Kfc Supply Chain Management 4n243u

SUPPLY CHAIN MANAGEMENT OF KFC

KFC’S HISTORY Kentucky Fried Chicken is a fast food restaurant chain headquartered Kentucky, United States, which specializes in fried chicken. was founded by Harland Sanders. with the first franchise opening in Utah in 1952. KFC operates more than 15,000 restaurants around the world today.

KFC IN PAKISTAN

KFC Pakistan started in 1997 with its first branch in Gulshan e Iqbal. KFC won the title of market leader at that time. It has 64 outlets located nation wide.

WHAT IS SCM?

Supply chain management is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage.

SUPPLY CHAIN OF KFC

KFC’s supply chain can be summed up in 3 process: First, raw material is procured. All product preparation at the branch. Warehouses replenish each branch according to requirement.

SCM

WAREHOUSING

KFC has its warehouses in both North and South regions of the country. Northern central warehouse is in Lahore. Southern central warehouse is in Karachi.

WAREHOUSES

PROCUREMENT Planning of monthly budgets. Supply of chicken by K & N’s.(…… Unilever provides sauces. Spices and herbs are imported from Dubai and Singapore. Packing material Bread and buns. Potatoes for French fries. Other items

PROCUREMENT

STORAGE AND INVENTORY Storage of chicken, spices and herbs, bread and buns.

INVENTORY

ZONAL DISTRIBUTION

ZONAL DISTRIBUTIONS

Distributions on need basis.(JIT) Karachi is divided into 3 zones. Daily vehicles are dispatched from the Southern Warehouse to these Zonal areas.

QUALITY ASSURANCE Surprise visits to branches Planned visits to branches Rigorous raw material inspection Customer .

SOFTWARE Kfc uses the Supply Chain Management Software to manage its inventory. This was developed by Siddhat Haider. Physically the inventory is counted to tally with the figures in software.

COMPETITIVE ADVANTAGE KFC is well known for the ingredients it uses. KFC has kept emphasizing that its chicken is different (when compared to competition). Colonel Sander said their chicken is “entirely different but still tender and tasty”.