JIT Inventory and Supply Chain Efficiency in Mozambique's KFC Sector

This project proposal investigates the impact of Just-in-Time (JIT) inventory on improving supply chain efficiency within KFC Mozambique's fast food sector. The study begins by introducing JIT as a strategy to reduce waste and costs by receiving goods only when needed. The background section highlights the importance of efficient supply chains, particularly in the fast-food industry, and the role of KFC within this context. The research problem focuses on the inefficiencies in supply chains, affecting production costs, customer demand, and profit margins. The aim is to determine the challenges of JIT inventory, examine its impact on supply chain efficiency, and recommend interventions to improve it. The study will employ a mixed-methods approach, including both qualitative and quantitative data collection, to explore the research questions. The significance of the study lies in identifying solutions to supply chain inefficiencies and the practical and academic implications of JIT implementation. The proposal outlines the research design, methodology, data collection instruments, and ethical considerations, concluding with a proposed timetable and references.

An investigation into the impact of
Just-in-time inventory on improving
supply chain efficiency: A case of
Mozambique's Fast Food Sector
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Contents
1. Introduction..................................................................................................................................3
2. Background..................................................................................................................................4
3. Research Problem........................................................................................................................5
4. Aim of the study...........................................................................................................................6
5. Research Objectives.....................................................................................................................6
6. Research Questions......................................................................................................................7
7. Significance of the study..............................................................................................................7
8. Literature review..........................................................................................................................9
What are the challenges of the just in time inventory for KFC within Mozambique's Fast Food
Sector?.........................................................................................................................................9
What is the impact of the just in time inventory on supply chain efficiency?...........................11
What is the intervention that can improve just-in-time inventory and supply chain efficiency of
KFC within Mozambique's Fast Food Sector?..........................................................................13
9. Research design and methodology.............................................................................................15
9.1 Research Methodology........................................................................................................16
9.2 Sampling strategy................................................................................................................16
9.3 Data collection instruments:................................................................................................17
9.4 Data analysis........................................................................................................................19
9.5 Pilot study............................................................................................................................19
10. Ethical Considerations.............................................................................................................20
11. Chapter Organisations..............................................................................................................20
12. Proposed Timetable.................................................................................................................21
REFERENCES..............................................................................................................................24
Appendix........................................................................................................................................27
Questionnaire.............................................................................................................................27
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1. Introduction
Just-in-time inventory refers as an effective strategy of decreasing waste and increasing
efficiency by receiving goods only as they are required within production process, thereby
decreasing inventory costs. In addition, JIT is an effective tool of inventory management and
type of lean methodology that is design to enhance efficiency, cut costs and reduce wastage by
receiving products only as they are required (Banerjee and Mishra, 2017). Therefore, just-in-time
inventory is an essential manufacturing process that helps an organisation in fulfilment of
customer’s need without wasting any time and cost. Just-in-time approach has the capacity or
facility, when sufficiently applied to the company, to enhance the competitiveness of business in
the marketplace extensively by reducing wastes and improving production efficiency as well as
the product quality. One of the main objectives of JIT inventory in the organisation is to reduce
any type of wastage such as inventory waste, waste of time, waste from product defects,
transportation waste, waste from over production and processing waste. These are main wastage
that has negative impact over business performance of company.
This dissertation proposal is based on Mozambique's Fast Food Sector that supplies catering
services or facilities on the fast turnover basis. This sector comprises chicken, hamburger, pizza
and many other food outlets, pastry and ice-cream shops, coffee, ethnic food shops as well as
home delivery facilities for some of these. For this, KFC is a given company that works under
Mozambique's fast food sector. KFC is an American fast food restaurant chain that is mainly
specialise in fried chicken. It was founded by Harland Sanders in 1952 and headquartered in
Louisville, Kentucky. Company use Just-in-time inventory that has both positive and negative
effects on supply chain efficiency (De Steur and et. al., 2016). In positive way, JIT inventory
helps KFC by lowering inventory holding cost, improving cash flow and eliminating risk of
overproduction. This will also helps in improving higher customer satisfaction due to continuous
communication with the potential and target customers. In negative manner, just-in-time
inventory creates issues in order fulfilment, transportation costs would be comparatively high,
changes are quit high etc. Therefore JIT inventory has effect on supply chain efficiency of
company. Main purpose of this research is to identify the importance of just-in-time inventory in
improving supply chain efficiency within Mozambique's Fast Food Sector.
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2. Background
Supply chain network of an organisation include the activities related to ascertainment of
raw materials from suppliers and delivering of the final product to end consumers for their
consumption. Its efficiency has large number of benefits for an organisation like customer
satisfaction, meeting market demands and no blockage of cost in inventory, less production cost
etc. In relation of to the organisations of fast food sector, its management is important because
business function requires daily need of fresh raw materials. A supply chain introduces as an
effective network between an organisation and its suppliers in order to produce as well as
distribute a particular goods to the final customers (Filippini and Forza, 2016). This network
includes various numbers of activities, entities, people, information, resources etc. There are
some examples of supply chain activities that will be require by KFC for improving efficiency
and effectiveness. These examples are faming, refining, design, producing, manufacturing,
packaging and transportation. All these are effective for an organisation in improvement of
efficiency in its supply chain. Just-In-Time is an extremely easy idea but one that is important in
contemporary supply chain management. Just-in-time sets out to decrease costs by decreasing
the amount of products and materials an organisation holds in stock. Just-in-time involves,
producing as well as delivering finished goods to the end users. Therefore, Just-in-time inventory
impacts in improving of supply chain efficiency.
Kentucky Fried Chicken or KFC is the second one biggest global fast-food chain subsequent
to McDonald’s. This American fast food chain, specialising in fried hen, opened its first
franchise in 1952 at Utah, and due to the fact that then has opened over 21,000 franchises in 123
nations internationally (History of KFC Corporation, 2020). In a marketplace monopolised by
way of hamburgers because the most effective rapid meals of desire, Colonel Harland Sanders
changed into an entrepreneur who delivered innovation and variety to the quick grocery store
with fried chicken, and branding himself as ‘Colonel Sanders’, he speedy rose to emerge as one
of the most acknowledged discern in American history.
Supply chain management is main aspects for an organisation in ensuring that a business
runs successfully and smoothly. Unless each and every face of the supply chain is more strong
and functioning or performing at its optimal stage of performance a manufacturing organisation
cannot work at its complete potential. As of boosting customer satisfaction level to reducing
operating costs, efficient supply chain management system goes an extended way in maximising
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the bottom line and customer base also. But it is also essential to remain the correct balance
between entire components, for example: KFC in the United Kingdom, the emphasis on reducing
costs broken up within disrupting the punctual time of delivery the chicken, causing loss of
profits as well as perception of customers towards brand (Ghadge and et. al., 2018).
3. Research Problem
The main problem researched here is related to the impact of supply chain inefficiency over
the functioning of daily operations within fast food businesses. The number of aspects or
problems focused includes impact upon cost of production, ability to meet customer demand and
preferences, profit margins and working capital requirements. For KFC to remain competitive
within the international marketplace, incessant supply chain enhancement and supply chain
efficiency are needed. Changing a system of supply chain management takes maximum time,
financial investment and human resources also. It is a main issue that are faced by most of the
organisation in their business operations due to poor supply chain management system. If
organisations not implement supply chain system properly, there will be service redundancy,
wasted labour and missed deadlines that output in significant costs (Godinho Filho, Ganga and
Gunasekaran, 2016). Along with this, integrating a new management system into a supply chain
working is complex as well as repeatedly needs restructuring or team-member training. Supply
chain management process must include detailed planning, effective communication, or it could
output in expensively mistakes and too much employee turnover. Therefore, ineffective or poor
supply chain management has negative impact which creates biggest issue for an organisation in
improvement of its business operations.
An organisation should be hyper emphasised on decreasing wastage to make cost savings as
well as decrease risk in their supply chain. On the other hand, many enterprises approach this
activity from a perspective that doesn’t make sustainable outputs and may even create
unintended consequences or costs. As an organisation develops organically and pivots some
strategy in explore of profit centres, its supply chain efficiency will often reflect this. While this
type of strategy is essential to the growth and success of KFC, it locks inefficiencies and
ineffectiveness into the supply chain as it favours speed on efficiency. On the other hand, as an
organisation stabilizes and scales, these inefficiencies turn out to be significant disadvantages, as
well as it takes more than incremental transform to remove them. Therefore supply chain
inefficiency is a main issue that have negative impact over business growth and success of
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company. Along with this, there is requirement for improving supply chain efficiency. For this,
there are different methods that will be used by KFC for enhancing efficiency of its supply chain.
These ways are imaging a new supply chain, partner with current suppliers, collaborate with
internal operations, and drive large scale efficiency with suppliers. Therefore all these are more
effective and essential ways for improving supply chain efficiency. This turn to help KFC by
increasing its sales and maximising number of customers within lesser time period (Jardini, El
Kyal and Amri, 2016).
4. Aim of the study
Research aim is important and essential part of the research because it will support
researcher in conducting of full dissertation systematically. Thos part of the dissertation express
the aspiration and intention of the research project (Lii and Kuo, 2016). Research aim
summarises in a single sentence that will be clear and understandable. Along with this, aim of the
research helps researcher in doing of research effectively. There are main aim of this research
which are shown as below:
Main aim of this research is “An investigation into the impact of Just-in-time inventory on
improving supply chain efficiency of an organisation: A case of KFC within Mozambique's Fast
Food Sector.
5. Research Objectives
Research objectives are considering main part of the dissertation because it will help in
completion of full project effectively. Research objectives are based on two variables which are
dependent and independent. Both variables are important in completion of research
systematically and effectively (Lorenc and Szkoda, 2015). According to the research aim or title,
improvement of supply chain efficiency is a dependent variable that is completely depends on
Just-in-time inventory. Therefore, both variables are essential for conducting this research.
According to the dependent and independent variables, some valuable objectives will be
prepared. These objectives are shown as below:
 To determine the challenges of the just in time inventory in Mozambique's Fast Food Sector.
 To examine the impact of the just in time inventory on supply chain efficiency.
 To recommend an intervention that can improve just-in-time inventory and supply chain
efficiency in Mozambique's Fast Food Sector.
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6. Research Questions
Research questions are another important section of dissertation because it will support
researcher in fulfilment of research gap and attainment of research aim and objectives. Research
question are divided into two sections which are main research question and sub-questions of
research. Both types of questions are related with research title and aim (Marodin and et. al.,
2019). There are some essential questions that will be require for accomplishing research gap
and collecting secondary data for literature review. These research questions are:
Research question
 What are the impacts of Just-in-time inventory on improving supply chain efficiency of
KFC within Mozambique's Fast Food Sector?
Sub-questions of research
 What are the challenges of the just in time inventory for KFC within Mozambique's Fast
Food Sector?
 What is the impact of the just in time inventory on supply chain efficiency?
 What is the intervention that can improve just-in-time inventory and supply chain efficiency
of KFC within Mozambique's Fast Food Sector?
7. Significance of the study
The importance of this study is high as aid in identification of the solution of supply chain
inefficiency within fast food businesses. Here, use of JIT is presented over the purpose of
improving supply chain efficiency and getting of rid of the problems mentioned above. JIT is the
inventory control technique that helps in ordering of the inventories of exact amount which is
required to meet the further market or consumer demands. This help in saving additional cost
blockage, effective management of working capital, better functioning of routine activities etc.
Overall, this helps to reduce the loss of money and raw material wastage in fast food business
due to the nature perishability (Meybodi, 2015).
This research is important at practical as well as academic level. This research helps in
development of knowledge about the impact of just-in-time inventory over business operations.
This research will also support in identifying of importance of supply chain efficiency for
effective functioning and operations of company. At academic level, this research support
students by enhancing their knowledge or understanding about the Just-in-time inventory and its
negative and positive effects over improvement of supply chain efficiency. At personal level, this
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research support researcher by enhancing their research skills such as time management,
literature review, selection of best methods of data collection etc. These are main skills that will
be essential for researcher in completion of full project in successfully and effectively. Apart
from this, if this research paper is publish will support organisations, societies and an individual
by improving their knowledge criteria regarding the challenges of the just in time inventory for
within Mozambique's Fast Food Sector. This research will also help them in identification of best
intervention for improving just-in-time inventory and supply chain efficiency of company
(Othman and et. al., 2016).
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8. Literature review
Literature refers to the essential process of collecting secondary data about the field of study.
In order to gather secondary data for literature review, there is requirement of using different
number of sources. These sources are books, articles, magazines, publication research, journals
and many other that are relevant to the topic. All these are considering more effective and
valuable sources for researcher because this will support them in collecting and gathering of
detailed and in-depth information. Literature review is a main part of research because without
this section researcher cannot collect secondary data and not critic them effectively. There are
different purposes of literature review but one of the main purposes is identification of research
gaps within previous study. Within an investigation, main research gap is the impact of Just-in-
time inventory on improving supply chain efficiency of an organisation. It is a main gap because
in previous study there is information about the impact of just-in-time inventory but there is lack
of data regarding the JIT inventory and its impact on enhancing supply chain efficiency of
company (Phogat and Gupta, 2017). Therefore, it is a main gap and in order to complete this gap,
researcher will make sub-questions of research. These questions will be useful and valuable for
researcher in attainment of research gap and achievement of research aim and objectives within
limited time period. Sub-questions of the research will be explained as below in detailed and
systematic manner:
What are the challenges of the just in time inventory for KFC within Mozambique's Fast Food
Sector?
According to the Bailey (2018), Just-in-time inventory refers to the process that is
designed by an organisation with purpose to cut business investment within inventory. In JIT
inventory systems, organisations order the exposed minimum amount of stock to obtain via until
the after that delivery date. KFC following this system on a biweekly delivery agenda would
only order sufficient food to previous an average of 4 days' worth of enterprise. There are many
challenges that restrict the effective working of JIT within fast food industry. These include:
Changing nature of societal trends: The concept of JIT is based upon the ordering of
quantity as per the actual requirement with an organisation. This help in future to save cost
through reduction of wastages, their optimum utilisation and holding the inventory of amount
which will be required in actual. There are many challenges in case of implementing the concept
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of JIT in the organisations dealing fast food business like KFC. The main reason behind the
challenge is about frequent changes in societal trends. In this regard, organisation must focus
over ordering of the different quantities of raw material according to trend. This makes the
situation more difficult regarding ascertaining the actual amount of raw materials requires
meeting demand (Prajogo, Oke and Olhager, 2016).
Everyday different preferences of consumer: The everyday different preferences also
impact the JIT implementation in KFC. The change in preferences impact the ability to know
about cycle of ordering raw materials. Also, the nature of the raw materials is perishable that
become wastage after the storage for more period of time. This creates the difficulty because not
possible to get the actual knowledge about the demand of consumers. These will resultant into
ordering of excessive raw materials, high wastage and blockage of funds. The end impact
ascertained in form failure regarding effective implementation of JIT concept (Qi and et. al.,
2017).
Deployment high use of knowledge and skills: The JIT is not easy and requires high
knowledge and skills for effective implementation. This will be done only in the case when
separate team will be present for the handling for inventory and application of JIT concept. The
business model of KFC is Franchise where difficult to hold separate team in all number of stores
at worldwide level. Hiring of professionals will be costlier for the organisation that has direct
impact over their profit margin. This also resultant in to increase of cost of product and high
prices of product that impact as less demand in market (Sharma and Modgil, 2015).
Need for higher IT investment: JIT system are more complex because these are virtually
not possible to utilise without a computer and any dedicated programs. KFC will require
inventory tracking, sales predicting, order creating and a host of any other programs in order to
create this system work in proper manner. It means a maximum amount of investment in
software and hardware plus training schedule for administration and workers. This will be
additional cost of labour, additional supervisory duties, and maximum time period will be
required for inputting data. Once entire systems are installed as well as employees have been
trained, KFC within KFC within Mozambique's Fast Food Sector now relies over the system of
computer to work flawlessly. For this, company will make strong relationship with IT
professional that has knowledge about the hardware. As this will help them in overcoming issue
of higher IT investment (Ugarte, Golden and Dooley, 2016).
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Therefore, all these are main challenge of Just-in-time inventory for an organisation.
There are other main challenges of JIT such as forecasting of the produced finished good’s
demand is difficult. KFC not only require forecasting the demand of costumer but also have to
organize suppliers of raw materials that are based on their approximate demand. This could
develop issue if a enormous change in demand happens. Along with this, KFC in Mozambique's
Fast Food Sector require reliable suppliers in order to sustain just-in-time approach or system.
These suppliers should meet up the time limits to supply raw materials which are most essential
important to fulfil the orders on time (Kovács and Kot, 2017). In addition, the products given by
the suppliers should also rally the quality needs as if the goods are out of order or faulty, it might
lead to delays within production and a maximise in failures of raw material as well as decreased
revenues. It becomes not easy for KFC that take on JIT tool to keep the needed number of
workforce required. At the same time as the workers are only needed to work or perform activity
when an order to be found by the clients, company regularly have to workers both temporary and
permanent labour based on their requirements and demand of market. In order to effectuate JIT
competently, KFC requires a very strong and effective supply chain. The basis being, if any of
the connection within supply chain i.e. manufacture, labour, suppliers and so on breaks losing, it
can disrupt the entire production line and might lead to customer’ order delays.
What is the impact of the just in time inventory on supply chain efficiency?
As per the view point of Barlow (2015), JIT refers to an inventory management philosophy
or system that aim is to decrease wattage and redundant stock by delivering materials,
components and products just when an enterprise requires them. JIT inventory has positive
impact over supply chain efficiency. Just-in-time produce advantages for KFC in four main areas
which are improved inventory turns, decreased warehouse space, better customer service, and
enhanced response time. Along with this, there are other benefits of JIT inventory for KFC that
will be essential in improving of its supply chain efficiency. These benefits are reduce
distribution costs, enhanced quality of suppliers products, reduction in manufacturing cycle
times, productivity improvement, greater control between different production stages, diminished
raw material, finished goods inventory and work in progress, dramatically enhanced inventory
turnover rates, reduced number of transportation carriers and suppliers. Therefore, all these are
considering positive impact of JIT inventory over supply chain efficiency. This will also support
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an organisation in increment of sales and market share easily. Along with this there are some
positive impacts of JIT over supply chain as presented below;
Efficient amount of raw material: The concept of JIT is relied upon the ordering of right
amount of quantity as per the market demand, trends and organisational production capacity.
This includes the measuring of ordering cycle and market analysis for the purpose of ascertaining
effective amount of raw materials that resultant into continuous business functions. The benefit
of this will be ascertained by KFC in their supply chain by attaining the storage of efficient
amount of raw materials which will be sufficient to meet market needs. This has further
contribution towards the optimum utilisation as they know how much marital they and how this
will have needed to be consume (ONYANGO, 2017).
No blockage of cost: The ordering of large amount of inventory resultant into blockage of
cost. The negative impact this will be ascertained in the manner that not able to do the routine
activities properly as did not have proper flow of liquid cash. Another negative impact will be
ascertained in the form of loss of money due to spoilage of raw materials. The concept of JIT is
based upon the ordering of raw materials which will be actually required within an organisation
for the purpose of carrying business activities. This will provide the benefit in form not blockage
of extra amount in the purchase of inventories. This can be further used for the purpose of
improving of speed of routine activities and quality of services. The positive impact of this will
be ascertained upon the supply chain along with overall business (ACHARYA, 2016).
No waste of material due to the nature of perishability: The nature of raw materials in the
food sector is perishable. It is not possible to store for longer period of time. The ordering of
excessive amount of raw materials always resultant into the wastage and loss of money. The
concept of JIT is based upon this point than focus over the market need and organisational
requirement before the ordering of the raw materials. This will provide the benefit in form of
holding the actual amount of materials that will be consumed properly within the specified
period of time without any wastage and spoilage. This will provide the opportunity to improve
production capacity along quality in offerings that has positive impact over business operational
capacity (Richards, 2017).
Therefore, Just-in-time manufacturing system or philosophy has long been an essential part of
the efficiency of supply chain management. It plays an important and significant role within
enhancing the supply chain process of KFC and is very essential to be looked on in a very careful
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