SUPPLY CHAIN MANAGEMENT OF

KFC

Kentucky Fried Chicken is a fast food restaurant chain headquartered Kentucky, United States, which specializes in fried chicken.

was founded by Harland Sanders.with the first franchise opening in Utah in 1952.

KFC operates more than 15,000 restaurants around the world today.

KFC’S HISTORY

KFC Pakistan started in 1997 with its first branch in Gulshan e Iqbal.

KFC won the title of market leader at that time.

It has 64 outlets located nation wide.

KFC IN PAKISTAN

Supply chain management is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage.

WHAT IS SCM?

KFC’s supply chain can be summed up in 3 process:

First, raw material is procured.All product preparation at the branch.

Warehouses replenish each branch according to requirement.

SUPPLY CHAIN OF KFC

SCM

KFC has its warehouses in both North and South regions of the country.

Northern central warehouse is in Lahore.

Southern central warehouse is in Karachi.

WAREHOUSING

WAREHOUSES

Planning of monthly budgets.Supply of chicken by K & N’s.(……Unilever provides sauces.Spices and herbs are imported from Dubai and Singapore.

Packing materialBread and buns.Potatoes for French fries.Other items

PROCUREMENT

PROCUREMENT

Storage of chicken, spices and herbs, bread and buns.

STORAGE AND INVENTORY

INVENTORY

ZONAL DISTRIBUTION

Distributions on need basis.(JIT)Karachi is divided into 3 zones.Daily vehicles are dispatched from the Southern Warehouse to these Zonal areas.

ZONAL DISTRIBUTIONS

Surprise visits to branches

Planned visits to branches

Rigorous raw material inspection

Customer feedback.

QUALITY ASSURANCE

Kfc uses the Supply Chain Management Software to manage its inventory.

This was developed by Siddhat Haider.

Physically the inventory is counted to tally with the figures in software.

SOFTWARE

KFC is well known for the ingredients it uses. KFC has kept emphasizing that its chicken is different (when compared to competition).

Colonel Sander said their chicken is “entirely different but still tender and tasty”.

COMPETITIVE ADVANTAGE