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Managing Supply Chain Disruptions: A Case Study on KFC in Pakistan
Added on -2019-09-23
This case study discusses the impact of Middle East uprisings on KFC's supply chain in Pakistan and the need for contingency planning and collaboration in supply chain management. The supply chain manager had to reroute a shipment of food products to different stores in nearby countries due to store closures in Pakistan. The study highlights the importance of collaborative transportation management (CTM) in mitigating the impact of economic crises and improving the performance of the overall transport planning and execution process.
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1.Any disruption in the supply chain can render negative impact on a business in a thorough manner. In the concerned case it has been observed that there are certain uncertainties that have been affecting KFC’s business in Pakistan owing to Middle East uprisings. In the given scenario it has been observed that being a supply chain manager for KFC I had a shipment of food products ready to deliver in Pakistan but I have been notified that the stores have been shut down and the inventory needs to be rerouted to different stores in nearby countries. In this case I will have to reroute the shipment on contingency basis. In respect of such problem it must be said that the supply chin of the franchise would be affected by the concerned events. Being the supply chain manager I would have to determine the contingent rerouting strategy for enhancing supply chain resilience while taking a supplier’s point of view (Wang, Herty & Zhao, 2015). Being the manager I would seek for tools for assistance in this regard and I will have to consider a supply chain with multiple suppliers at each stage and then has to establish a mathematic model for product allocation behaviour among different suppliers. 2.Collaboration plays a significant role in any business affair. In the context of managing supply chain the issue of collaboration should be highlighted being an important aspect of the entire business process. It must be noted that supply chain collaboration, with focus on transportation, should be presented as a way of mitigatingthe impact of different economic crises. It should be noted that while there are concerns related to the issue of control, trust, and despite the fact that there are potential risks of entering into collaborative relationships; the potential benefits of such collaboration cannot be undermined. In this respect it must be stated that collaborative transportation management (CTM) is the need of the hour. In the context of modern economy and supply chain functions the importance of CTM cannot be overlooked. But before coming to the point one must know what CTM exactly is. CTM is “a holistic process that brings together supply chain partners and service providers to drive inefficiencies out of the transport planning and execution process. The objective of CTM is to improve the operating performance of all parties involved in the relationship by eliminating inefficiencies in the transportation component of the supply chain through collaboration” (Sutherland, 2009). Hence, it can be seen that CTM is the need of the hour in terms of successfully supporting the supply chain in the context of modern anomalies. It should also be taken into account that to enhance the interaction between three principle parties (to a supply chain) viz. shipper, carrier, and receiver – CTM must play a crucial role. In such a system the participants would be allowed to collaborate by sharing information about demand and supply, ideas and capabilities that are needed to improve the performance of the overall transport planning and execution process (Sutherland, 2009). It should also be taken into account that “The process begins with an order/shipment forecast, and includes capacity planning and scheduling, order generation, load tender, delivery execution, and carrier payment” (Sutherland, 2009).
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