scm of kfc

7/28/2019 SCM of KFC

1/22

SUPPLY CHAIN MANAGEMENT

OFKENTUCKY FRIED CHICKEN

Presented by : Shruti Gaur (027)Ekta Gupta (031)


2/22


3/22

STARTERS

Supply Chain Management

Kentucky Fried Chicken

Organization Structure

Layout Design Demand Forecasting


4/22

SUPPLYCHAINMANAGEMENT

Supply chain management (SCM) is the management of aninterconnected or interlinked between network, channel andnode businesses involved in the provisionof product andservice packages required by the end customersin a supply chain. Supply chain management spans themovement and storage of raw materials, work-in-processinventory, and finished goods from point of origin to point ofconsumption.


5/22

KENTUCKYFRIEDCHICKEN

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 PizzaHut and Taco Bell restaurant chains.


6/22

ORGANIZATIONSTRUCTURE


7/22

LAYOUTDESIGN

KITCHEN RESTAURANT

Process Layout

U-Shaped

Saves Time

Reduced Motion

Waste

Reduced Accident

Risk

Standardized

Design

Good Ambience

Variety in Seating

Arrangement

Effective use ofeach CC


8/22

DEMANDFORECASTING

PROJECTION CHART

Projection for each day of the week.

E.g. Average of previous 6 Mondays consideredfor a Monday.

Overall forecasting is done for per lakh

consumption.

It is calculated monthly based on the previousmonth.

Exceptions are handled too.


9/22

MEAL

Supply Chain Management

Suppliers

Logistics

Storage Inventory Management


10/22

SUPPLYCHAINMANAGEMENTOFKFC

Step 1Raw material procured from various suppliers andstored at two warehouses; the normal storage andthe cold storage.

Step 2

All the product preparation is done at the branchexcept for the marination of chicken and sold tocustomers at the branch itself or delivered at thedesired locations.

Step 3Warehouses replenish each branch according totheir requirement (usually three times a week) usingcompanys own vehicles and drivers upon therequest of the branch manager.


11/22

SUPPLIERS

Highly perishable items(Daily Supply)

Chicken

Buns

Sauces

Spices and Herbs

Pepsi (Every alternate day)

Fries

Paper Packaging


12/22


13/22


14/22

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


15/22

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


16/22

INVENTORYMANAGEMENT

Farm to Fork

Receiving

Storing

Preparation

Serving


17/22


18/22

DESSERT

Quality Control

Key Success Factors

Maintenance


19/22

QUALITY CONTROL

Surprise visits to branches

Planned visits to branches

Rigorous raw materialsinspection

Customer feedback


20/22

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


21/22

MAINTENANCE

Own Maintenance Committee

30 + 15 days Employee Training Program

Quality Control Check


22/22

scm of kfc

Documents