KFC's Supply Chain Management: Efficiency and Organizational Success

This report provides an in-depth analysis of KFC's operation management practices, focusing on supply chain management and its impact on organizational efficiency. It explores how technology, particularly AI, is embedded in the supply chain to enhance inventory management and demand prediction. The report further identifies supporting functions, such as the marketing department's role in promoting products and building relationships with suppliers, and how these contribute to KFC's overall success. The analysis highlights the benefits of effective supply chain strategies, including cost reduction, improved customer satisfaction, and enhanced brand image, ultimately demonstrating how KFC leverages these practices to maintain a competitive advantage in the fast-food industry.

CW1 WRITTEN
ASSIGNMENT

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
1. Operation management practice in KFC.................................................................................2
2. Analysing the impact of operation management practice with regard to efficiency...............3
3- Evaluating how technology could be embedded in the process of supply chain management
or how this had already been achieved........................................................................................4
4- What supporting functions are connected to supply chain practice and how can they assist
with assuring organizational success...........................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Operation management is defined as the process of managing business functions and
operations and other activities in effective and systematic manner. It is usually concerned with
organising, planning, managing, and supervising each operation of a company that sustain in the
market and run their business systematically. The current assignment will be based on KFC,
which falls under the category of leading, fast food restaurant chains in the US. The study will
explain, one operation management practice within chosen company, and critically analyse how
this practice impacts business in regard to efficiency. Furthermore, the report will justify how
technology can be embedded in this procedure. Lastly, the assignment will specify supporting
functions linked to selected practice and how can they assist with assuring organizational
success.
MAIN BODY
1. Operation management practice in KFC
Supply chain management is referred as the process of managing the flow of the products
in order to enhance productivity gain competitive advantage in the industry. It is an important
aspect for KFC for managing their operations effectively and have a better market image in the
industry. By effectively managing its supply chain, the organization may be able to increase its
growth opportunities in the market (Cole, Stevenson and Aitken, 2019). This area may represent
the cumulative effort of the organization in order to deliver their products to the end consumers
appropriately. It may help in maintaining better relationships with the key stakeholders such as
suppliers, customers and business which may be crucial in order to ensure sustainability of the
business. Purchasing is considered as one of the functions of supply chain management which
may explain the process of procuring raw material and different resources. They may be
mandatory in order to manage the production process of the business and may require due
consideration by the management in order to increase profitability of the business.
The other function is managing operations of the business effectively and allocating all the
resources and employees in order to achieve the organizational goals appropriately by the
business. The arrangement for transportation of the prepared goods may come under supply
chain management and is a significant part of the overall practice that is performed by KFC.
There are several functions with are directly or indirectly related with the supply chain
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management and it is the responsibility of the business to organize them properly (Craighead,
Ketchen Jr. and Darby, 2020). The organization may require appropriate coordination and
cooperation in order to manage all these areas which are related to supply chain management in
order to achieve better results and gain better image in the market. This may be helpful to
increase the competitive advantage of the company in the industry and increase its overall
productivity.
2. Analysing the impact of operation management practice with regard to efficiency
Supply chain management may be a significant factor for KFC as it is a production
company which is highly dependent on the different factors of this operational practice. It may
be beneficial for the business to enhance their efficiency by properly utilizing various concepts in
the supply chain management such as cutting the operational costs, improve customer
satisfaction, ensure appropriate supply of goods etc. There may be different aspect which may
have a positive impact over the management in order to prepare better strategies for increasing
efficiency of the business and increasing its brand image in the market (Koberg and Longoni,
2019). It is one of the major aspects of operations management which may help the business to
carry out their business practices smoothly.
KFC is one of the largest fast-food chain the world and it may be difficult to manage its
operations. With the help of appropriate supply chain strategies and techniques, the organization
may have a better image in the market. The organization may be able to make effective changes
in their working nature which may be helpful in order to increase the overall productivity. By
managing its supply chain department, the organization may be able to increase their
opportunities to expand in various global markets and increase their market share in the industry.
These activities of the business may increase their sustainability in the market and provide better
assistance in order to grab these opportunities for effective expansion (Zekhnini and et.al., 2020).
This may help the business to achieve success and gain advantage in the highly dynamic
environment. The organization may be able to have a better network of suppliers with the help of
effective supply chain management. This aspect may be crucial for the company in order to
procure high quality raw material at the best prices and increase their overall profitability.
This area may be helpful for the business in order to manage their quality of products
which reaches the end user. It may have a positive impact on the brand image of the business and
may be helpful in order to get positive feedbacks from the customers. These feedbacks may be
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valuable for the business in order to fulfil the needs of the customers and build better
relationships with them. This operations management practice is helpful for KFC, in order to
manage the thereat from the risks that may frequently arise for the business and have a negative
impact overt its overall productivity (Min, Zacharia and Smith, 2019). This aspect of business
may have a significant impact over the business and may reduce the barriers which may increase
efficiency of the company. The brand may be able to increase motivation of their workforce with
the help of appropriate supply chain management and have a better impact on their satisfaction
levels. It may increase their engagement towards the organizational goals and may be useful for
the company to enhance the experience of customers towards the brand.
The supply chain management may be helpful in increasing efficiency of the business by
retaining their customers by establishing better relationship with them. This aspect may critically
analyse the demand and supply of the products in the market and may provide the management
with valuable inputs in order to prepare effective strategies. These strategies may be resourceful
for the company to make effective changes in their current approach and increasing consumer
satisfaction. KFC may be able to provide better assistance to the customers and gain their trust
which may enhance their growth opportunities in the market. These aspects may be the major
reason of the overall development of the company and may have a positive impact over the
business activities (Xu and et.al., 2020). The effective supply chain management may be helpful
for the company for reducing the negative impact of the legalities that may create barriers for the
business in order to operate appropriately in the market. With the help of this practice the
organization may be able to maintain their overall operational practices and enhance their
efficiency.
3- Evaluating how technology could be embedded in the process of supply chain management or
how this had already been achieved.
There are several forces or factors, accessible in the world that put direct impact on
organizations and businesses. In case of KFC, management has already considered a specific
factor or force, that they implement in effective manner in the workplace (Helo and Hao, 2021).
They take approach to implement advanced technology, that in turn provide desire outcomes to
company. In the context of supply chain management practice, technology has already been
achieved and embedded in this procedure, in systematic manner. They implement technology in
term of taking order online and record of inventory, which is quite essential and beneficial for
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organizational success. By maintaining online record of inventory, they had predicted demand
and needs of customers as it changes seasonally or even usually. AI in the recent time, it the best
technology that KFC use to manage their inventory, in effective manner that is important for it to
do so systematically.
It is fact that organization has embedded in process of supply chain management, in form
of recording inventory online, which is important for management to do that. The best thing
about the Technology event day in supply chain is that it enables manager of a choose and
company to predict and make appropriate prediction of demand arise from customers that is
important for the company to consider. The best thing about demand prediction is that it enables
company to identify what customers want and then make a plan to arrange everything that help
to enhance their satisfaction level and support to build wide customer base (Pournader and et.al.,
2021). AI technology utilised for the purpose of managing supply chain or inventory in turn
provide a lot of benefit to KFC, for example it improves access to information and insights of
market demand. Recently each and every organisation in the context of similar practice use and
prefer Artificial Intelligence because it helps to determine those factors that might be impact
organisation in positive and negative manner. It supports to analyse the trend that customers
prefer to follow and refer to others. There are many ways that define how technology has already
been achieved and amended in choosing process (Olan and et.al., 2021). For example, it utilises
to take right decision about products such as burger and other that firm implement to offer to
target audience. Said that the foundation for a central decision making is inside supply chain
technology such as AI make decision making quite easier, and enable management to evaluate
data, collect customer demand, supply lead time, and other insights.
AI technology in KFC may include decision support features that help people make the
best decision in quick and effective manner. This may permit management to John data and
perform productively in the context of different business situation. It can be said that technology
in supply chain management practice may support to enhance ability. It is quite easier for
management with AI technology to consider problems and create new organisational prospect
much faster when they me better insight. In today’s competitive business environment
implementation and usage of AI technology make supply chain and inventory management quite
effective that in turn lead to increase customer satisfaction along with stakeholder’s expectation
fulfilment that drive the attention of KFC toward for their success and growth. With usage of AI
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technology in term of online record inventory organisation may drive their attention towards
taking the bed this season and developing effective strategies in form of expansion with strong in
a wide base of target audience. It aids organisation to gain competitive advantages in term of
increasing productivity, performance, profitability level and other things. Process of inventory
management and supply chain is not that easy but KFC may achieve objective related to that by
using the best technology.
4- What supporting functions are connected to supply chain practice and how can they assist
with assuring organizational success.
Marketing department linked to supply chain management practice-
Each function in the KFC support the chosen management practice in effective manner
and assist to achieve unpredictable organisational success. The relation between marketing and
supply chain is the best example that specify organisation success and growth in the market.
Marketing department promote venture products and services such as burger, fry rice, etc. While,
supply chain helps to build relations with sustainable suppliers who are able to provide raw
materials that organisation use to prepare or cook items for the customer (Feitó-Cespón and
et.al., 2021). By working together or department helps to create great customer value, in term of
developing, maintaining, and increasing various relationship with external stakeholders. It is fact
that the role of marketing through the concept of advertising, relationship marketing, and
marketing orientation is crucial for organisational success. Their collaboration may support KFC
to sustain in the market and give tough competition to the rivals.
Research & development department connected to chosen operation management practice-
Another function that related to choose and operation management practice and assist
with ushering organisational success is research and development department. The relation
between four departments may support organisation to gain competitive advantages in terms of
generating revenue increasing profitability and building strong customer base that is not easy for
any company to do that. Research and development department connected with supply chain in
terms of collecting information that they provide or share with each other for purpose of
producing and providing products, according to customers need and requirements (Krishnan and
et.al., 2021). By working together, they may make an appropriate prediction about the demand of
target market that management may consider and then take decision accordingly. It may benefit
in varied term such as to gain the attention of new customers and retain existing with them.
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Human resource management linked to supply chain-
Another function that links to choose operation management practises is HRM. They may
relate with each other on the basis of fulfilling the requirement such as human resource. For
example, human resource department may develop plan to hire people who can support supply
chain management operation success and contribute to increase its performance level which is
quite essential for the organisational success. The collaboration in relation may support company
to be competitive and stand in the same manner in the market where the competition level is
high. HRM hire skilled and talented people who can perform their role in supply chain
management in this manner they work together. Both departments share information related to
HR with each other by using a specific communication tool and collaborate together to fulfil the
need of each stakeholders including the owner of KFC, that is essential.
IT function relation to supply chain management-
Along with above three, supply chain management may work with other function as well.
IT section linked to chosen operation management practice in form of solving technical issue in
the systems and technologies that this department use. It is important for them to work with each
other, in effective and appropriate manner. they both support organizational success and assure
the same thing, in regard to which each function support in systematic and appropriate term, that
is essential for them to do that (Lim and et.al., 2021). They support each other in term of
developing understanding their needs and requirements that plays significant role in the success
and unexpected growth of company.
CONCLUSION
On the basis of above discussion, it has been concluded that supply chain practice within
organization had contributed to increase the productivity and performance level of business. The
chosen operation management practises support to achieve in an objective of the company which
in turn provide unpredictable benefits to each stakeholders. Furthermore, it has been identified
from about discussion is that technology implementation in the workplace had supported
business and management to deliver the best product to customer in appropriate manner. It has
been determining that supply chain management relationship with other sections had enable
company to assure business success in the future. Their collaboration and coordination, with
other departments had contributed to increased organizational success and growth in market,
where number of companies has been operated in fast food industry.
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REFERENCES
Book and Journals
Cole, R., Stevenson, M. and Aitken, J., 2019. Blockchain technology: implications for operations
and supply chain management. Supply Chain Management: An International Journal.
Craighead, C.W., Ketchen Jr, D.J. and Darby, J.L., 2020. Pandemics and supply chain
management research: Toward a theoretical toolbox. Decision Sciences. 51(4). pp.838-866.
Feitó-Cespón, M and et.al., 2021. A fuzzy inference based scenario building in two-stage
optimization framework for sustainable recycling supply chain redesign. Expert Systems
with Applications. 165. p.113906.
Helo, P. and Hao, Y., 2021. Artificial intelligence in operations management and supply chain
management: an exploratory case study. Production Planning & Control. pp.1-18.
Koberg, E. and Longoni, A., 2019. A systematic review of sustainable supply chain management
in global supply chains. Journal of cleaner production. 207. pp.1084-1098.
Krishnan, R and et.al., 2021. Collaborative innovation and sustainability in the food supply
chain-evidence from farmer producer organisations. Resources, Conservation and
Recycling. 168. p.105253.
Lim, M. K and et.al., 2021. A literature review of blockchain technology applications in supply
chains: A comprehensive analysis of themes, methodologies and industries. Computers &
Industrial Engineering. 154. p.107133.
Min, S., Zacharia, Z.G. and Smith, C.D., 2019. Defining supply chain management: in the past,
present, and future. Journal of Business Logistics. 40(1). pp.44-55.
Olan, F and et.al., 2021. The role of Artificial Intelligence networks in sustainable supply chain
finance for food and drink industry. International Journal of Production Research. pp.1-
16.
Pournader, M and et.al., 2021. Artificial intelligence applications in supply chain management.
International Journal of Production Economics 241. p.108250.
Xu, S. and et.al., 2020. Disruption risks in supply chain management: a literature review based
on bibliometric analysis. International Journal of Production Research. 58(11). pp.3508-
3526.
Zekhnini, K. and et.al., 2020. Supply chain management 4.0: a literature review and research
framework. Benchmarking: An International Journal.
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