Kellogg's Cornflakes: Operations and Supply Chain Analysis Report

This report provides a comprehensive analysis of Kellogg's Cornflakes operations and supply chain management. It begins by introducing the product and justifying its selection, followed by a detailed description of the operational processes involved in production, including the use of Just-in-Time techniques and innovative distribution methods. The report then illustrates the supply chain with a diagram, clearly identifying upstream and downstream organizations and explaining their roles. It further examines the various organizations within the supply chain, their locations, and communication methods. A critical evaluation of Kellogg's operations management is presented, utilizing relevant concepts and frameworks, alongside an assessment of effective and ineffective processes. The report also highlights the relevance of lean management, its pros, and cons, and concludes with practical recommendations for supply chain improvement.

Operations and Supply
Management

Contents
Operations and Supply Management...........................................................................................................1
INTRODUCTION.......................................................................................................................................3
1: Introduce the product and justify why you have chosen the product...................................................3
2: Describe the operation processes involved in producing the product..................................................4
3: Using a diagram illustrate and explain the supply chain for your product clearly identifying the
upstream and downstream organizations.................................................................................................5
4.Provide an explanation of the different organisations involved in the supply chain, whether they are
based in the UK or overseas and how they communicate with each other...............................................7
5. Critically evaluate the product’s operations management using relevant concepts, theories and
frameworks to describe how they are used to meet customer’s need.......................................................7
6. Identify what is effective and ineffective in the product’s operations processes and highlight the
relevance, pros, and cons of lean management........................................................................................9
7.Provide recommendations for improvement siting practical examples for the management of the
supply chain of the product....................................................................................................................10
Conclusion.................................................................................................................................................11
REFERENCES..........................................................................................................................................12

INTRODUCTION
Operation and supply chain management encompasses the process of planning, designing
and improving the system in order to timely deliver the product and services of entity. The entire
management is responsible to effective analyze the changing requirement of customer based on
which production and delivery of final item takes place. To bridge the gap between producer and
consumer supply network acts as a pipeline that helps to deliver adequate information as well as
material (Cao and Zhang, 2011). For the better understanding of report Kellogg’s Cornflakes
company has been selected whose headquarter is in Michigan US. The company promotes
several ways of cooking the cereal without actually affecting its goodness or nutritional level.
The company stretched its manufacturing unit in several countries like United Kingdom, Canada,
Asia and so on. It was promoted as a convenience food which is a combination of health and
taste. This report covers topics like explain the operation process as well as supply chain to
illustrate upstream and downstream organization. Explain diverse organization which is involved
in the process of supply chains. Critically explain product operation management by using
suitable theory, concept or framework in order to cater the requirements of customer. Highlight
effective or ineffective operation process of product and display suitable recommendations for
improvement.
1: Introduce the product and justify why you have chosen the product
With the passage of time and impact of internet people understood the essence to remain
healthy which require nutritious diet. Rising health awareness amongst the citizen led them to
substitute their requirements and move towards organic and healthy food. Kellogg’s Cornflakes
company was potential enough to understand the upcoming requirements of the public and began
its operations in the year 1906. The well developed strategy of preparing the convenience food
has led the Cornflakes products to diversify in various regions. Diverse use of the cereals has
generated the interest and loyalty of end consumer. To retain its position amongst the society
Kellogg’s Cornflakes company too takes the Corporate Social Responsibility initiatives. Like,
the company offer nutritious breakfast to the children within UK.
The main reason behind choosing the Kellogg’s Cornflakes company is that it immensely
focuses on the sustainable business due to which it gives value to customer, society and
environment. Sustainable growth led company to install manufacturing plant in more than 15

countries and has effectively diversified its market worldwide. The internal manager of company
has effectively designed its supply chain like the entity receives all the raw material such as rice,
cereals, sugar, corn and so from the primary supply. This raw material is further converted into
the final product with the assistance of operation management. The reason of coming upon into
various variants and seek the requirements of different customer is the dependency on research
and development department that constantly gain deep insights from the market and put valuable
figure forwards (Sarkis, 2012). These data are further utilized by the company with the objective
to continuously bring improvements in the products and cover diverse need successfully. These
are some of the ways on the basis of which Kellogg’s Cornflakes is widely sold and consumed
meal by different target market like children, adult and old age people. So by taking Kellogg’s
Cornflakes as a product significance is given on the role of operations and supply chain
management in order to participate in the global market and successfully accomplish existing
and anticipated demand of customers.
2: Describe the operation processes involved in producing the product
Operation process is related to the producing of final output by making extensive use of
input available in form of raw material, human capital and machinery. This process plays a
major role in taking the customer order and accordingly delivers them to the respective places. It
basically encompasses the process like anticipating customer requirement, plan out
modifications, procurement of raw material, designing of product and successfully delivers the
final output. In context to the Kellogg’s Cornflakes is recognized as one of the leading products
that has successfully build the loyalty of customer all over the nation. Today Kellogg’s Corn
flakes has effectively become the market leader within health and nutrition market. Different
division of the department immensely supports the operation process. As the marketing
department is responsible to conduct extensive market research under which primary focus is
given to observe the customer behavior (Ahi and Searcy, 2013). This has extensively helped the
company to continuously improve their offerings and expand the portfolio of products. All the
valuable data are transmitted to the operation department and efficient team well design the
product which suits the need of customer. Some of the operation process used for Kellogg’s
Cornflakes is discussed down below:
Just in time techniques: In general most of the food and beverages company keep the
stock in bulk in order to meet the rapid increase in demand. Although it helps in sustaining the

availability of item but it require huge cost in terms of storing the food in appropriate warehouse.
Kellogg’s company due to the efficient operation process has made the desirable use of well
known inventory management technique this is Just in time method. Here the orders are
immediately fulfilled once customer places their order. Moreover, the company tries to convert
their uncertain customer to their ultimate consumer; the focus is not to waste time in that process
of conversion so that the excessive cost can be reduced.
Employing innovative techniques for desirable distribution and restocking: Computers
and special software are used by the company in order to overview their orders. The
collaboration with TDG has led to more efficient distribution system for the company the
systems are used for stockholding so that the shelves are always full and the orders by customers
are delivered on time. TDG works on keeping the warehouse cost to its minimum through
transportation skill and computerized heating. Computerized stockholding tells the company
when selves so that they can take care of it (Winter and Knemeyer, 2013). Once the information
is passed to them the order is placed to Kelloggs manufacturing base to refill the stock which
result in increase in company’s profit by minimizing the chances of wastage.
3: Using a diagram illustrate and explain the supply chain for your product clearly identifying the
upstream and downstream organizations
Supply chain refers to the network of chain that help to minimize the gap between
organization as well as target market by successfully delivering the final product within
stipulated time period. This pipeline helps the company to get the raw material in order to carry
out the manufacturing process and effectively deliver the final product to the ultimate user
(Kelloggs Supply Chain Process - From Factory to Supermarket Shelves, 2020). Explanation of
the supply chain in form of upstream and downstream is listed down below:

Raw material: Kelloggs Cornflakes is a part of secondary sector business where it
receives the raw material such as corn, wheat, sugar, cocoa and so on from the primary suppliers.
Efforts are taken to receive the quality raw material so that so that diverse variety of breakfast
cereals as well as snacks can be prepared. As the company produces different varieties of the
product so it is necessary to timely receive the order and cater the requirement of customer
successfully.
Suppliers: It is the upstream part of an organization as Kelloggs is a large company due
to which it is vital for the entity to locate the business near its supplier in order to reduce the
transportation cost, delivery cost and imposition of tasks. There are the areas where business can
function appropriately. As company has diversified manufacturing units within overseas like
Asia and UK so the plant needs to be installed as per the convenience of suppliers.
Manufacture: It involve the participation of production or operation unit that helps in
changing the state of products. In relation to the Kelloggs company does not compromise on the
basis of manufacturing. For instance, according to FDF company has signed up agreements with
around twenty one major companies in terms to carry out sustainable growth. Initiatives are
taken in terms to reduce carbon emission, reduce wastage, adopt desirable level of packaging and
improve water efficiency and so on. This led company to maintain effective image.
Distribution: For effective distribution Kelloggs company share the transportation
channel with companies like Kimberley Clark. This led the company to overcome the chances of
competition and effectively share large market share. Similarly, respected company liaison
relationship with business that fall under tertiary sector like big retail stores such as Tesco. This

led the entity to get suitable shelves where they can properly display their product and get better
visibility of customer (Monczka and et. al., 2015). Good relationship leads to the win-win
relationship for different parties.
Customer: They are the ultimate user of the product so the company delivers
combination of nutritious and affordable product. The role of both upstream and downstream
relationship with supply chain like TDG provide the warehouse at low prices and retail stores
such as Tesco and Asda offers desirable allocation to customer. This better helps to perceive the
attention of customer.
4.Provide an explanation of the different organisations involved in the supply chain, whether
they are based in the UK or overseas and how they communicate with each other.
There are large number of organizations involved in the process of supply chain across the
whole wide world. In order to satisfy needs and requirements of customers organisation produce
high quality offerings according to their demands. In the present context of Kelloggs company, it
has been identified that they provide food products to their customers which have large number
of rivalry or competitive firms at the marketplace deals in similar sector. Nestle and Cadbury are
the main rivalry firms which provide similar sort of food items to customers which creates
competition at the marketplace. They supply their offering to customers in different countries
across the world with the help of effective supply chain management. It has been said that a
simple supply chain is developed with different elements which are mainly linked with the
movement of goods and services. An effective supply chain starts from customers and includes
distribution, transportation, planning and many other factors.
While doing business operations, it has been identified that the head office of the
company need to coordinate as well as communicate with their branches across the world on a
regular basis. In order to communicate with them in an effective manner, higher authority
develop some virtual teams so they can easily share their thoughts and ideas as well as provide
them task on a regular basis. This is one of the most effective method which assist in producing
high quality goods and services Along with this, another method used by top management teams
are Web based showcasing which mainly developed by them in order to conduct formal meetings
with their overseas business entities in an effective manner. Both these methods are highly
technological and upgraded which assist in communicating effectively with different

organisations at a same time in different countries. As a result, they can perform all their
business operations in an appropriate manner and produce high quality products and services
which satisfy customers in an efficient way.
5. Critically evaluate the product’s operations management using relevant concepts, theories and
frameworks to describe how they are used to meet customer’s need.
Operations management refers to the area of management which is mainly concerned with
the controlling as well as designing the overall procedure of production along with redesigning
business operations in order to manufacturing high quality goods and services. OM is mainly
concerned with supervising, planning as well as organizing in reference to production or
manufacturing of services. There are some operation management theories which assist in
fulfilling the wants and needs of customers by effectively implementing them at workplace.
Some of these operation management theories are going to be discussed as follows:
Total Quality Management (TQM): It refers to one of the most effective approach used by
organizations as it is highly focused on enhancing the overall quality of products and services
which are manufactured by the organisation. It define as an approach used by management team
for long-term success with the help of customer satisfaction. In a TQM procedure, each and
every staff members of a business entity organization participates in order to improve the overall
processes, services, products as well as the culture where they work. This will aid them in
manufacturing high quality goods and services. This approach is mainly customer-centred which
says that continuous development is necessary so each and every individual will feel satisfied
with the consumption of products offered by companies. In reference to Kelloggs company, it is
said that this approach is used by managers so that they can produce high quality products and
services which as a result satisfy the requirements of customers. This as a result help in
developing positive relationship with the consumers and retain them for a longer period of time.
Six sigma: Six Sigma define as a quality management tool commonly adopted by large
number of business entity in order to improve their current procedure which is used by them to
manufacture products and services. This is a tool used to identify errors or defects at the time of
manufacturing goods and services. The main aim is to streamline the quality controlling in the
manufacturing or production processes so that there might be little or no variance arise. Six
Sigma tool is designed to assist organisations in order to maintain quality while manufacturing
goods. In addition to this, goal of this tool is to identify the error and eliminate any sort of

defects which can cause variations in the overall quality of goods. In relation to the present
organization which is Kelloggs company, higher authority of the organization adopt this method
in order to reduce any sort of defects and errors arise at the time of manufacturing and
production process. This will assist them in manufacturing high quality goods without any kind
of errors which satisfy the needs and wants of customers in an efficient manner.
6. Identify what is effective and ineffective in the product’s operations processes and highlight
the relevance, pros, and cons of lean management.
Operation process refers to the development or manufacturing of final results with the
help of adopting inputs present in the form of human capital, raw materials, tools, techniques and
machinery. It has been identified that there are some effective as well as ineffective things
related to the operation process. While manufacturing goods and services there must be some
results which can be effective and ineffective. For every organization in today world to develop
effective products and services which will assist in satisfying the needs and wants of consumer.
Lean manufacturing is the process used to increase the effectiveness and efficiency of operation
process which leads towards the attainment of goals and objectives in an effective manner. Lean
manufacturing also known as lean production. This is a process used by management team in
order to reduce or minimise the waste material and extra labour while producing or
manufacturing goods and services. This as a result assist in improving the overall quality of
productivity. In simple terms, lean manufacturing refers to the procedure mainly adopted by
higher authorities in order to add value to the products. It is all about reducing all those elements
which do not create value and acts as barrier in order to provide high quality service to their
customers. In reference to Kelloggs company, managers adopt lean manufacturing where some
advantages and disadvantages of adopting lean manufacturing are going to be discussed as
follows:
Advantages:
Waste Minimization – One of the major benefit or advantage which is gained by the
management team of an organization while adopting lean manufacturing process is that it will
assist in minimizing wastage among the production process. Reason behind this is that
organisation sit on huge sums of waste and inventory which eliminates outdated inventory. In

reference to Kelloggs company, it has been concluded that managers adopt this process which
helps in reducing wastage and improving the quality of products as it adds value to the offerings.
Enhanced Customer Relationships – By reducing wastage and improving the quality of
products, it has been identified that the managers develop positive relationship with their
customers. This as a result assist them in order to retain their loyal and potential customers
for longer duration. In the context of Kelloggs company it has been said that by offering high
quality goods to the customers and satisfying their needs and wants in an effective manner then
the company will be able to build strong relationship with their customers.
Disadvantages:
Equipment Failure - Lean manufacturing is a process which has little room for defects and
errors. It has been said that equipment or labour failure leads to major inconsistencies among
lean as well as can leads the whole function fall behind. In relation to the present context, it has
been identified that Kelloggs company provide high quality equipment’s to their employees and
keep on eye about the functioning so that any sort of error can easily be detect and the overall
production process will not be hampered.
7.Provide recommendations for improvement siting practical examples for the management of
the supply chain of the product.
After examining all the factors related to supply chain management, it has been concluded
that there are some factors which need to be improved by the management of Kelloggs company.
There are various strategies and policies which need to be adopted by the higher authorities of a
business entity in order to improve the supply chain management process. It is very essential for
an organisation to supply their products and services to their potential customers within given
time period and in a good condition so that they can satisfy their requirements and demands by
consuming the products. For example, it is very essential for a business entity to adopt effective
distribution channel so that they can easily transfer their manufacturing products and services to
their customers within given time frame. Some of the recommendations which needs to be
implement by top management teams of an organisation are going to be discussed as follows:
 First and the foremost suggestion which needs to be considered by the higher authorities
is that they need to change or modify their distribution method. Upgrading distribution
way according to the changing environment helps the management team in order to keep
themselves in the competitive marketplace.

 Along with this, another recommendation is that higher authorities examine their
manufacturing process on a regular basis so they can significantly analyse that they have
sufficient amount of resources and products. This will help them in keeping themselves in
competition and can have effective amount of products and services which will assist
them in satisfying customers needs and wants.
 Furthermore, it is also very essential for the management team to adopt KPI so they can
examine their performance in an effective manner and can easily grab opportunities
available at the competitive environment. KPI refers to a procedure which requires an
organization to clearly examine their goals and objectives and then create performance
indicators which will aid them in order to track the overall progress towards the
attainment of organizational goals.
Conclusion
With the assistance of all the information stated above, it has been concluded that supply
chain management plays very important role in the growth and development of an organization.
It has been identified that supply chain acts as a bridge between customers and company which
leads towards the fulfilment of organisational goals and objectives of the company in an effective
manner. In addition to this, it is said that the process of manufacturing goods and services needs
to be very effective so that they can satisfy the needs and requirements of customers in an
efficient manner. Along with this, it is said that with the help of six sigma, lean management and
TQM process an organization can easily improve their overall performance and efficiency along
with this the quality of goods and services in an effective manner. There are various
communication methods used by companies to communicate with their different branches
located overseas, these methods are virtual team and web based showcasing.

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Online

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