customers with whom you
operate. Having insight into your own operations allows you to predict
when you will need to acquire extra material and when your items will be
finished and ready to ship to retailers.
4.1.3. Focusing on Quality Improvement
As previously stated, the primary purpose of the supply chain is to
manufacture things and deliver them to customers. It is critical to
remember that the aim is to give consumers the very greatest value
available, not just a product. This is a goal that you and your supply chain
partners should share. It is difficult to make a high-quality product while
employing low-quality materials and parts. The quality of your products
and services should increase considerably as you try to develop your
connections with your supply chain partners.
4.2. QUALITY OF SUPPLY
It was no longer feasible to get raw food directly from Haidilao's employer
every morning at a farmer's market because the company was now a major
international restaurant chain. Haidilao originally asked for assistance
from the company that handles McDonald's and KFC's logistics in order
to set a high standard for food quality and safety. Later, Haidilao formed
a business devoted to satisfying its high-standard logistics and supply
requirement, instead of utilizing third parties to provide the services. All
Hai Di Lao locations are directly controlled and share a centralized
distribution network, which increases the business model's scalability and
ensures consistency in both the quality of the cuisine and the service.
Franchises are not permitted. According to corporate policy, all
ingredients are procured, cleaned, and processed before being packaged
and supplied to the various branches in accordance with demand
projections from each branch. To maintain low inventories and guarantee
high-quality items throughout its 130 locations, Hai Di Lao uses a fairly
standardized and data-driven supply chain management system, in
contrast to the majority of local Chinese restaurant chains.
4.3. SUPPLY RISK
The Company recruits multiple high-quality suppliers focusing on major
considerations such as geographical risk and product characteristics to
avoid or minimize the supply risks brought by a single supplier. We give
priority to international and domestic leading enterprises in livestock
breeding, production and processing. For new suppliers, Haidilao will
conduct onsite inspection or evaluation when conditions permit, and
finally confirm whether to cooperate. As Haidilao expands its restaurant
network in Vietnam, there are a lot of possible humps in the road. The
supply chain must be properly considered and prioritized. One is that as
the business grows, it is more difficult to control safety concerns.
During the supplier acceptance review, the Company requires all

suppliers to provide three-in-one business license (including industrial
and commercial business license, organization code certificate and tax
registration certificate), and industry-specific qualification certification
depending on their respective product categories. The Company
implements a one-vote veto system for suppliers who fail to pass the
certificate review or factory inspection. For instance, Xiabuxiabu
Catering Management Holdings Co Ltd's stock price fell last year as a
result of a viral video showing a rat discovered in the company's hotpot
soup. As the number of outlets increases, Haidilao must make sure that
stringent safety regulations are followed.
4.3. TECHNOLOGY
In order to ensure food safety, enhance the eating experience for
customers, and standardize processes, Haidilao has been using some of
the most recent technology. In 2012, it was one of the first businesses in
the sector to utilize tablets as the main method for clients to place orders.
The ordering procedure has become faster and more accurate thanks to
the tablets, which also provide a foundation for extra, customized client
services.
The "Haidilao Super App" was introduced by Haidilao in 2018, and it
offers users a better eating experience by allowing them to reserve tables,
place delivery orders, redeem credits, and engage with other users and the
community. As of the end of the year 2019, Haidilao had 54.73 million
members. Additionally, the business developed a smart restaurant in
Beijing with automated food preparation tools that enhanced food safety,
decreased employee headcounts, and improved service efficiency.
In 2019, other innovations were also produced. Three new-technology
restaurants, including the first one outside of China, were launched by
Haidilao. Robotic arm automated serving rooms and direct dish delivery
from central kitchens are being promoted and tested on a modest scale.
Some restaurants have used intelligent soup base production equipment,
enabling customers to sample customized hot pot soup based in Haidilao.
More than a thousand robot waiters have also been adopted by the firm to
improve the eating experience for its customers. More than 500 Haidilao
restaurants throughout the world have installed kitchen cleaning
equipment, which makes labor easier and improves guest service.
Additionally, In order to serve customers who want to enjoy Haidilao hot
pot at home, it created online stores on both e-commerce platforms and
its own official website. Once a customer places an order, a waiter will
come to their house at the scheduled time with the meal, soup, and all
necessary utensils, including the hot pot. Simply inform Haidilao when
completed, and the waiter will return to assist with all the cleaning tasks
and remove the dinnerware.
VI. LEAN : An
The lean strategy, which is commonly utilized in the hot pot firm, leads
to enormous achievement in the catering industry.
All of the workforce at Haidilao, like the streamlined manufacturing, is
well-trained with standard guidelines that include very explicit and
thorough instructions to manage their conduct. Workers are well taught
and spend their time wisely under these conditions, dealing with the many
needs of clients.
→ They are able to minimize the waste of needless services while
increasing the value they provide to each consumer.
It is clear that the service is efficiently passed forward at each stage.
Customers are handled with respect from the start, which lowers
unexpected waiting times. Customers who are enjoying their meal may
easily approach any waiter to meet their demands. And, before departing,
consumers continue to enjoy the complimentary special services, which
adds more value to the service chain because customers have a positive
impression of the entire evening.
While you wait for a table, you may enjoy free manicures, shoeshine,
internet access, a free chess game, free food and beverages, and so on. As
a result, people are neither bored or furious, and they have something to
do. When you finally got a seat, servers would give you cell phone
protection bags. Of course, the cuisine is of high quality. Haidilao
virtually always meets every customer's needs. The exceptional service
draws an increasing number of individuals, and it is now widely
recognized that Haidilao gives exceptional service.

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While stores are struggling to survive, capital continues to overweight

the food supply chain.

As a nationwide restaurant chain, it was not possible to purchase raw

4.1. COST OF SUPPLY

During the supplier acceptance review, the Company requires all

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