Importance of Supply Chain Management for KFC

This document explains the importance of supply chain management for KFC, focusing on customer service and cost reduction. It includes definitions of logistics management and supply chain management, as well as diagrams and explanations of the supply chain structure for KFC. The document also discusses the significance of supply chain management in improving customer service and reducing operational costs.

Notes on Project.
1. Please complete all the questions
2. Diagrams are samples. Please draw again using word document features for the
companies mentioned for each question.
3. Please do not copy paste diagrams from the website. It needs to be drawn using word
features.
4. Please explain and use Harvard referencing. In text referencing as well.
5. This project is based n supply chain and logistics

1. DEFINITION OF LOGISTICS AND SUPPLY CHAIN
MANAGEMENT
10 MARKS (I)
1. Define Logistics Management
1.1.1 Simple Definition
Logistic is the movement of goods, services and information (resources) from the point of Origin
to the point of consumption to meet the Customers’ Requirements.
Logistics Management
Movement of
goods, information
and services
Point
of
Origin
Point of
consumption

1.1.2 Detail Definition
Logistic is defined as movement of goods and services of company at one place to another.
Logistic is among the key functional activities organizations especially the multinational
organizations are engaged with. In case of multinational companies’ operations are established at
across the globe. Organization needs to transfer its products at one location of business to
another (Christopher, 2016). Logistic management is all about managing such products of
company that are transferring to one location from another business location.
2. Define Supply Chain Management
Raw
material
supply
Manufactu
rer Distributor Wholesales Retailers End users
Logistics Supply Chain

1.1.1 Simple Definition
Supply chain management is defined as managing the supplies of company’s products and
services at all locations of business.
Integration of business processes such as procurement, manufacturing, distribution and customer
services
1.1.2 Detail Definition
Supply chain management is all about managing the suppliers involve in the business operations
of company. Supply chain management of company comprises with global level of suppliers of
the products offer by company. Supply chain management play a crucial role for the company in
channelizing the operations of company smoothly (Govindan and et.al., 2018).
Supplier Company Customer
Supply Chain Management

1.1.3 My Definition
Supply chain management system involves procurement of the basic raw material needed to
produce the final products of company. The raw material involves all basic ingredients that is
required to produce the different products offer by Company. Proper availability of all the raw
material company use to produce its products. Along with the basic raw material needed to
Procurement Manufacturing Distribution Customer
services
Business processes

produce the company’s products this also involve ensuring manufacturing process achieve the
maximum level of production efficiencies. Supply chain immensely signify that the organization
achieve the best level of production efficiencies. Distribution is also a key part of supply chain
management system entertain by organization (Hsu, Tan and Zailani, 2016). Supply chain
management properly ensure that organization maintain the proper distribution chain. This
involves ensuring the proper safety when the company sent its material and products at other
locations. In case of supply chain management customer services also involve in action.
Customer service involves ensuring the proper response to all the issues raised by customers of
Company. Achieving high level of customer service is a part of supply chain management of the
company.
Raw
Material Production Customer
Supply Chain Management

2. YOU HAVE BEEN APPOINTED AS A LOGISTICS
CONSULTANT BY XXXX. YOU ARE REQUIRED TO DEVELOP
THE LOGISTICS CHAIN FOR THE COMPANY. YOU ARE
REQUIRED TO PREPARE THE REPORT BASE ON THE
FOLLOWING FORMAT:
2.1: Company Background (1-2 Pages)
KFC Company is US based restaurant chain. Company is involved in different non veg food
items. Harland Sanders is the founder of the KFC. Company is currently operating its business at
more than 22000 locations all across the globe. Headquarter of the company is located in US.
Company initiated its business operations in the year 1930 (Yazdani and et.al., 2017). The
organization is currently one of the leading brands in the restaurant chain. Company ensure
proper quality in all its products to achieve the best level of customer service experience.
Different chicken products are the main products company engaged in serving. The brand is
ensuring proper level of quality in all its products.
2.2: Propose Logistics Chain Diagram
Please draw the diagram using word. Please elaborate each diagram.

Logistic chain is quite different from supply chain because it focuses on
transportation of goods while supply chain focuses on final goods or customers. From
above mentioned flow chart can be understood that suppliers initially transport raw
material to manufacturer then input transform into output. Supplier takes output to
wholesaler. Then wholesaler transports final goods to the retailers and in last final
customers.
2.3: Explain the Propose Logistics Chain Diagram focusing on Logistics Components
with justification
Draw diagram – select where necessary for the log chain. Elaborate in detail.
Services Manufacturer Warehouses End users
Warehouse KFC’s manufacturer
produces food
products then
transport it into
Warehouse
management of
KFC is responsible
for handling raw
Final products
directly supplies
from warehouse to
end users.
Supplier Manufacturer Wholesaler
Buyer Retailer

warehouse as
storage house.
material into
warehouses.
Transportation Supplier is
responsible for the
supplying raw
material to the
manufacturer then
regain suppliers
transport final
product to
warehouses.
Suppliers transports
final products to the
warehouses.
Suppliers transport
KFC’s products to
the need’s users
accordingly their
orders.
Material handling Vendors are
responsible for the
material handling.
They transport raw
material to
production houses.
Packing &
unpacking
Warehouse
management plays
role of packing final
products. Workers
of warehouse packs
all final products as
per the
organization’s
demand
Salvage and scrape KFC sends it’s final
products for the
testing before
distributing final
consumers to check

that it is safe or not.
40 MARKS (G)
1. BASE ON YOUR REPORT YOU ARE REQUIRED TO
DEVELOP THE SUPPLY CHAIN STRUCTURE FOR YOUR
CLIENT. YOU MUST DRAW AND EXPLAIN THE SUPPLY
CHAIN DIAGRAM
3.1: SIMPLE SUPPLY CHAIN DIAGRAM
Manufacturer Warehouses End users
Warehouse
Transportation
Material
handling
Warehouse
Transportation
Packing &
unpacking
Salvage and
scrape
Transportation

Need to draw the diagram below based on KFC restaurant and explain.
KFC’s Supply Chain Management
Supplier Company Customer

KFC’s restaurant supply chain: Initially suppliers provides raw materials to the worker of KFC
then supplies to equipment holders who chop raw material into small pieces then transfer to
manufacturer then final product or good supplies to consumer (Sathish and Jayaprakash, 2017).
3.2: TYPICAL SUPPLY CHAIN DIAGRAM— draw and explain based on KFC franchise
Do for KFC .
KFC’s Restaurant Supply Chain
Raw Material
and parts of
suppliers
Equipment
Suppliers
Consumers
Consumer Goods
Production

From the above-mentioned diagram can be understood that that KFC’s has number of franchises
which are spread all over the world. Initially suppliers hand over raw material from the point of
origin (Farm) and transfer to the warehouse means storage management company. Then
suppliers transport raw material to KFC’s manufacturing franchises. Production company is
responsible transfer raw material into final products, suppliers supplies this final product into
storage company then it distributes to the retailer accordingly their demands with support of
suppliers. In last retailers such as restaurant supplies goods to the buyer as per their needs.
Supplier
Customer
s Distributor
Storage Manufacture
StorageRetailer
Typical Supply Chain of KFC Franchises
Farms

3.3 EXTENDED SUPPLY CHAIN DIAGRAM draw and explain based on KFC franchise
The initial suppliers primarly supplies input to the supliers then they transport to the company.
Organization directily inetrlinked with service provides wherein includes logistic department,
product design, finance, market research and information technology which supports to design
such products that fulfil needs of individuals and prices all fix by finance department. Cmpany
supplies final products to the customers then transports to the end users.

Ultimate
Supplier
Service Providers
Supplier Company Customer Ultimate
Customer
Logistic Finance Market
Research
Information
Technology
Product
Design
Complex Supply Chain of KFC Franchises

3.4: UPSTREAM SUPPLY CHAIN draw and explain based on KFC franchise
To get raw material contacts by KFC to suppliers who provides chicken from the poultry firm
then transport it for further process. To manufacture raw material into food requires groceries
then KFC regain communicate with suppliers. Then suppliers provide groceries as per it’s
demand. Whenever KFC needs soft drinks then communicate with soft drink suppliers. Thus,
KFC keeps three type suppliers for different demands. This chain is known as upstream because
it starts from origin of food.
UPSTREAM SUPPLY CHAIN OF
KFC FRANCHISE
Contact
Suppliers Contact
Supplier
s
Groceries
KFC
Chicken
Firm Soft
Drinks
KFC communicate
with suppliers for the
raw material
KFC
communicate with
supplier for the
soft drinks

3.5: DOWNSTREAM SUPPLY CHAIN draw and explain based on KFC franchise
Suppliers provides final food to KFC then it contacts to distributors who distributed foods to the
retailers. While retailers sell KFC’s products to the consumers. This process is known as
downstream process.
3.6: TOTAL SUPPLY CHAIN (Upstream and Downstream) Draw a diagram based on
KFC franchise and explain
(sample diagrams below, please draw the diagram based on KFC accordingly)
DOWNSTREAM SUPPLY CHAIN FOR KFC
FRANCHISE
Contact
Suppliers KFC Distribut
or Retailer Customer

TOTAL SUPPLY CHAIN OF KFC
FRANCHISE
Suppliers
Suppliers
Chicken
Firm
Soft
drinks
Groceries Custo
mer
Distri
bution
Retail
er
KFC
Upstream
Downstream

30 MARKS (I)

4.0: YOU ARE REQUIRED TO EXPLAIN THE IMPORTANCE OF
THE SUPPLY CHAIN TO YOUR CLIENT.
20 MARKS (I)
Significance of supply chain
Supply chain management is the effective user service tool that plays essential role in
leading customer satisfaction in term of price and delivery. With the supply chain organization
can gain highly competitive advantage on it’s products and generate high profit margin on retail
price. Benefits are described as follows:
Customer service: Strong supply chain delivers products quickly or on time as much as possible
(Kainand Verma, 2018). Thus, client enables to improve level of satisfaction in consumers for
the product and services. Supply chain is too broad so it become easy to provide product
availability across the world. Large number of suppliers within supply chain supports customers
to give efficient services of fast food to their consumers on time. Thus, supply chain
management supports company to improve customer services effectively.

Reduces operation cost: An effective supply chain management helps organization to decline
cost of purchasing and production effectively. For example, most of the companies uses this
approach to bring high productivity of products at lower costs that automatically decreses
operational cost. Thus, company get chance to generate high profit margin on it’s products.
Apart from this, low operational cost decreases price of products (Ha, Tian and Tong, 2017).
Thus, company get chance to improve buying behavior of customer for the product and services.

REFRENCES
Books and Journals
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Govindan, K and et.al., 2018. Big data analytics and application for logistics and supply chain
management.
Hsu, C.C., Tan, K.C. and Zailani, S.H.M., 2016. Strategic orientations, sustainable supply chain
initiatives, and reverse logistics. International journal of operations & production
management.
Yazdani, M and et.al., 2017. A group decision making support system in logistics and supply
chain management. Expert systems with Applications, 88, pp.376-392.
Sathish, T. and Jayaprakash, J., 2017. Optimizing supply chain in reverse logistics. International
Journal of Mechanical and Production Engineering Research and Development, 7(6),
pp.551-560.
Kain, R. and Verma, A., 2018. Logistics management in supply chain–an overview. Materials
today: proceedings, 5(2), pp.3811-3816.
Ha, A.Y., Tian, Q. and Tong, S., 2017. Information sharing in competing supply chains with
production cost reduction. Manufacturing & Service Operations Management, 19(2),
pp.246-262.