Supply Chain Management- Capstone Project for Postgraduate Diploma in Supply Chain Management

Supply Chain Management- Capstone Project
Postgraduate Diploma in Supply Chain Management
Assignment Cover page
Student Information (To be filled by the student)
Name of the Student:
Contact number:
Email:
Programme name: Postgraduate Diploma in Supply Chain Management
Module: Capstone Project
Schedule:SCMCAPSFA1807A
Date Issued: 18/07/2018
Submission deadline: 11/08/2018
Number of pages:
Faculty Information
Faculty Email
Vivek Mohan [e-mail]
Declaration
I certify the content of the assignment to be my own and original work and that all sources have been
accurately reported and acknowledged, and that this document has not previously been submitted in
its entirety or in part at any educational establishment.
I hereby also confirm that I have read and understand the contents of the Exeed School of Business
and Finance policy on Academic Integrity: The Prevention and Handling of Plagiarism.
Participant Signature Signature of line manager
FOR OFFICE USE
DATE RECIEVED
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Supply Chain Management- Capstone Project
Assessor Remarks on overall report:
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(Note: Detailed remarks for every Assessment Criteria (AC)
should be provided by the assessor by adding comments at the
answers written by the learner)
Suggestions for Improvement:
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The following grading criteria will be applicable for this assignment brief:
Marks Grade
70 to 100 A - Distinction
60 to 69 B - Merit
50 to 59 C -
Satisfactory
40 to 49 D - Pass
Less than 40 F - Fail
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Supply Chain Management- Capstone Project
Table of Contents
Response to Task 1....................................................................................................4
Summary of the chosen organization and role of the supply chain function............4
KFC at a glance...................................................................................................4
KFC mission and vision....................................................................................... 5
Role of KFC’s Supply Chain Function.....................................................................5
3 Supply chain management strategies that will aid KFC in achieving its goals......9
Reducing unnecessary complexity in the supply chain........................................9
Response to Task 2.................................................................................................. 10
KFC Procurement and Logistic Plan......................................................................10
SWOT analysis of KFC......................................................................................10
PESTEL analysis of KFC...................................................................................12
KFC’s Procurement Plan.......................................................................................13
KFC Logistics plan.................................................................................................13
Role of the block chain technology........................................................................14
Response to Task 3.................................................................................................. 15
Risk Assessment of the scenario...........................................................................15
Plan B.................................................................................................................... 20
Various Payment options for shipment..................................................................20
Bibliography.............................................................................................................. 22
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Supply Chain Management- Capstone Project
Response to Task 1:
Summary of the chosen organization and role of the supply chain
function:
It is the second largest restaurant chain in the world after McDonald’s. It is
known as Kentucky Fried Chicken as it is headquartered in Louisville, Kentucky. The
fast food restaurant mainly supplies fried chickens. Colonel Harland Sanders, who
sold fried chicken in the roadside during the economic depression that took place in
the 1930’s, first opened the food centre. His brand was famously known as “Colonel
Sanders” and his picture was proudly used as the brand image. Colonel Sander
mainly challenged the hamburgers and popularized the fried chicken in America. He
became famous in the American cultural history. KFC restaurant is a subsidiary of
the Yum! Brand, a company that owns Pizza hut, Taco Bell and WingStreet food
chains.
KFC at a glance:
Figure 1. Products sold by KFC
(Source: https://theregister.co.nz/checkout/2017/11/kfc-sorts-christmas-gifting-its-
latest-retail-range)
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Supply Chain Management- Capstone Project
KFC has grabbed the international food market in Jamaica, China, and Mexico and
so on. It has become the largest single market in China. The products in KFC are
made of pressure-fried chicken mixed with 11 herbs and spices. As reported the
sales of KFC in the year 2013 was $23 billion. By 2013, KFC had numerous outlets
in various countries. Statistics reveal that the outlets of KFC are spread over 118
countries with 4,563 outlets in China, 4,491 in US and in rest of the world about
9,821. Total number of outlets that KFC has as reported in the year 2017 is 21,487.
KFC mission and vision:
The mission of the restaurant is to deliver good quality food to the customers
so that they are satisfied with the service provided by the brand. KFC aims at
bringing a smile on the customers face every time they consume their products and
ensure that the brand loyalty is maintained. The quality of the products should be
such that the customers come back to eat the items offered by KFC.
The vision of KFC is to provide fast food services to customers thereby
increasing the revenue and bringing satisfaction to the consumers at the same time.
It is also aimed at increasing the profits of the company without compromising with
the quality of its products.
Role of KFC’s Supply Chain Function:
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Supply Chain Management- Capstone Project
Figure 2. Supply chain functions
(Source: https://www.quora.com/What-is-meant-by-upstream-and-downstream-
Supply-Chain)
The Supply Chain functions as the most important aspect for the smooth working of
any restaurant. It is the integration of all the factors that contribute to supply chain
like the demand planning, supply planning, suppliers, manufacturers and
warehouses. Supply chain function is a complex procedure that involves two
methods of supply. One is the Supplier tier-1, which is also known as the direct
supplier that supplies raw materials directly to the operations, while the other is the
Supplier tier-2 that is called the indirect supplier who supplies raw materials to
Supplier tier-1. The more efficient the supply chain management of a restaurant is,
the more the company will be able to achieve its mission and vision. In other words,
it can be said that the mission and vision of a fast food company is dependent on the
supply chain management. The demand of the consumers also affect the supply
chain of KFC largely. Some of the activities of the supply chain management are
listed below:
1. Ordering Process:
Initially KFC used RepSol software for ordering process. However, the supply of its
products to the customers are now performed by facial recognition in China. The
facial recognition machine recognizes the age and mood of the customer. According
to the mood, the machine suggests some preferable orders. It also remembers the
last order placed by the customer and according to that, the machine suggests the
orders. This technique of placing order and supplying the orders have started in a
fast food KFC outlet in Beijing. However, the process of ordering has been provided
in the form of a flowchart.
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