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SCM of KFC

1) The document discusses the supply chain management of Kentucky Fried Chicken (KFC), including its organization structure, layout design, demand forecasting, suppliers, logistics, storage, and inventory management. 2) KFC has over 18,000 outlets worldwide and uses a supply chain network of warehouses and company-owned vehicles to replenish branches with supplies like chicken, buns, and sauces three times per week. 3) Quality control, choosing new locations for adoption, and maintaining low wastage levels are some of KFC's key success factors in supply chain management.

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Shruti Gaur
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3K views

SCM of KFC

1) The document discusses the supply chain management of Kentucky Fried Chicken (KFC), including its organization structure, layout design, demand forecasting, suppliers, logistics, storage, and inventory management. 2) KFC has over 18,000 outlets worldwide and uses a supply chain network of warehouses and company-owned vehicles to replenish branches with supplies like chicken, buns, and sauces three times per week. 3) Quality control, choosing new locations for adoption, and maintaining low wastage levels are some of KFC's key success factors in supply chain management.

Uploaded by

Shruti Gaur
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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SUPPLY CHAIN MANAGEMENT OF KENTUCKY FRIED CHICKEN

Presented by :

Shruti Gaur (027)

Ekta Gupta (031)

STARTERS
Supply Chain Management Kentucky Fried Chicken Organization Structure Layout Design Demand Forecasting

SUPPLY CHAIN MANAGEMENT

Supply chain management (SCM) is the management of an interconnected or interlinked between network, channel and node businesses involved in the provision of product andservice packages required by the end customers in a supply chain. Supply chain management spans the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

KENTUCKY FRIED CHICKEN


KFC is a fast food restaurant chain which specializes in fried chicken and is headquartered in Louisville, Kentucky. It is the world's second largest restaurant chain overall (as measured by sales) after McDonald's, with over 18,000 outlets in 120 countries and territories as of December 2012. The company is a subsidiary of Yum! Brands, a restaurant company which also owns the Pizza Hut and Taco Bell restaurant chains.

ORGANIZATION STRUCTURE

LAYOUT DESIGN

KITCHEN

RESTAURANT

Process Layout U-Shaped Saves Time Reduced Motion Waste Reduced Accident Risk

Standardized Design Good Ambience Variety in Seating Arrangement Effective use of each CC

DEMAND FORECASTING
PROJECTION CHART Projection for each day of the week. E.g. Average of previous 6 Mondays considered for a Monday. Overall forecasting is done for per lakh consumption. It is calculated monthly based on the previous month. Exceptions are handled too.

MEAL
Supply Chain Management Suppliers Logistics Storage Inventory Management

SUPPLY CHAIN MANAGEMENT OF KFC


Step 1 Raw material procured from various suppliers and stored at two warehouses; the normal storage and the cold storage. Step 2 All the product preparation is done at the branch except for the marination of chicken and sold to customers at the branch itself or delivered at the desired locations. Step 3 Warehouses replenish each branch according to their requirement (usually three times a week) using companys own vehicles and drivers upon the request of the branch manager.

SUPPLIERS

Highly perishable items(Daily Supply)

Chicken Buns Sauces Spices and Herbs

Pepsi (Every alternate day) Fries Paper Packaging

LOGISTICS
Transportation vehicle at a specific temperature Zonal Distribution Specifications check on arrival Rejected Item mentioned in Invoice The team sends a mail within 24 hours The items are replaced within 48 hours

STORAGE
Stored at specific temperatures Special maintenance committee takes care FIFO usage pattern Items are kept in numbered rows

E.g. A1, A2 etc. And are taken off from the shelves in ascending order

INVENTORY MANAGEMENT

Farm to Fork

Receiving Storing Preparation Serving

DESSERT
Quality Control Key Success Factors Maintenance

QUALITY CONTROL

Surprise visits to branches Planned visits to branches Rigorous raw materials inspection Customer feedback

KEY SUCCESS FACTORS


Quality Service Cleanliness Satisfying the customers needs Choose new location that will adopt the product of KFC Wastage-1.5%-2% of total sales

MAINTENANCE

Own Maintenance Committee


30 + 15 days Employee Training Program Quality Control Check

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