Logistics and Supply Chain Management in KFC

The provided document is an analysis of logistics and supply chain management within KFC. It highlights the significance of these practices in ensuring customer satisfaction, improving efficiency, and enhancing brand image. The discussion covers topics such as innovation in e-commerce, best practices, and reliability, providing insights into the key concepts and strategies for success in this context.

Logistics and Supply
Chain Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
TASK 2............................................................................................................................................3
TASK 3............................................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Supply chain management is a flow of goods and services that include the transformation
of raw material into finished goods to satisfy the need of customers (Bichou, 2015). Logistics
management is a part of supply chain management that plan and control, flow and storage of
goods. It is a technique of transportation of goods and services. This report is based on KFC,
which is a type of subsidiary industry founded in 1930. In this report, evaluation of logistic
variable in KFC is to avoid delay in future and achievement of customer satisfaction is discuss.
Apart from this, innovation in e-business and e-commerce is discuss. At last, importance of best
practices and reliability is discuss.
TASK1
1) Introduction of KFC
KFC is a fast food restaurant founded in 1930 by Harland Sanders. Its headquarter is in
U.S. Products and services offered by KFC are fried chicken, French fries, chicken sandwiches,
breakfast, deserts etc.
Logistics Management:- Logistics refers to the whole process of managing that how
resources are stored, acquired and transported to their final place. It involves to identifying
potential suppliers and distributors and deciding their accessibility and effectiveness.
Supply Chain Management:- It is an administration of flow of products and services. It
includes all processes that transformation of raw material into finished goods (Supply chain
management, 2018). Active supply side activities helps to increase customers value and gain
competitive advantage to KFC at marketplace.
Main raw material of KFC are mashed potato, chicken and seasoning which are
determined by the business agency of supplier. Ordinarily, bread, vegetable, beverage etc. are
supplied to KFC by the district level supplier (Cosimato and Troisi, 2015). After the global
assessment of supplier management system, providers are selected by alternatively. This
assessment system includes five areas such as financial, technical, quality, communication and
reliability.
Logistic management of KFC is reported to branch distribution as per demand order.
KFC use distribution resource planning (DRP) system in logistics management which includes
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input files like demand planning, inventory and output plans such as distribution plan,
procurement plan etc.
2) Logistics Management and Logistics Variables
Logistics Management- It is a part of supply chain management that consist of planning,
implementing and controlling the effectiveness and efficiency ot reverse flow and storage of
goods and services. It provide related information between point of beginning and consumption
to meet the needs of customers. Logistics management includes various elements which are as
under:-
 It choose appropriate seller who have ability to provide transportation facilities.
 It helps to selecting the most effective path for transportation.
 It has to discover the most efficient method of delivery.
 KFC using IT resources and software that can easily handle the related process.
Logistics Variables- It is concerned with acquiring goods and services where KFC is
needed when they have in demand. Without support of logistics support it is hard to execute any
production or marketing services (Govindan and et. al., 2014). It involves the consolidation of
information, inventory, warehousing, transportation, packaging and material handling. It is the
responsibility of logistics variable is to repositioning of raw material, work in progress and
finished goods in geographical area at lowest possible cost.
3) Importance of KFC's Logistics Variables
Logistics variable is important for KFC to avoiding delay in transportation in future.
These are as follows:-
Preventing loss- Logistics variable of KFC helps to prevent loss because it deals in
eatable goods which is a kind of perishable goods. If spoilable goods are not use in time then
they become waste and increase cost. So, company has to use this importance for avoiding delay
in future transportation. Firm has to make proper storage area for perishable goods by which
goods can be stored for long time and then it helps to prevent loss.
Cost reduction- It is one of the most effective factor of KFC is to earn maximum profit
by declining cost. In this, company company have to give order to supplier in bulk and proper
arrangement of warehouse. It helps in reducing cost and avoiding delay in transportation in
future.
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Clear communication- There should be proper communication between vendor and
supplier about transportation of goods and services. It helps in avoid delay transportation in
future (Heckmann, Comes and Nickel, 2015).
4) Importance of logistics variables in customer satisfaction
Customer satisfaction is very necessary in every organisation to earn maximum profit and
retain long run in future. A company can satisfy need of customers by measuring their
expectation and provide service as per their demand. Logistics variable is also play an important
role in customer satisfaction. When transportation facility is flexible then it is easy to meet
customers needs. Logistics variable includes all parties such as manufacturer, supplier, marketer,
retailer, transporters etc. which directly or indirectly satisfy customers needs. It improve the
overall performance of KFC by improving transportation facility. Logistics variable is a type of
transportation service which is more flexible and can be done at any time. Customers needs are
changes time to time. To satisfy the need of customers different types of raw material are needed.
So, it is very important to timely deliver of raw material or stock in order to meet customers
demand as soon as possible.
TASK 2
1) E-business and E-commerce
E-business:- E-business is a commercial transaction in which involves sharing data
across the internet. It was first introduced in 1996 by IBM in the market. Electronic business
define the use of the internet, extranets, web, intranets and other combination to running the
business. In this include the selling and buying of products and services and also providing the
customer and technical support via the internet (Mangan, Lalwani and Lalwani, 2016). The main
objective of this is improve the business services or processes quality and communication with
public, consumers, bank and suppliers.
E-commerce:- E-commerce is the activity of transmitting of data and funds and selling
and buying products and services over a network. These transaction happen either as consumer-
to-consumer, business to business, consumer-to-business and business-to consumer. It is allows
customers to electronically exchange services and goods with no obstacle of distance or time. E-
commerce is use for the sale of physical services and products online but it also define the any
type of commercial transaction which is facilitated via the internet.
2) E-business and E-commerce at KFC
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E-business at KFC:- E-business help to KFC in selling and buying products, servicing
consumers, managing production control, sharing information, services and supplies, processing
payments, cooperate with business partners, recruiting etc. KFC use e-business in wider range
business activities like consumers relationship management, electronic order activity and supply
chain management which is help to KFC to operate business more efficiently and effectively.
E-commerce at KFC:- The information which is provided by e-commerce can increase to
business to consumers sales in person at the restaurant (Peng, Peng and Chen, 2014). According
to e-commerce there are 3 forms, but according to business there are many terms to formulation
it. Business to customer can increase the online sales. Customers to customer sales can increase
to an in individual sale. In business to business, they sale their products to the other business then
they sale to the consumers. KFC have their own website to communicate with its customers. This
site provide information such as menu, promotions, news etc. This also provide online security,
accuracy and protection to the website along with the virus, advertisement and content security
from the outside intruders.
3) Innovation in E-business and E-commerce at KFC
E-commerce redesign is a demanding challenges in KFC. E-commerce is a important part
of KFC's income. They has approximately 65% mobile users so they need to focus on mobile
first approach. They need to preparing the designs and plan for the solution of technical and
processes drawbacks. For the innovation in e-commerce they decide to gathering quantity and
quality information, interviews with stakeholders, preparation of principles of project, expert
audit and for the existing version, they usage or conduct survey. From the above all process
KFC can easily conduct innovation in e-business and e-commerce and can deduct the issues,
drawbacks and delays in the future (Schönsleben, 2016).
After innovation further components take place and help the KFC to deduct issues such
as consumers can view all the products details by scrolling, client can compare related products,
KFC can do product up sell because they addition in the number of places, consumers can
quickly and easily navigate the website without knowing menu of KFC very well.
TASK 3
1) Best practices
Best practices is a set of program, ethics, guidelines and ideas that symbolise a most
efficient course of action. It is often a set of authority such as governing body, regulator and
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internal management. Best practices generally recommend the course of action which a situation
required. In context of KFC, best practice is a technique that has proven to desired result by
research and experience.
A best practice is a broad statement that standardised the most effective and efficient
manner to execute a desirable result. These are frequently used for benchmarking and
corresponding a result of contextual someone actions (Touboulic and Walker, 2015). It generally
consists of a technique, process and methods which implies that if KFC follows best practices
with a delivered outcome with minimum troubles or complications will be insure.
2) Reliability at KFC
Reliability refers to the ability of an equipment, system or machine that are consistently
perform their function on demand without failure. The chances of failure performance is very
less and consistency of test results are discovered through statistical methods.
In context of KFC, reliability means providing service as per promise given customers
and handling problems in customer service. KFC does not able to perform their service at right
time and also not provide services in promising time. Reliability means maintaining error free
records. Company has to improve all these things which create reliability in the eyes of
customers and improve brand image of an organisation.
3) Best practices to improve reliability
There are different best practices which helps to improve reliability at KFC. These are as
follows:-
Training and development- Training refers to addition in knowledge and skills. It is all
about where a person stand in today and after some time where they want to reach their ability.
Development refers to overall improvement of an organisation.
Use high quality material- Company have to use high quality of material and equipments
in their organisation for production of goods and services. High quality goods attract consumers
which ultimately helps in increasing profit.
Cleaning and maintenance- It is one of the best practice for KFC to improve reliability
in their services in front of consumers (Wang and Cullinane, 2015). Cleaning and maintaining
the eating place is very essential to enhance their image and brand value.
4) Analysis the best practices that help KFC to improve reliability
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There are some best practices discussed above are helps in improving the reliability of
KFC. Analysis of these practices are as follows:-
 When training is given to employees then they helps in improving performance. Now a
days, technologies are upgrading very fast and customers demand is also changing. To
determine this, employees of KFC need proper training to meet out customers needs.
 If company use high quality of lubricants, plants, machinery and material then it reduce
cost of production and improve efficiency (Yu and et. al., 2016). It helps to improve
reliability of KFC.
 When KFC is properly maintain there restaurant and eatable area then it helps to a firm to
increase their brand image and attract more customers because now a days people are
more hygienic and they want proper cleanliness and maintenance at work place or eatable
place.
CONCLUSION
From the above discussion, it has been conclude that logistics and supply chain
management are important part of an organisation. Logistics variable is essential for customer
satisfaction and avoiding future delay. Innovation in e-commerce and e-business is very useful
for an organisation to increasing sales and eliminating other barriers which helps to attract more
customers. Best practices and reliability also play an important role for the success of KFC. So,
company have to analyse their best practices and improve reliability to better growth and
success.
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REFERENCES
Books and Journals
Bichou, K., 2015. The ISPS code and the cost of port compliance: an initial logistics and supply
chain framework for port security assessment and management. In Port Management
(pp. 109-137). Palgrave Macmillan, London.
Cosimato, S. and Troisi, O., 2015. Green supply chain management: Practices and tools for
logistics competitiveness and sustainability. The DHL case study. The TQM Journal.
27(2). pp.256-276.
Govindan, K. and et. al., 2014. Impact of supply chain management practices on sustainability.
Journal of Cleaner Production. 85. pp.212-225.
Heckmann, I., Comes, T. and Nickel, S., 2015. A critical review on supply chain risk–Definition,
measure and modeling. Omega. 52. pp.119-132.
Mangan, J., Lalwani, C. and Lalwani, C. L., 2016. Global logistics and supply chain
management. John Wiley & Sons.
Peng, M., Peng, Y. and Chen, H., 2014. Post-seismic supply chain risk management: A system
dynamics disruption analysis approach for inventory and logistics planning. Computers
& Operations Research. 42. pp.14-24.
Schönsleben, P., 2016. Integral logistics management: operations and supply chain management
within and across companies. CRC Press.
Touboulic, A. and Walker, H., 2015. Theories in sustainable supply chain management: a
structured literature review. International Journal of Physical Distribution & Logistics
Management. 45(1/2). pp.16-42.
Wang, T. and Cullinane, K., 2015. The efficiency of European container terminals and
implications for supply chain management. In Port management (pp. 253-272).
Palgrave Macmillan, London.
Yu, Y. and et. al., 2016. E-commerce logistics in supply chain management: Practice
perspective. Procedia Cirp. 52. pp.179-185.
Online
Supply chain management. 2018. [Online]. Available
through:<https://searcherp.techtarget.com/definition/supply-chain-management-SCM>.
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