Supply Chain Management KFC

Logistics and Supply Chain Management
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Table of Contents
Introduction......................................................................................................................................3
Task 1:.............................................................................................................................................4
Logistics and supply chain management at KFC.........................................................................4
Logistics and supply chain problem at KFC................................................................................4
Logistics management and variables...........................................................................................5
The importance of logistics variable in managing supply chain problem...................................5
Logistics variable to improve customer satisfaction....................................................................6
Task 2:.............................................................................................................................................7
E-commerce and E-business........................................................................................................7
E-commerce at KFC.....................................................................................................................8
Innovation in e-business and e-commerce at KFC......................................................................8
Self-support model...................................................................................................................8
Outsourcing model...................................................................................................................9
Supporting technique................................................................................................................9
Task 3.............................................................................................................................................10
Best practices.............................................................................................................................10
Reliability at KFC......................................................................................................................10
Three best practices that helps KFC to improve reliability.......................................................10
How these best practices can help to improve reliability at KFC..............................................11
Transportation........................................................................................................................11
Warehousing...........................................................................................................................11
Inventory management...........................................................................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
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Introduction
The restaurant giant, KFC has recently undergone a bitter experience from their customers
due to running out of its chicken. This incident has brought complain against the overall
logistics and supply chain management of KFC. These observations highlight the key
importance of the study, as it strives to critically apprise and analyze the logistics and supply
chain management framework of KFC. The current study will be classified into three task.
The task one will analyze the logistics and supply chain management at KFC, logistics and
supply chain problem at KFC, logistics variables and the importance of logistics variables in
managing supply chain problem at KFC. Further, it will evaluate how these logistics
variables improve customer’s satisfaction. The Task two will describe the e-commerce and e-
business, E-commerce at KFC, and e-commerce innovation at KFC and how these innovation
help KFC avoid delays in future. Finally, the study will shed light on assessing best practices,
reliability at KFC. Based on the assessment, it will suggest three best practices that can help
KFC to improve reliability. How these best practices can help KFC to improve reliability will
be justified here.
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Task 1
Logistics and supply chain management at KFC
The chain of fast food restaurant, KFC (Kentucky Fried Chicken) was founded in Kentucky,
United States in 1997 and serves chicken pieces, wings, salads, wraps, sandwiches, grilled
and roasted chicken products, side dishes, and desserts (KFC, 2018).
The logistics supply chain management of KFC shown by the following diagram. KFC
collects its raw materials both from self-owned firm and market. For example, it collects
chicken from self-owned poultry firms and market. Besides, the fast food chain restaurant
operates its transportation by hiring transport from external sources (KFC, 2018).
Figure 1 Supply chain framework at KFC (Source: KFC, 2018)
Logistics and supply chain problem at KFC
The chain of fast food restaurant, KCF faces several problem at its present logistics and
supply chain management at present and these are as follows.
Lack of skilled and trained human resources to coordinate and manage the logistics
supply chain.
Lack of data availability of logistics transporters, and providers.
Inadequate efforts of research and development to advance the supply chain system.
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