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
• Standardized
• U-Shaped
Design
• Saves Time
• Good Ambience
• Reduced Motion
• Variety in Seating
Waste
Arrangement
• Reduced Accident
• Effective use of
Risk
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 company’s 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