Management

Logistics and supply chain management: A case study on KFC

Introduction

Supply chain management is mainly the Organisation

al operational activities where the suppliers, manufacturers, distributors and the customers are linked together for transaction of good and services (Christopher, 2016). Through supply chain management, it is posisbel to maintain the flow of the organisational products, manage supply and demand of the goods, source raw material for successful production, manage warehouse and inventory, track order and distribute as well as deliver the products to the customers (Govindan, Soleimani and Kannan, 2015). The aim of the study is to understand the strategic planning to develop effective supply chain for the company KFC so that it is easy to maintain logistics operational activities as well as track orders and deliver quality products to the right customers within proper time. In the present case, KFC is suffering a problem of maintaining the stock of chicken which is the main raw material of the company’s products and in this context, the reputation of the reputed organisation KFC is hampered as they fail to deliver the products to the customers at right time (BBC News, 2018a). In this case, it is necessary to manage logistics operation of the business with the help of supply chain management which ensure that the customers receive the quality products at the right time and the right place with the right quality and price. Through this study, it is possible to discuss the logistics variable as well as the importance of e-commerce and the e-business which will provide a scope to the company KFC to handle the issue of delay in delivering their quality products to the customers.

Evaluating the significance of KFC’s Logistics variables in avoiding such delays in the future and achieving customer satisfaction

Supply chain management with the strategic planning of logistics management is effective to maintain the operational activities of the company, where it is easy to manage the demand and supply of the organisational products to the right customers within right time (Rushton, Croucher and Baker, 2014). Demand management as well as product life cycle management and raw managerial management, inventory control, procurement and logistics management are the major advantages of managing effective supply chain. In order to mitigate the issue of KFC it is necessary to improve the logistics and supply chain management of the organisation so that it is posisbel to satisfy the customers by delivering the quality products ta right time according to the needs and preferences of the consumers in the market (BBC News, 2018b). The supply chain strategy of the company is effective, but the suppliers must be careful about the availability of the raw materials and products and inventory control process so that they can distribute the final products of the company successfully at the right place.

In this context, the variables of logistics operations are beneficial which will help the company KFC to mitigate the existing issue and establish the brand by resolving this controversy. There are several variables in logistics such as transportations, storage, warehousing, material handling, security and order processing and communication through which it is possible for the company KFC to maintain the logistics operations and resolve the controversy. First of all, transportation needs to be improved for successful distribution of the raw materials, inventory control and distributing the final products of KFC. On the other hand, the company focuses on cold storage to manage the food products which is the main factor under supply chain management of KFC where the raw martials need to be kept through old storage facility to maintain safety and freshness of the products. Cold storage refers to maintain the procurement, warehousing, transportation and retailing of the food products under controlled temperature so that the customers can get the quality products from the company KFC. Suitable accommodation of warehousing as well as packaging style will help the company to manage the logistics operation and supply chain of the company which helps to resolve the controversy where the raw material chicken can be kept safely (Schönsleben, 2016). Moreover, material handling is also important where through transportation and managing warehouse as well as inventory control, it is necessary to manage the raw materials of the company where the controversy like lack of availability of chicken can be resolved. Order processing through tracking he orders, managing customers though communication as well as both way interaction among the suppliers, distributors and the manufactures are helpful for the company to manage their operational activities.

The company in this regard needs to focus on demand forecasting operational planning and the demand management through which it is posisbel to maintain the stock of the product and offer the customers successfully (Jacobs, Chase and Lummus, 2014). In this regard, the logistic operations of KFC include the suppliers, producers, wholesalers, retailers and the customers where there needs proper cooperation among the partners of the company by ensuring the products quality, financial improvement, technical upgradation, reliability and communication through which the partners can work as a team and run the operational activities of KFC. The company KFC mainly follow the Distribution Resource Planning (DRP) system which helps to manage the orders from the customers within the supply chain where it enables to have effective inventory control and develop proper planning for successful distribution. The system is effective for the company to mitigate the existing issue where the business can resolve the controversy and will satisfy the customers in near future (KFC, 2018).

Analysing how innovations in e-business and e-commerce, can help KFC avoid such delays in the future, within its supply chain management

E-commerce and e-business in the recent era of globalisation are the best practice for all the organisations to run their operational activities strategically where e-commerce is the exchange or buying and selling of the organisational products and services through electronics means (Grant, Wong and Trautrims, 2017). On the other hand, e-business is the use of information and communication in the business activities are helpful for the organisation KFC to improve their business performance through enhancing business connectivity and lowering cost. E-business and e-commerce are hereby beneficial for the company KFC to promote the products in the market and enhance the transaction of the products and services across the globe. Gaining competitive advantage and generating new business channels can also be posisbel through e-business. In this regard, the company needs to implement the Information and Communication Technology (ICT) for enhancing the internal and external communication. Apart from that, through e-commerce facility, the company can promote the quality products of the company and attract more audiences in the market across the globe. In addition to these, through e-business, the company can also mitigate the current issue of lack of availability of raw materials where the company can connect and improve engagement with the suppliers, distributors and the raw materials suppliers which helps to enhance communication and build strong corporate relationship with them.

Additionally, the e-commerce facility helps the company KFC to retain their customers through promotion across the globe where they can deliver the quality products to the right customers by tracking the customer’s orders successfully through e-commerce. Both way communication can be enhanced where the customers can interact with the organisational representative directly through e-commerce where they can buy the quality products as per their preferences (Brandenburg et al., 2014). On the other hand, the e-business facilities are helpful to manage the warehouse, track the demand of the customers across the international markets, manage the suppliers through smartphone application and distribute the products to the right place at right time. Through e-commerce facility, the company can focus on B2B process for directly selling their products to the customers and it also helps to improve direct interaction and strengthen the customers’ base for their quality products and efficient services of KFC. Hereby, both the e-commerce and e-business facilities are helpful to manage the customers and create values for them by delivering quality products to the right place at right time. This further helps to improve the profitability of the company and it also provides a scope to satisfy the customers by delivering the quality organisational products as per tehri expectations.

The company needs to develop e-commerce technology through implementing Electronic Data Interchange (EDI) for exchanging information, maintaining electronics documents and manage the customers through updated technology. Moreover, web forms and the application for the company are helpful which provides a scope to the customers to manage their demand through seeing the billing, payment account, distributing the products, shipping and delivery of the products. it is helpful to manage the customers through tracking the customer’s demand. M-commerce is another efficient technique through which the company KFC can develop a mobile application for the customers to manage their account, payment process and delivery of the products as well as the mobile application can also help the suppliers to manage the customers and track the customer’s demand for successful delivery of the organisational products. The company also needs to develop the Electronic Funds Transfer (EFT) so that the funds transfer process can be handled smoothly, and the customers can make effective payment through fund transfer.

KFC aims to improve its reliability within its supply chain and logistics, Suggesting and analyse best practices, which can help KFC to achieve its aim

The company KFC needs to improve their business operational activities to manage the supply chain and the logistics operations so that the current issue can be mitigated and the organisational can satisfy the customers successfully. Best practice in this regard is helpful for developing effective strategic planning for successful management of supply chain and logistics operations so that KFC can mitigate the issue of delay of Chicken in the market. This is also effective to improve the business operational activities in near future and this technological upgradation are beneficial for the company KFC to mitigate the existing issue and stablish the brand efficiently. Through innovation and creativity, it is posisbel for the company KFC to maximise their operational activities and manage the customers successfully. The company needs to manage the relationship with the suppliers to make the best practice through regular interaction, creating values for the suppliers by providing high return on investment and building strong corporate relationship with them. Maximising values for the suppliers by deliver incentives as well as other benefits in the organisation are helpful to build strong relationship with the suppliers and the distributors which in turn helps to strengthen their supply chain and logistics in future. The three best practices for the company KFC are such as developing logistics technology, developing efficient supply chain and establishing relationship with the key suppliers through which it is possible to mitigate the issue of the company.

Implementation of GRP system is effective to manage the suppliers and the distributors where they can track the demand of the customers across different markets, additionally the company also needs to implement Enterprise Resource Planning (ERP) system in the organisation for managing logistics and supply chain which is beneficial for KFC to mitigate the current issue and manage the raw materials and supply chain for successful distribution of the final products as per the customer’s demand. Through ERP, it is possible for KFC to collect, store and manage as well as interpret the data including products planning, manufacturing, purchasing raw materials and distribution and delivery of the products. The above-mentioned strategic recommendations and best practices will be beneficial for the company KFC to resolve the controversies and strengthen their customer’s base through satisfying them by meeting their expectations through delivering quality organisational products. developing aligned strategy of managing the suppliers and distributors through mobile application is one of great innovation of KFC that would help the company to mitigating the issue of delaying the supply of chicken in the market. The suppliers of raw material need to be managed well as well as warehouse management and packaging style of raw material chicken would also be beneficial for keeping storage facilities effective which in turn help to improve the business of KFC. The above-mentioned logistics technology and managing the suppliers are the best practice for the company KFC to mitigate the existing issue of delaying of chicken in the market and expand the business well by delivering their quality product through the suppliers and distributors at right place according to the market demand.

Conclusion

Through developing effective strategic planning of the supply chain management and logistics operation management, it is possible for the organisation KFC to manage their customers and improve tehri satisfaction by delivering quality products and efficient services to the customers which can meet their expectations. The e-commerce and e-business are the best strategic planning through which it is posisbel to ensure technological upgradation where the company KFC can manage the customers, suppliers, distributors and manufacturers through electronic media which helps the company to track the demand of the customers, manage the customers and distribute the final products of the company KFC at right place within right time. Hereby, the company needs to focus on best practice by managing their supply chin through implantation of ERP and ICT as well as building strong relationship with the suppliers and the distributors who can manage the transaction of raw material of the company, maintain inventory and warehouse as well as deliver the final products to the right customers.

Reference List