Kellogg S Case Report

Kellogg’s, as a large-scale food manufacturer, has storing and transporting stock processes, which link three main parts of the supply chain, including primary sector, secondary sector and tertiary sector. In its analysis of the supply chain case, Kellogg’s collaborates with specialized companies, such as TDG and Kimberley Clark, which are responsible for warehousing and distributing Kellogg’s finished foods to customers. As a result of Kellogg’s outsourcing business, it allows Kellogg’s to concentrate on its specialized manufacturing and efficiently control the level of inventory based on customers’ needs, which improves its product’s competitiveness and achieves more market share. Besides, Kellogg’s builds good relationships with retailers, such as Tesco and ASDA, which directly connect with customers. Retailers can help Kellogg’s to effectively promote its products for customers. In turn, retailers can gain extra value and increase their turnover through the collaboration with Kellogg’s. Building a good relationship with the tertiary sector is a win-win strategy to achieve growth, especially cooperating with TDG. Outsourcing the logistic aspect of its businesses, Kellogg’s can entirely minimizes wastage and achieves cost reduction by effectively using lean production and inventory control strategies based on the collaboration with TDG, which provides efficient distribution system. This system reduces transport costs and allows Kellogg’s to improve the environmental performance for FDF’s requirements to create its competitive advantage. Given that all retailers and manufacturers intend to hold limited stocks of product to reduce warehousing cost, TDG’s distribution system allows Kellogg’s to use the just-in-time method to ensure low inventory by specialized transportation skills to deliver orders on time. From this perspective, Kellogg’s lowers inventory costs and increases profit. Therefore, focusing on the effectiveness of the SCM, TDG considerably