Supply Chain Management of KFC: An Analysis

This presentation analyzes the supply chain management of KFC, one of the most well-known fast food chains in the world. It discusses the strengths, weaknesses, opportunities, and threats of KFC's supply chain management, as well as key issues and recommendations for improvement. The presentation suggests that KFC needs to improve collaboration and coordination between stakeholders, enhance information technology, implement efficient training programs, and improve the hiring and recruitment process.

SUPPLY CHAIN MANAGEMENT
An analysis of the Supply Chain Management of KFC

INTRODUCTION
• KFC is one of the most well known
fast food chains in the world.
• Established in the year 1955 in
Kentucky, KFC has now emerged as
one of the most beloved chains of
restaurants with branches spread
out across in 120 countries.
• The company has annual revenue
of more than ten billion dollars

EXISTING SUPPLY
CHAIN MANAGEMENT
OF KFC

EVALUATION
OF SUPPLY
CHAIN
MANAGEMEN
T OF KFC
Strengths:
• KFC has a clear
understanding of the flow
of product from the
supplier to the consumer.
That makes it easier to
facilitate the flow of
product from one level to
another in the supply
chain.
Strengths:
• Top quality products
used.
• Raw materials mostly
obtained from self
owned stores or poultry
farms, thus
guaranteeing top quality
resources.
• Distribution chain well
defined.

EVALUATION
OF SUPPLY
CHAIN
MANAGEMENT
OF KFC
Weakness:
• Lack of coordination
between supply chain levels
• Human resources are not
skilled or trained
• Flawed information
technology systems

EVALUATION
OF SUPPLY
CHAIN
MANAGEME
NT OF KFC
Opportunities:
• The fast food industry
around the world is
growing at a rapid rate,
despite the various
concerns regarding the
harmful impacts on
health and the growing
economic crises.
Opportunities:
• KFC, which has already
established itself as a name
to be reckoned with in the
fast food industry, has
immense opportunity to
make a favorable
international presence.

EVALUATION
OF SUPPLY
CHAIN
MANAGEMEN
T OF KFC
Threats:
• Sudden changes in
the market
• Changing consumer
demands
• Intense competition
with rivals

KEY
ISSUES
• There is a lack of collaboration between
the various levels of the supply chain.
Inefficiency as far as communication and
coordination is concerned has often
resulted in delays within the supply
chain (Li et al., 2014).
• Technological factors are instrumental in
shaping the supply chain (Smith & Rupp,
2015). Information Technology
regulating the flow of product within the
supply chain is underdeveloped. As a
result, the supply chain has slowed
down.
• The availability of data needed for
logistics is not efficient.

KEY
ISSUES• A supply chain like that of KFC would
require a highly skilled workforce for
seamless coordination (Chen et al.,
2012). However recently, the quality of
manpower employed at KFC has fallen,
thus adversely affecting the supply
chain. Moreover, there is a lack of
transparency within the supply chain
(Marshall et al., 2016).
• At present, there are several new trends
that have emerged which seek to
improve the supply chain (Seuring,
2013). However, the supply chain
management process at KFC is outdated
and lacks development and research.
• Recently, a number of changes have
been implemented in company
regulations which have hindered the
smooth flow of the supply chain.

RECOMMENDATIO
NS
• The supply chain of a fast food company like KFC should be free of hassles. This is all the more
poignant given the fact the transported raw materials are perishable in nature. Thus, there needs
to be more collaboration and coordination between the stakeholders involved in the supply chain
process. Facilitating open lines of communication and more collaboration between the parties
involved would ensure a seamless and smooth flow of product to the customers.
• Information technology at KFC would have to be enhanced. In an age of technological
advancement, KFC should make use of available technological resources to avoid the loopholes in
the supply chain.
• Efficient training programs should be implemented where every member of the supply chain
beginning from the suppliers to the logistic providers would be provided specialized training on
how to reduce time consumed in transportation and procurement of raw materials. This would
reduce the glitches within the supply chain.
• The hiring and recruitment process within the supply chain must be improved. Since the supply
chain of KFC is entirely dependent on its manpower, the quality of the workforce would have to be
improved. A team of competent and efficient individuals must be hired by the company to
coordinate and manage the supply chain.

CONCLUSION
• To conclude, it can be said that the supply
chain process at KFC plays a crucial role in
determining the quality of the end
products delivered to the customer.
• At KFC, a specific distribution requirement
planning method is used in the supply
chain where the distributor is responsible
for coordinating the flow of product.
• Lack of coordination and team work within
the supply chain has led to a number of
delays and glitches.
• Thus, it is the responsibility of the
company to ensure tactful supply chain
management which would take into
consideration all the concerned parties,
their interests and provide for
collaboration between the same.

REFERENCE:
Chen, X., Hao, G., Li, X., & Yiu, K. F. C. (2012). The impact of demand variability and transshipment on vendor's
distribution policies under vendor managed inventory strategy. International Journal of Production
Economics, 139(1), 42-48.
Giri, B. C., Chakraborty, A., & Maiti, T. (2015). Quality and pricing decisions in a two-echelon supply chain under
multi-manufacturer competition. The International Journal of Advanced Manufacturing Technology, 78(9-12),
1927-1941.
Herzi, A. (2013). KENTUCKY FRIED CHICKEN (KFC) SUPPLY CHAIN MANAGEMENT. Al-Madinah Managment and
Finance Science, 1(4).
KFC. (2018). Retrieved from https://www.kfc.com/menu/chicken
Li, D., Wang, X., Chan, H.K. & Manzini, R.. (2014). Sustainable food supply chain management. International
Journal of Production Economics, 152(0), pp.1-8.
Marshall, D., McCarthy, L., McGrath, P., & Harrigan, F. (2016). What's your strategy for supply chain
disclosure?. MIT Sloan Management Review, 57(2), 37-45.
Seuring, S. (2013). A review of modeling approaches for sustainable supply chain management. Decision
support systems, 54(4), pp.1513-1520.
Smith, A.D. & Rupp, W.T. (2015). Supply chain integration and innovation in a global environment: case studies
of best business practices. International Journal of Logistics Systems and Management, 22(3), pp.313-330.

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