Layer 2 of 3DRAFT v3

Supply Chain Framework

7 governance domains (D1–D7) defining how ByteBurger's supply chain is organized and governed. Each domain maps directly to the Model's 8 primitives.

Framework Overview

The 7 governance domains and their relationship to the Model

Domain	Governs	Model Elements Covered
D1 — Demand Management	Understanding, anticipating, and responding to customer demand	S8 (Availability), Demand Profile, S2 (F8 revenue)
D2 — Inventory Governance	What to hold, how much, where, and when to replenish	S5 (I1–I13), S6 (C1, C3), S7
D3 — Sourcing & Supplier Mgmt	Find, evaluate, select, contract, and manage suppliers	S1 (N1–N3, N6), S2 (F1–F3, F5–F7, F9), S6, S7, S3
D4 — Procurement & Ordering	Execute buying — requisition, approval, order, pay	S2 (F5, F6, F7), S6 (C4, C6)
D5 — Logistics & Receiving	Physical movement, receiving, tracking, transport	S2 (F1–F4, F6, F9), S3, S6 (C5, C7, C8), S7
D6 — Operations & Transformation	Production, prep, equipment, quality, training	S4 (T1–T6), S5 (I12, I13), S6 (C2a–d, C9, C10), BOM
D7 — Performance & Risk	Measure, monitor, improve, and protect	S8 (metrics), all Composites, all Constraints

Decision sequence: D1 → D2 → D3 → D4 → D5 → D6 → D7 → back to D1 (continuous improvement loop).

Demand Management

How we understand, anticipate, and respond to customer demand

Model foundation: S8 (Availability), Demand Profile, S2 (F8 revenue, customer information)

D1.1 — Demand Channels

Channel	Characteristics	Visibility	SC Impact
Walk-in	Unpredictable, real-time, no advance notice	Low	Requires ready inventory and fast transformation
Delivery App	Slightly more predictable, digital orders before prep	Medium	Short prep lead time; packaging consumption increases
Catering / Pre-orders	Known volume in advance, larger quantities	High	Allows planned production; reduces waste

D1.2 — Demand Forecasting

Method: Simple rolling average with adjustment — average daily sales for the same day-of-week over the past 4 weeks, adjusted for known events or seasonal factors.

Inputs: historical sales data, day-of-week patterns, seasonal patterns (Oct–Mar higher in GCC), known events (holidays, Ramadan), delivery app trends.

The forecast will always be wrong. The goal is to be wrong by a small, manageable amount. Safety stock (D2) absorbs the remaining error.

D1.3 — Demand Monitoring

Pace tracking: Compare actual sales at midday against forecast. If 20%+ above by lunch, trigger additional prep for dinner.

Stockout alerts: Flag immediately when any ingredient drops below quantity needed for remaining forecasted demand.

Channel shift: If delivery orders spike, packaging (I10) may deplete faster than planned.

Inventory Governance

How we decide what to hold, how much, where, and when to replenish

Model foundation: S5 (I1–I13), S6 (C1, C3), S7 (lead times)

D2.1 — Replenishment Rules

ROP = (Average Daily Usage × Lead Time in Days) + Safety Stock

Inv Category	Replenishment Logic	Safety Stock
I1 — Fresh (1–5 day life)	Order frequency depends on item shelf life, aligned with C5	Minimal — excess = waste
I2 — Frozen	Order in larger batches; lead time 1–2 days local	Moderate — longer shelf life
I3 — Purchased Refrigerated (14 days)	Aligned with usage rate and shelf life	Low
I4 — Ambient Short (1–2 days)	Order daily or every other day	Minimal — freshness paramount
I5 — Refrigerated Long Life	Order weekly or bi-weekly	Comfortable
I6 — Staged Thawed	Staged internally from I2	Minimal — over-staging = waste
I7 — Ambient Long Life	Order monthly or bi-monthly	Comfortable
I8 — Finished Goods Resale	Order weekly; long shelf life	Comfortable
I9 — MRO Equipment	Replaced on failure or scheduled lifecycle	N/A
I10 — MRO Consumables	Order weekly or bi-weekly	Moderate
I11 — MRO Spare Parts	Critical on hand; non-critical on failure	Binary: 1 or 0
I12 — Working Stock	Prepared internally from I1, I3–I6	Minimal — over-prep = waste
I13 — Work-in-Progress	Exists only during active cooking	N/A

D2.2 — Inventory Staging Rules

Movement	Trigger	Timing	Quantity Rule
I2 → I6 (Frozen → Thawed)	Daily production forecast	End of shift, day before use	Next day's forecast + 15% buffer
I1 → I12 (Fresh → Working Stock)	Start of shift prep	Before each service period	Forecast for period + 10% buffer
I3,I4,I5 → I12	Start of shift prep	Same as above	Forecast-driven
I8 → Cooler	Stock drops below serving level	Throughout day	Refill to capacity

D2.3–D2.8 — Supporting Governance

Section	Covers	Key Rule
D2.3 Waste Management	Daily expiry check, FIFO, waste logging	Every discard recorded: item, qty, reason
D2.4 Stock Accuracy	Cycle counting by SKU classification	Target: 98%+. Discrepancies investigated before correction.
D2.5 SKU Classification	Value × Movement 9-cell matrix	HV/HM = tightest control; LV/LM = lowest attention
D2.6 Inventory Valuation	FIFO costing aligned with physical FIFO	Monthly valuation report by category
D2.7 Loss & Damage	Waste, damage, theft, admin errors	Shrinkage target: below 2% of inventory value
D2.8 Storage Layout	6 zones: freezer, fridge, dry, cooler, back, kitchen	Every item has a designated, labeled location

Sourcing & Supplier Management

How we find, evaluate, select, contract, and manage suppliers

Model foundation: S1 (N1–N3, N6), S2 (F1–F3, F5–F7, F9), S6 (C4, C5, C7), S7, S3

D3.1 — Qualification Criteria

Criterion	What It Checks
Legal compliance	Valid trade license, food handling permits, halal certification (GCC)
Quality standards	Product samples, consistency, certifications (HACCP, ISO)
Capacity	Can the supplier meet volume consistently?
Delivery reliability	On-time history, frequency options, proximity
Financial stability	Stable enough for long-term supply?
Payment terms	Credit period, payment methods, early payment discounts
MOQ compatibility	Does MOQ fit storage (C1) and usage?
Delivery schedule	Aligns with receiving window (C8: 7–10am)?

D3.2 — Supplier Categorization

Category	Definition	Examples	Management
Critical	Single/limited-source for core items	Meat, bun supplier	Close relationship, backup, weekly monitoring
Important	Support operations, alternatives available	Produce, dairy, beverage	Monthly monitoring, 1–2 alternatives
Routine	Easily replaceable commodities	Cleaning, packaging, sachets	Price-driven, minimal relationship
Service	Non-material services	Equipment maintenance, pest control	Contract-based, annual review, SLA-driven

D3.3 — International Sourcing

Incoterms: FOB (buyer pays freight from port), CIF (seller pays freight/insurance to destination), DDP (seller handles everything to door).

Landed cost = purchase price + freight + insurance + duties + broker fees + local delivery.

D3.5 — Supplier Performance Monitoring

Metric	Target	Frequency
On-Time Delivery Rate	95%+	Every delivery
Quality Acceptance Rate	98%+	Every delivery
Order Accuracy	99%+	Every delivery
Lead Time Consistency	Within ±1 day	Monthly
Responsiveness	Qualitative	Quarterly
Contract Compliance	Full compliance	Quarterly

D3.6 — Supplier Communication Governance

Forecast sharing: Critical suppliers get weekly demand forecasts. Important get monthly volume estimates. Routine get no forecast.

Expected supplier info: Advance notice of price changes (2 weeks minimum). Proactive disruption alerts. Delivery confirmations after PO.

Payment governance: ByteBurger targets 100% on-time payment. Early payment discounts utilized when cash flow allows.

Returns & credits: Supplier must agree to accept return. Credit documented and tracked until resolved. Every return counts against Quality Acceptance Rate.

Procurement & Ordering

How we execute the buying cycle — from need identification to payment

Model foundation: S2 (F5, F6, F7), S6 (C4, C6). D3 decides who and on what terms. D4 executes the buying.

D4.1 — The Procurement Cycle

Step	Action	Trigger	Output
1	Need identification — inventory hits ROP or specific need	Inventory monitoring	Purchase Requisition (PR)
2	Approval — PR reviewed against budget and thresholds	PR created	Approved/rejected PR
3	Purchase Order (PO) sent to supplier	Approved PR	PO sent (F5)
4	Supplier confirms fulfillment	PO received	Confirmation (F6)
5	Goods received — inspected, accepted/rejected	Physical delivery	GRN (Goods Received Note)
6	Invoice matching — three-way match: PO vs GRN vs invoice	Invoice received	Matched → approved for payment
7	Payment per agreed terms	Approved invoice	Payment (F7)

D4.2 — Authorization Thresholds

Order Type	Authorization	Rationale
Below routine (standing orders, consumables)	Auto-approved	High frequency, low value, pre-negotiated
Above routine, within budget	Shop manager	Budget compliance and need validation
Exceeds budget or non-standard	Owner / senior management	Prevents overrun
Emergency orders	Shop manager + documented justification	Speed + accountability

Logistics & Receiving

How goods physically move, how they are received, tracked, transported, and insured

Model foundation: S2 (F1–F4, F6, F9), S3, S6 (C5, C7, C8), S7

D5.1 — Inbound Logistics (Local)

Step	What Happens	Rules
Delivery arrival	Supplier vehicle arrives during window	C8 window (7–10am). Outside = refused unless pre-arranged.
Receiving inspection	Inspect against PO: items, qty, quality, temp	Temp check for I1, I2, I3, I5, I6. Reject above threshold.
Documentation	GRN completed, discrepancies recorded	GRN refs PO. Damage logged (D2.7).
Put-away	Goods to correct storage per D2.8	FIFO maintained. Items labeled with receipt/expiry date.

D5.4 — Outbound Logistics

Channel	Process	Quality Rules
Walk-in (dine-in)	Assembled at counter, served directly	Served within 2 min. Temperature maintained.
Walk-in (takeaway)	Packaged for transport	Packaging integrity.
Delivery app	Packaged, handed to driver	Temperature maintained. Sealed bag. Handoff within wait time.

D5.6 — Insurance

Type	Covers	When Required
Goods in transit (int'l)	Loss/damage during international shipping	All international shipments
Goods in transit (local)	Loss/damage during delivery or pickup	Supplier delivery: supplier covers
Stored inventory	Loss from fire, flood, theft, equipment failure	Business insurance
Equipment	Damage/breakdown of MRO equipment	Critical equipment specifically covered
Liability	Third-party claims from food safety/delivery	Required by regulation

Operations & Transformation

How we manage production, preparation, equipment, quality, and staff training

Model foundation: S4 (T1–T6), S5 (I12, I13), S6 (C2a–d, C9, C10), BOM

D6.1 — Production Workflow

Stage	Activity	Constraint
Pre-shift prep	Thaw beef, chop veg, portion sauces, count buns	C9 (staff)
Grill (T1)	Cook thawed patties	C2a
Fryer (T2)	Deep fry fries	C2b
Toasting (T3)	Toast buns	Grill/toaster
Assembly (T4)	Assemble burger from components	C2c
Pass-through (T5)	Stage drinks/sachets to counter	Near-zero lead time
Bundling (T6)	Combine into combo with packaging	C2d

D6.4 — Quality Management (6 Check Points)

Point	Checked	Standard	On Failure
Incoming (D5)	Temperature, freshness, packaging	Cold chain: ≤4°C fridge, ≤-18°C frozen	Reject. GRN. Notify supplier.
Storage (D2)	Temperature, FIFO, shelf life	In range. No expired items.	Remove expired. Escalate.
Prep (D6)	Freshness, cleanliness, portions	I12 passes visual/smell. BOM portions.	Discard. Re-prep.
Cooking (D6)	Temperature, time, appearance	Patty ≥74°C. Fries golden. Bun toasted.	Discard. Re-cook.
Assembly (D6)	Correct components, presentation	Every BOM component present.	Reassemble. Coach staff.
Service (D1/D6)	Speed, accuracy, temperature	≤12 min. Correct order. Hot food hot.	Remake. Track in D7.

D6.5 — Staff Training Areas

Area	Covers	Frequency
Food safety & hygiene	HACCP, hygiene, cross-contamination, temperature, allergens	On hire + annual
Receiving & inspection	Inspect deliveries, GRN, discrepancies, temp checks	On hire + SOP changes
Storage & FIFO	Put-away, FIFO, labeling, storage zones	On hire + quarterly
Equipment operation	Safe use of grill, fryer, toaster, fridge, POS	On hire + new equipment
Emergency procedures	Equipment failure, emergency ordering, fire, power outage	On hire + semi-annual drill
Waste management	Waste logging, expiry checks, disposal, FIFO	On hire + SOP changes

Performance & Risk Management

How we measure, monitor, improve, and protect the supply chain

Model foundation: S8 (availability metrics), all Composite Phenomena, all constraints as failure points

D7.1 — Key Performance Indicators

KPI	Target	Frequency
Menu Availability Rate	98%+	Daily
Item Fill Rate	99%+	Daily
Order Cycle Time	<12 min avg	Per order
Quality Compliance	99%+	Daily
Waste Rate	<5% of inventory value	Weekly
Supplier On-Time Rate	95%+	Per delivery
Supplier Quality Rate	98%+	Per delivery
Forecast Accuracy	Within ±15%	Daily
Budget Adherence	Within 5%	Monthly
Equipment Uptime	99%+	Daily
Stock Accuracy	98%+	Per count
Shrinkage Rate	<2%	Monthly
Inventory Turns	By category	Monthly

D7.2 — Risk Register

Risk	Prob.	Impact	Mitigation
Critical supplier failure	Low	Critical	Backup supplier. 3–5 day buffer.
Equipment breakdown	Med	Critical	Preventive maintenance. Spares. 4-hr SLA.
Refrigeration failure	Low	Critical	Temp alarm. Emergency SLA. Insurance.
Demand spike	Med	Moderate	Safety stock. Pace tracking. Emergency orders.
Customs delay	Med	Moderate	Order ahead. Larger buffer. Air freight backup.
Staff shortage	Med	Moderate	Cross-train. Reduce menu. Pre-prep more.
Food safety incident	Low	Critical	Quality checks. FIFO. Temp monitoring. Recall.
Power outage	Low	Critical	UPS for refrigeration. Generator. Emergency closure.
Theft / shrinkage	Low-Med	Moderate	Cycle counting. Loss tracking. Investigation.
Insurance lapse	Low	High	Annual review. Calendar reminders.

D7.3 — Continuous Improvement

Cadence	What's Reviewed
Weekly	Daily KPIs. Below target = root cause + corrective action.
Monthly	Supplier performance, spend, waste, forecast accuracy, stock accuracy, shrinkage.
Quarterly	Supplier categorization, SKU classification, contracts, equipment lifecycle, insurance.
After-incident	What happened, why, impact, what changes. Update Risk Register.

Framework Summary

Element	Count
Governance domains	7 (D1–D7)
Demand channels	3
Replenishment rules	13 (per inventory category)
Staging rules	4
SKU classification	9 cells (Value × Movement matrix)
Supplier qualification criteria	8
Supplier categories	4 (Critical, Important, Routine, Service)
Procurement cycle steps	7
Quality check points	6
Training areas	6
KPIs	13
Risks registered	10
Review cadences	4 (weekly, monthly, quarterly, after-incident)

A Framework that fits the Model will make good plans easy to create and execute. A Framework that contradicts the Model will make every plan a struggle.