Supply Chain Management in Kelloggs

This document discusses the supply chain management practices and operations in Kelloggs, a multinational organization in the cereal manufacturing industry. It covers key concepts, principles, and processes of supply chain management, as well as the importance of effective SCM from various perspectives. The document also explores the cross-functional and integrated approach of SCM with other areas of the organization. Finally, it evaluates the supply chain strategy in Kelloggs and presents proposals for improvement.

Supply Chain
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Demonstrate how key supply chain concepts, principles and processes are applied throughout
the stages of resourcing, product design and development, logistics and distribution. .............3
Evaluate the importance of effective SCM from the perspective of customers, suppliers,
distributors and retailers..............................................................................................................5
Evaluate the cross functional and integrated approach of SCM with other areas of an
organisation.................................................................................................................................7
Evaluate a supply chain strategy within an organisation and present proposals for
improvement...............................................................................................................................9
CONCLUSION .............................................................................................................................12
REFERENCES .............................................................................................................................13
Books and Journal ....................................................................................................................13

INTRODUCTION
Supply chain management can be characterised as the movement and flow of goods and
services through various stages so as to fulfil the demands and requirements of customers and
provide them with maximum satisfaction. It involves a network of individuals that are
responsible for supplying the raw material to the business organisation as well as providing the
end products to the customers. Kelloggs is a multinational organisation involved in the
manufacturing of cereals having operational branches in multiple countries. The former
organisation caters a wide range of cereal products to the consumers in order to satisfy their
breakfast cravings (Arunachalam Kumar and Kawalek, 2018). The report highlights upon the
supply chain practices and operations of Kelloggs organisation. It provides a detailed analysis
about the key process and principles of supply chain management. It also encompasses the
benefits pertaining to the effective supply chain management in the respective organisation. The
cross functional as well as the integrated approach of supply chain management in Kelloggs is
also discussed under the projected report. The report also incorporates the formation of supply
chain strategies as well as includes the recommendations that can help the company to enhance
their current line of operations.
TASK
Demonstrate how key supply chain concepts, principles and processes are applied throughout the
stages of resourcing, product design and development, logistics and distribution.
Supply Chain Management Concept
Supply chain management is a group oriented management function wherein the
individuals and workers involved in the regulation of the supply chain needs to work together in
a systematic mechanism in order to effectively carry out the supply chain management of the
business enterprise. It is a multinational organisation operating at a global level. In order to cater
goods and services to the customers, it is extremely important for the business organisation to
focus on and concentrate on the smooth and efficient operations of the supply chain.
The workers providing their services in the supply chain management needs to be aware of their
respective roles and duties in the supply chain process so as to eliminate the chances of
overlapping the functions and to execute the supply chain management process appropriately.

The supply chain management process of the Kellogg is mentioned below :-
Planning
The first and the most essential part in the supply chain management process is to plan
out short terms as well as long term innovating strategies. Kellogg designs and develops its
supply chain network system in this particular stage (Barata, Da Cunha and Stal, 2018).
Customer demand and requirements are predicted in this stage so as to facilitate the operations in
accordance with the same. Kellogg's supply chain managers and leaders formulated various
action plans and strategies that can help the company to accomplish the process accurately.
Procurement
The respective process concentrates on the acquisition of the essential raw materials and
elements required for the regulation of the operations pertaining to supply chain management.
Kellogg also focuses on purchasing and procuring the best quality raw mater8ials and
components so as to utilise the same in the production process of the business organisation.
Production
It is process which facilitates Kellogg in the transition of the raw material into a finished goods
through a series of production functions and activities. The supply chain personnel provides the
adequate support and assistance in maintaining the availability of the essential material require
for the facilitation of the respective production process.
Distribution
The respective process ensures the systemic flow of goods and offering produced by the
business organisation across the supply chain. Kellogg involves the transportation firms and
other logistical firms in order to make sure that the movement of the offering produced by the
organisation is in accordance with the predetermined flow and meets the safety and security
standards.
Customer interface
It includes all the efforts made by the business organisation so as to analyse the demands
of the customers and to promote customer interaction within the respective firm. Kellogg also
focuses on satisfying the desires and wants of the customer by facilitating them with best variety
of products.
Principles of Supply Chain Management

The principles of SCM provides the essential guidelines as well as the practices that can
be taken into consideration by Kellogg in order to run their supply chain in a prevalent manner
(Bastas and Liyanage, 2019). The principles governs the operation in a way that maximum profit
and scope is generated in the company. The various principles of supply chain management that
are capitalised by Kellogg organisation are mentioned below :-
 The primary principle can be described as the systematic and orderly segmentation of
the customers in diverse groups according to their service requirements. The organisation
needs is required to adapt their supply chain management process in accordance
formulates segments so as to enhance the productivity as well as the profits of the
respective business enterprise.
 The customization of the logistic network is essential for Kellogg in order to meet the
service requirements in a deliberate and efficient manner and to derive maximum profit
from the same.
 Kellogg should focus on monitoring the market trends in order to identify the essential
information which can help the organisation in the estimating the demands in the market
and to align the strategies in alignment of the supply chain process (Behl and Dutta,
2019).
 The sources of supply needs to managed in a productive way so as to reduce and
eliminate the chances of unnecessary waste material accumulation and to drop-off the
expenditure in the acquisition of the organisational materials.
 Kellogg's needs to optimise on a technological application that can help the organisation
to monitor the supply chain process consistently. It will help the company to implement
better decisions and to provide a clear picture of the movement of the goods and service's
across the supply chain.
Evaluate the importance of effective SCM from the perspective of customers, suppliers,
distributors and retailers.
Customers
 The biggest advantage of Supply chain management to the customers can be determined
as the enhanced customer satisfaction as to supply chain process ensures that the quality
products are provided to the customers at the right time and in the right quantity (Brinch,
2018).

 The supply chain also works to boost the delivery time of the products and services
catered by the business organisation so as to deliver the offering on time without any
delay.
 The utilisation of the supply chain management helps the customers to acquire safe and
secured goods and services as the respective process ensures that the movement of the
goods is carried out in a safe and risk free manner.
Suppliers
 The supply chain management helps the supplies to enhance their profit ratio by
monitoring and controlling the supply expenses in a productive way. The financial
position of the suppliers is also enhanced due to the capitalisation of an effective supply
chain management (Çankaya and Sezen, 2019). It enhances the profit leverage as well as
reduces the the utilisation of the fixed assets.
 The supply chain also works to enhance the cash flows of the suppliers due to the
enhanced speed in the flow of goods and service in the supply chain process. It also
facilitates in the reduction of the operating cost which in turn leads to less expenditure on
the production process. It helps the suppliers to reduce the overall cost related to the
supply chain management.
Distributor
 One of the major benefits of supply chain management is that it allows the distributors to
keep up with the requirement and demands in the market.
 It also helps the distributors to procure bulk inventories in order to achieve good profit
margin in between so as to enhance the profitableness of their business.
 Supply chain provides the opportunities to the distributors to modify, assemble and
customize then offering in order to ass more value to the existing line of offering of a
business organisation.
Retailers
 Supply chain management assists the retailers in delivering the products and services
relatively faster with increased efficiency. The market share of the retailers also hike up
as supply chain management leads to greater customer satisfaction which in turn helps
the retailers to capture larger share in the market environment.

 The effective optimisation of supply chain management assist the retailers in formulating
and developing sustainable and stabilized operations in the business organisation.
It can be stated that Supply chain management has various benefits associated with it as it
helps the business organisations to increase their rate of efficiency ( Dou, Zhu and Sarkis,
2018). The risk mitigation of the organisation is also improved due to the utilisation of a
prominent and reliable supply chain management. It also helps in maintaining the quality of the
products and services upto the establishes standards set in the business organisation.
Evaluate the cross functional and integrated approach of SCM with other areas of an
organisation.
Cross Functional Approach to SCM
The cross functional supply management can be characterised as the amalgamation of
various individuals from various different organisational roles in order to accomplish the goals
and objectives of the business operations. The cross functional grouping helps to alleviate the
effective utilisation of the resources in the business organisation (Fernie and Sparks, 2018).
Kellogg also incorporates the cross functional supply management approach in order to source or
develop a new and innovative offering and to facilitate in the management of the commodities
provided by the respective business organisation.
Kellogg utilises the cross functional teams in order to accomplish the time framed targets.
It also helps the organisation in facilia8itng new creative measures in the organisation as well as
the development of the team members in a professional manner.
Kellogg's cross function teams constitutes of experienced and specialised individuals from the
departments of users and purchasers. These respective indiv8iduals work together in order to
establish the strategies that can help the company to enhance their scope. The design and
development of the strategies on the basis of betterment and improvement of the current business
operations of the respective organisation.
The cross functional supply chain aims at building and developing an effective system for
the management and the organisation that can lead to the company towards higher innovation,
achievement, profit and success. The respective approach has facilitated Kellogg in the identify
and teaming the most suitable individuals together. It provides the procurement and operations
department to gain insights about the potential of the individuals and workers providing their

services in the department. Hence, it increases awareness about their possible expected
performance to motivate and boost their confidence to provide their best in the further supply
management operations.
Integrated approach to Supply Chain Management
Integrated supply chain can be defined as the business organisation's approach towards
planning and organising the resources of the business in accordance with the supply chain
management. In this approach, Kellogg establishing stable relationships with its respective
suppliers so as to carry out the management of the logistics as well as the distribution functions
in accordance with a centralised mechanism and eliminating the needs of various multiple
methods in the concerned business organisation (Konovalenko and Ludwig, 2019). The basic
advantage derived from this approach is that it helps the Kellogg to implement efficiency in
terms of cost and operations and to establishes a competent expertise in the business
organisation. Integrated Supply chain Model allows Kellogg to cooperate and coordinate the
supply chain function in a smooth manner among the top ranked professional in the business
enterprise. The supply chain management process becomes more centralised in nature which lead
to more sleek and efficient management within the same.
The integrated process also helps the company to implement and carry out the excellent
supply chain practices within the business organisation in order to reach the customers quickly
without any delay or interruptions and to fulfil and meet their demands in a deliberate and
effective manner.
This approach also allows the individuals working the supply chain management process to
openly communicate and interact with their concerned leader and manager to express their
concerns directly. It leads to better management process within the organisation as employees.
Integrated approach also helps the organisation to communicate at a better level 2with the
vendors so as to take their opinion into consideration which in turn also results in stronger and
unifies bonding between the management of the respective organisation and the vendors.
Kellogg is an internation organisation and the business operations of the company are scattered
all across the globe (Li, Holsapple and Goldsby, 2019). In order to reach the customer on such a
vast and global platform, it is very essential for the management to focus on integration its
supply chain order to leverage from the efficiency and productivity achieved from the same.

It can be said that integrated approach is supremely beneficial for the company in order to
acquire and establish a global access but it can be evaluated that an organisation needs to be
collaborative and coordinate a culture and environment in order to implement the integrated
approach in an appropriate manner (Lumineau and Oliveira, 2020). Unity in actions is required
to reach the common goals and objectives pertaining to the supply chain objectives of the
business organisation.
Kellogg needs to work towards the development and incorporation of both the above mentioned
approaches in its supply chain management system in order to build a capable procedure which
can aid the company to reach greater heights in the industry environment.
Evaluate a supply chain strategy within an organisation and present proposals for improvement
Supply Chain Strategy
In order to lead the market, it is important for Kelloggs to formulate and incorporate a
supply chain strategy that can uplift the standard of the supply chain management operation in
the organisation. The industry is very competitive in nature and in order to sustain the business
functions and operations in the same, it is essential for the respective company to form brilliant
strategies that can be capitalised so as to gain good competitive benefits in the target
marketplace.
The strategy plan that can help the Kelloggs in achieving higher position in its concerned
industry are as follows :-
Establishment of a flexible and elastic supply chain
A flexible supply chain will help the company to implement sudden alteration and
modification in the supply chain very effectively. It will help the individuals involves in the
supply chain to become open to change and adapt to the changes quickly in order to intensify and
raise the operations persisting in the supply chain in order to suit the uncertainties prevailing in
the market dimensions. Kelloggs can add more flexibility in its supply chain operations so as to
allow the individuals involved in the supply chain management process to take immediate
actions in the time of emergency in order reduce the consequences of the risks and threats in the
market domain.
Innovation
Innovation can be characterised as one of the drivers for achieving success in any given
industry. Kelloggs also need to tap into the area of creativity and innovation advancements in its

existing lie of supply chain so as to build a stronger network and to optimize the benefits
associated with the same. New and improved goods and services need to be introduced in the
target market through powerful chain of sources in order to make the products and offering
available to every potential customer at the precise time (Luthra and Mangla, 2018). Kelloggs
can focus on the digitisation of the supply chain in order add innovation in the current process so
as to provide good competition to the rival companies in its respective industry.
Sustainability
Supply chain can have major implications on the environment as well as the society due to
emissions generated from transportation and facilitation networks. The waste generation in the
industries and factories can also have negative influence on the natural environment . Kelloggs
need to design its supply chain in a manner that the organisation reduces the environmental
damage to the minimum (Mehdikhani and Valmohammadi, 2019). In order to reduce the effects
and consequences of the business operation on the environment, it becomes necessary for the
company to focus on developing a sustainable supply chain so as to contribute in the
minimisation of the global disturbance.
Kelloggs can implement a strategy that incorporates the sustainability principles so as to guide
and influence the decision making process of the individuals working in the organisation. The
respective strategy will help in guiding the company in forming and implementing decisions
pertaining to the design and development of the products and services, logistics and
configuration, sourcing etc.
Proposal for improvement
There are numerous recommendations that can be taken into consideration by Kelloggs in order
to improve its current Supply Chain management. Few of the same are mentioned below :-
 One of the most difficult part of supply chain management is to prominently and
consistently maintain the availability of inventory in order to facilitate the customers with
the products and services on timely basis. Automatic Purchasing will help Kelloggs to
concentrate effectively on procuring the raw material with consistency. Thus, it will
allow the employees catering their services in the business organisation to align their
energies and focus towards other important tasks and operations.
 The company can focus on enhancing the transparency in its supply chain system so as to
easily monitor any deviation, fraud or mistake in the system. It will help Kelloggs to

identify the deviations in the supply chain process and to prevent the respective
organisation from unnecessary losses within the concerned business enterprise.
 The business organisation needs to focus more towards the analysing and examining the
performance of the vendors. This is important so as to carry out smooth and fast
operations of the supply chain movement (Singh and Kumar, 2020). The performance
can also be ranked by the organisation through the utilisation of technology
advancements in order to realise the4 degree of productivity in the vendors performance.
 The supplier relationship with the organisation is one of the building blocks from the
organisation's production process. It is advisable for Kelloggs to maintain smooth and
flourishing relationship with its suppliers in order to carry out the supply chain
management process in a good and systematic manner.
 It can also be recommended to the management of Kelloggs to formulate and establish a
detailed spectrum of guideline that need to be followed in order ensure ethicality and
credibility in operations carried out by the worker engrosses in the respective
management process.
 Then company can also emphasis on providing training to the employees working in the
supply chain management process so as to increase their skills and knowledge as well as
the competence so as to deliver their assigned roles with productivity. The training and
development programs can enhance the work ability of the employees and can prepare
them to tackle and overcome the uncertainties prevailing the market environment. It will
further lead to the professional development of the employees in their field of work and
will enhance their work experience for betterment in their performance.
 Kelloggs can also involve and engage its information technological department in the
supply chain management process so as to increase the accuracy and quality of the
operations. IT will also help the company increase its control over the manufacturing and
production process (Tu, 2018). The effective management of inventory can be
implements in the particular organisation with the enhanced role of IT in the supply chain
system. The connection and interaction among the partners involves in the supply chain
management can be increased with the help of IT advancements.

 Adoption and emphasis on the Information technology can also helps Kelloggs to track
the order effectively and to facilitate the delivery according to the predetermined time to
the provided to the customers so as to eliminate the chances of late delivery.
CONCLUSION
From the above analysed section, it can be summarised the effective regulation of supply chain
process as well as the incorporation of supply chain principles are very prominent in order to
increase and heighten the supply chain management operations of Kelloggs organisation. The
company needs to focus towards in alleviating the integrated approach in its management so as
to gain the perks associated with the centralised management of operations in the business unit.
In order to deal with the current competition in the market, Kelloggs needs to up its strategy
game and should concentrate on develop met and implementation of excellent strategies so as to
increase the retention as well as the satisfaction of the target consumers. The company's supply
chain operations has been good so far but there various new advancements that needs to be added
in order to make the supply chain movement more efficient and productive.
Overall, it can be stated that the respective organisation is doing well in the market but in
order to dominate the market environment and to facilitate the acquisition of the largest market
share, the company needs to keep modifying its supply chain according to the market signal and
in accordance with the changing trends in the business environment.

REFERENCES
Books and Journal
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diagnostics for organizational sustainability improvement. Sustainable Production and
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Behl, A. and Dutta, P., 2019. Humanitarian supply chain management: a thematic literature
review and future directions of research. Annals of Operations Research, 283(1),
pp.1001-1044.
Brinch, M., 2018. Understanding the value of big data in supply chain management and its
business processes. International Journal of Operations & Production Management.
Çankaya, S.Y. and Sezen, B., 2019. Effects of green supply chain management practices on
sustainability performance. Journal of Manufacturing Technology Management.
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challenges in the retail supply chain. Kogan page publishers.
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Li, X., Holsapple, C.W. and Goldsby, T.J., 2019. The structural impact of supply chain
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Lumineau, F. and Oliveira, N., 2020. Reinvigorating the study of opportunism in supply chain
management. Journal of Supply Chain Management, 56(1), pp.73-87.
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management practices in an emerging economy’s context. Resources, Conservation and
Recycling, 138, pp.194-206.
Mehdikhani, R. and Valmohammadi, C., 2019. Strategic collaboration and sustainable supply
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due to globalization: an empirical study. Benchmarking: An International Journal.
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