Supply Chaiin Management Practices at Kfc Pakistan

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TABLE OF CONTENTS

EXECUTIVE SUMMARY3

Introduction:4

Plan5
Source5
Make6
Deliver6
Return6
Just-in-time (JIT):7
Stocks:7
Safety Stock:8
Stock Taking:8
Lead time:8
Inventory control:9
Transaction cost approach:9
Environmental concerns:9
Sourcing to Delivery:10

Inventory Management10

Enterprise Resource Planning System11

Material Requirement Planning System11

Demand Forecasting and Order Management System11

KFC an Overview12

Cupola Group13
Vision13
Mission13
Facts14

Supply Chain Management at KFC15

Planning15
Planning Department15
Functions15
Planning Inputs16
Initial Steps16
Sourcing17
Outsourcing18
Why KFC Go For Outsourcing18
Suppliers ………………………………………………………………………………....18 Mobile Vans20
Warehousing20
Making20
Processing21
Packing21
Quality assurance Dept21
KFC process Flow chart for a Zinger burger ......................................................................................21 Deliver23
KFC Delivery Service23
KFC Launched Its First Mobile Unit Service24
Return24

CHAMPS24

KFC & PEPSICO Int. Agreement25

Conclusion26

INDEX27

References28

Special Thanks to28

EXECUTIVE SUMMARY

The Services sector is one of the fastest growing industries in Pakistan and we had the opportunity to study the supply chain management practiced at KFC, which was previously named as Kentucky Fried Chicken.

The project reveals KFC’s background, their vision, mission, and their coverage area. This project also focuses on company’s business overview, the affinity partners and their business centres. The main focus of the project is to demonstrate how KFC plans for future production, use of source, makes its product, and delivers it to the customer and the criteria to return the delivered products.

Finally, this project is all about our understanding of day to day operations conducted at KFC’s outlets, how they plan their tasks, who are their main suppliers, what sort of standards do they maintain while performing these tasks, how they value their customer, what sort of logistic channels do they use, what sort of standard operating procedures do they follow. All in the entire project is a comprehensive description of how the supply chain management is practiced at KFC.

Introduction:

Supply chain management (SCM) is the combination of art and science that goes into improving the way a company finds the raw components it needs to make a product or service and deliver it to customers. Supply chain management is important in business. The term SCM comes from a picture of how the organizations are linked together as viewed from a particular company. Many companies have enjoyed significant success due to unique ways in which they have organized their supply chains. The measures of supply chain efficiency are inventory turnover and weeks of supply. Efficient processes should be used for functional products and responsive processes for innovative products. This alignment of supply chain strategy and product characteristics is extremely important to the operational success of a company. Companies that face diverse sourcing, production, and distribution decisions need to weigh the costs associated with materials, transportation, production, warehousing and distribution to develop a comprehensive network designed to minimize the costs. Following are the five basic components of SCM.

• Plan
• Source
• Make
• Deliver
• Return

Plan:
This is the strategic portion of supply chain management. One needs a strategy for managing all the resources that go toward meeting customer demand for a product or service. A big piece of planning is developing a set of metrics to monitor the supply chain so that it is efficient, costs less and delivers high quality and value to customers....
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