Dive Brief:
- Checkers & Rally’s is partnering with distribution services provider McLane Company in an effort to improve operational efficiency and control costs, according to a July 2 press release.
- The fast food chain plans to utilize McLane’s distribution center network, which features more than 80 facilities across the U.S., as it expands its own footprint.
- Shifting to a single distribution partner will “enhance our distribution system, strengthen our operations, provide our guests with unparalleled service and value and set the company up for long-term success,” Christopher Ward, chief supply chain officer for Checkers & Rally’s, told Supply Chain Dive in an email.
Dive Insight:
Checkers is joining a growing list of restaurants and retailers that are turning to outside distribution and logistics partners. For many companies, determining whether to handle supply chain logistics and operations internally or turn to a partner often comes down to a battle of cost versus control.
Levi Strauss & Co. recently shifted to a hybrid model that incorporates third-party providers within its distribution logistics network. The jean-maker made the move to reduce fulfillment costs and free up capital to invest in its direct-to-consumer channel.
Similarly, The Singing Machine Company traded in its in-house logistics operation by partnering with third-party logistics provider Logistics Plus last year. The company embarked on what CEO Gary Atkinson called a “massive undertaking” to cut costs.
By partnering with McLane, Checkers expects to streamline its distribution operations while “creating substantial savings” across its more than 800 locations, Ward said. In addition, the fast food chain also plans to leverage McLane’s services to target more consistent on-time deliveries, as well as improved order fill rates and cold chain logistics operations.
McLane operates a fleet of nearly 4,000 tractors and 7,500 trailers on top of its distribution center network, according to its website. The company, which was founded in 1894, also provides inbound freight logistics, backhaul, redistribution and export services.
Checkers has been updating its leadership team as it makes changes to its supply chain. The fast food chain brought in a new CFO and chief marketing officer at the end of 2023, while CEO Frances Allen will step down from her position in September.
