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SCM KFC
SCM KFC
KFC is the world largest and most well-known chicken restaurant, with chains in more than 10 thousand
locations and worldwide in 80 countries. KFC and its franchised employees are more than 200 thousand
in all over the world. John Y. Brown and Jerry Messy purchased KFC for USA for $2 million in 1964
that time KFC become a corporation. After five years, 2 Colonel buys first 100 shares of KFC. In 1986,
Pepsi Company purchased KFC. Pepsi Company changed the logo from Kentucky fried chicken to KFC
in 1991 and then in 1992 KFC 1000 the restaurant opened in Japan and in 1994 9000th restaurant in
china. KFC is the part of Tricon global restaurant. Tricon global restaurant is the world largest restaurant
group, with in nearly 100 countries around the world, which in turn was spun off in 1997, and has now
been renamed to Yum! Brands.
Supply chain management is the management of the flow of goods. It includes the movement and storage
of raw materials work in process inventory and finished goods from point of origin to point of
consumption. Interconnected or interlinked networks, channels and node businesses are involved in the
provision of products and services required by end customers in a supply chain management has been
defined as the designing planning control execution and monitoring of supply chain activates with the
objective of creating net value building a competitive infrastructure, leveraging worldwide logistics,
synchronizing supply with demand and measuring performance globally
The study of reports the findings of a research project which efforts to analyze the supply chain
management of KFC using the supply chain approaches.
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Supply Chain Management And Distribution
KFC denied. 2007 is the 20th anniversary of KFC (Kentucky Fried Chichen) into the world
market, the number of branches in mainland China have more than two thousand. Behind the
rapid development, efficient and smooth logistics system is a KFC a powerful weapon ahead of
the competition.
Supplier Management
KFC products are the main raw materials (Chicken, mashed potatoes, seasoning) determined by the head
office supplier, usually raw materials (bread, beverage puree, vegetables, packaging, etc.) by the district
level has confirmed that the suppliers. KFC a “star system (STAR SYSTEM)” a selection of alternative
suppliers, which is specifically for a global assessment of supplier management system in China since
1996, full implementation of the supplier. This assessment system consists of five areas: quality,
technical, financial, reliability, and communication. Every three to six months of regular assessment and
evaluation throughout the year were, from KFC’s technical department and the purchasing department
were assessed at the end of the composite score will determine the supplier of the volume of business in
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the next year in the share.
Inventory File
Every day before work, the staff of the provisions of the inventory of raw materials inventory and
registration. This data is the order quantity is essential calculations, this data can also be used for costing
the same day.
It is affected by supply-side arrival time. This time depends on the time of transmission
and processing orders, supplier response time of the order, the efficiency of distribution
centers.
Procurement Plan
Distribution Center branch of the restaurant received orders for processing, such as the number of
orders found abnormal fluctuations in a restaurant, the communication and confirm, the restaurant
orders must be received 15 points in the end of the afternoon, after ordering the distribution center
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personnel view existing inventory and shipment data are not revised order, the next day by email or
fax sent to the supplier, which according to the quantity and date for production and transportation to
distribution centers.
Distribution Planning
According to the distribution centers indicated by the restaurant’s order number and the required
raw material arrival time in the system, picking orders and shipments to generate summary tables,
pickers, picking, packing, shipping transportation officer under the distribution plan summary
arrangements, including: capacity approval, vehicle selection, delivery routes, transfer. The
assessment team through the delivery vehicle loading efficiency, punctuality rate of fuel
consumption and goods, safe rate were carried out.
By 1964, the colonel had tired of running the day to day operations of the business and was eager to
concentrate on public relations issue. He sold the business to two Louisville business people Jack Massey
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and John Young Brown, Jr. for $2 million.
During the next five years, Massey and Brown concentrated on growing KFC’s franchise system across
the U.S. in 1966 they took KFC public, and the company was listed on the New York Stock Exchange.
By late1960’s a strong foothold had been established in the United States, and Massey and Brown turned
their attention to international markets. In 1969, a joint venture was signed with Initsubishi shoji kaisha,
Ltd., in Japan, and the right to operate 14 existing KFC franchises in England were acquired. Subsidiaries
were also established in Hong Kong, South Africa, Australia, New Zealand, and Mexico. By 1971, KFC
had 2,450 franchises and 600 company owned restaurants worldwide, and was operating in 48 countries.
Conclusion
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In this conclusion and regarding the overall study of Supply chain management, it has been observed that
KFC in allover follows a similar pattern of Supply chain that enables it to reduce time involved to reach
end customers and reduce expenses in supply chain. Ultimately it is able to reach and fulfill its end
customers’ needs and wants at a reasonable or customer acceptable rates all over world. On the other
hand KFC has yet to prescribe a minimum living wage for its members’ workers Instead KFC audits
concentrate on ensuring that employers pay at least the legislated minimum wage and make the correct
payments into national social security funds The great majority of members were already compliant in
these respects and therefore, in most cases, KFC compliance does not increase costs of employing
workers. In short we can say the Supply chain management of KFC has a positive impact on profit
maximization by considering following:
1. KFC supplies ingredients to all its outlet by its own transportation network all over world.
2. KFC has no logistics partners they are self-sufficient and efficient to all logistic operation involved
in reaching the customers. KFC follows a periodic review system to keep track on all its inventory and
market demand.