Subway IP Inc. is a private American fast food restaurant chain
headquatered in Milford, Connecticut. Subway has 44758 stores in 112 countries.
Subway has 621 stores in India. Subway was founded by Fred DeLuca along with Dr.
Peter Buck as a submarine sandwich shop in 1965. By 1972 the duo began to
franchise the Subway brand. Subway ventured into India in 2001 by opening its
first store in India at Saket, New Delhi and expanded to Chennai, Bangalore and
Hyderabad in 2003.
to continuously evolve the menu of great tasting, nutritious options and
provide access to nutrition and healthier lifestyle information
Subway ensures the highest quality and safety standards of food for their customers
to Find sustainable and cost-effective
solutions that serve the business needs of our franchisees
Subway’s focus is on sustainability initiatives on energy
efficiency, water & resource conservation, sustainable sourcing, waste
reduction and supply chain management
Subway encourages their franchisees to contribute to
their communities, promote diversity and choose “environmentally
friendly” options and business practices
Subway restaurants are known for serving fresh, great
tasting food and good nutritional choices to fast food customers around the
world. Franchisee owned Independent Purchasing Cooperatives or Companies (IPCs)
are responsible for procuring our delicious products and ingredients as well as
the equipment, supplies and services used in the restaurants. Subway ensures
high quality of food and food safety by its sustainable practices by streamlining
their supply chain.
Food Quality and Safety
Subway prioritizes food
quality and food safety the most. They aim to consistently meet the highest
quality standards in all stages of supply chain. The suppliers have to meet the
Vendor Code of Conduct.
Subway provides details
product specifications and inspects samples from the supplies. Third party
audits take place at all approved facilties of Subway for food safety like
HAACP- Hazard Analysis and Critical Control Point and GMPs – Good Manufacturing
Practices. The farms are also audited for Good Agricultural and
Harvesting Practices. HPP – high pressure pasteurization is a test
used in Subway audit process to improve freshness, food safety and eliminate
the dependence on chemical preservatives.
Hygiene is also
practiced by the workers at Subway stores. All Sandwich makers are used to follow
hand washing procedures to ensure proper handling of food. Products are kept at
proper-holding-temperatures. This ensures proper shelf life management of inventories
in the store
Subway is committed to working with suppliers
to continuously improve the welfare of the chicken that are being used in the
products through many avenues like breeding, bird activity, housing
environments and harvest methods. The supply chain is committed to continual
improvements based on scientific research. The suppliers are evaluating
alternative breeds with the objective of further improving the welfare of the
animal during its lifecycle while still delivering safe, quality, great tasting
food our customers demand in a way that minimizes the environmental impact.
Subway continues to work closely with our suppliers to identify alternative
breed that can be incorporated into our supply chain. Subway also uses
best practices in animal breeding like improved housing, improved harvesting
and verification methods
Housing. The suppliers
are raising broiler chickens, so they are kept comfortable in a controlled,
cage-less environment which helps them to protect. They also ensure room for
the animals to move and ensure constant access to a nutritionally complete diet
and water. It is also ensured that fresh air ventilation and periods of light
and dark are proper. Suppliers already have in place enhancements to birds’
living environment like improved lighting, litter management and added
enrichments such as perches and hide boxes
harvest methods: In order to
support proper animal husbandry and harvest method, suppliers use industry
standard harvest methods. By 2024, broiler chickens in North America will be
processed only by using a controlled or low atmospheric stunning or controlled
atmospheric killing as well in Canada.
3rd Party Verification. In U.S., meat
suppliers are audited by PAACO (Professional Animal Auditor Certification
Organization) certified auditors to ensure they meet animal welfare standards.
Also, all chicken products come from chickens raised without antibiotics (RWA)
which will be USDA Processed Verified in 2017. This verification will be
expanded to include the continuous improvements in animal welfare practices
outlined in ISO 34700 as they are implemented.
Palm oil sourcing:
One of ingredients in Subway’s food products
oil that is used due to its high quality and desired baking characteristics. The
use of palm oil supports initiative to eliminate Trans fats. Currently, palm
oil is used an ingredient or processing aid in some products. The RSPO (Roundtable
on Sustainable Palm Oil) formed in 2004 promotes the growth and use of
sustainable palm oil products through credible global standards.
Over the past several
years Subway has worked with our approved suppliers to improve the
sustainability of the palm oil used in its products and eliminating it from
recipes where feasible. All of the Subway’s approved suppliers purchase the
palm oil used in products from RSPO members.
sourcing of Subway is to extend and support principles of responsible farming
and fishing and want to help ensure the long – term sustainability of the
earth’s natural resources by inculcating best animal husbandry, fair labor
practices and sustainable agricultural & manufacturing practices.
Vendors commit to complying
with fair and proper animal husbandry practices, maintaining Good Agricultural
Practices and Good Manufacturing Practices audits for food safety while adhering
to the Gold Standard Food Safety and Quality Policy. Subway uses a combination
of internal and external third-party audits to ensure our standards are met and
to protect the suppliers, distributors, restaurant operators and the customers.
Working with the
franchisee-owned Independent Purchasing Cooperatives, the Subway brand looks
for vendor partners who share our values and commitment to environmental and
social responsibility and continually work with them to improve the
sustainability of our products. The purchasing strategy includes female and
ethnic minority suppliers, wherever possible, in all aspects of the supply
chain. In the U.S., Subway purchases over $100 million of products from
minority suppliers annually.
With tens of thousands of restaurants
throughout the world, Subway aims to make its Supply chain as efficient and
sustainable as possible. Many of the vendors and suppliers have worked add or
move locations closer to the distributors and have established re-distribution
centers, thus reducing shipping costs and emissions. Subway has a Distribution
Operational Efficiency program that looks for ways to ensure all travel routes
and driving techniques are optimized and trucks are shipped full to further
reduce mileage. In 2007, Subway introduced a process in the U.S. that
consolidates all equipment orders into one shipment for new and remodeled
restaurants, eliminating excess packaging and unnecessary waste at the building
site, it has now been expanded to Latin America.
The product range of Subway is partly standardised and
partly customised to the needs of the local market.
The following are the products
in Indian Subway stores
Subway’s has also achieved complete
transparency in its supply chain visibility. The high level of transparency in
a supply chain will allow the company to track its goods at various stages in
the supply chain. This reduces the complexity in deciding critical factors for
inventory management and order cycle.
In order to improve the visibility
in supply chain of Subway, it has used four step processes. Tracing by use of a
lot code to track the good from bottom to top of supply chain is the important
factor in improving the visibility. The item information is embedded on the
goods. The information is efficiently managed by Subway by sharing the
necessary information with the vendors. The partners of supply chain have contributed
to improving and implementing this process using GS1 standard.
identifiers: Subway allocates a GTIN –
global trade item number to all its products. The vendors for Subway also
follow the same to their products. To improvise business transaction of goods,
vendors use a barcode on their products. The information related to that item
are stored in a centralized data server. The barcode holds the GTIN which is
the key to access the product specific information. They also use GLN- Global
location number to assign code to the locations of the supply chain facilities
product data network: Subway has
implemented a system to aggregate whole of its supply chain identifiers data at
once place by use of GSDN- Global Data Synchronization Model. The product
information is stored in a network or cloud. Both vendors involved in supply
chain of Subway and Subway can access the data and information about the product
from the network. The vendors and Subway have gained by increasing the accessibility
to information. This translated to increase in traceability of the supply chain
and has reduced the cost of handling and transporting the products to the desired
Labelling: Subway standardized the use of bar code by
using GS1-128 labelling. The use of these bar codes was made mandatory to the
suppliers. The Bar code label is the key to accessing the information about the
product. This improved the speed at which the inventory was tracked. It also became
more reliable method.
Integration: To attain a solution
for enhanced traceability, Subway partnered with FoodLogiq, to increase
traceability of the product. FoodLogiq created a platform that can synchronizes
the product data with GDSN and can allow the partners in supply chain to access
the information about the products. This allows Subway to trace a product from
the initial manufacturing stage to all the way till it is sold at the Subway
Overall efficiency of the supply chain of Subway received a facelift by
the implementation of Information technology in the supply chain management.