Inbound logistics
Inbound logistics comprises buying, storing and distributing the materials that a company receives from its suppliers and uses to make the products and services it sells.
According to Svensson (2003), e-business can reduce the costs of materials, improve profitability and increase the overall supply chain’s performance by reducing its variability. And therefore Internet plays an important role in improving organizations inbound logistics just by allowing them to click from one website to another, search in different parts of the world and expand the number from which they can choose their suppliers. In the case of KFC, the company has different suppliers in many different countries: from the UK, Australia, Thailand, Brazil and so many other countries in Europe. By KFC using internet and online websites, it makes a profit of many online markets by evaluating the abilities of the suppliers and selecting them according to the quality of the product they offer, their costs and the profitability.
Kentucky Fried Chicken uses Just in time system to ensure that they get the right materials needed, at the right time and at the right place from their suppliers and therefore they can reduce their costs because they provide their suppliers with more detailed and timely information about their needs, which help the suppliers plan their production schedules in a better way to meet those needs. The JIJ system also controls inventory and quality of the chicken received from suppliers. When unloading the delivery truck, Just In Time system counts the items in case there is any shortage, checks if the chicken has been damaged on its way to the warehouse and then it checks the quality of chi...
... middle of paper ...
...ime and serve it faster. Years later, KFC franchise was opened in Utah in 1952. By the mid-1960s, KFC became one of the first fast food companies to expand on an international level in all of England, Mexico and Jamaica. In 1964, Sanders sold the entire KFC franchising operation and since that period, the chain has been sold three times: to Heublein in 1971, to R.J. Reynolds in 1982 and then to PepsiCo in 1986.
KFC’s original product is pressure fried chicken pieces, seasoned with Sanders’ recipe of 11 herbs and spices. The constituents of this recipe remains a secret that only few people know about and which they signed strict confidentiality contracts to keep it a secret. KFC also offers grilled and roasted chicken products, side dishes and desserts. In some places, they also offer beef and pork based products such as hamburgers, kebabs and ribs.
Porters 5 Forces:
When someone eats at Chick-fil-A, they are given a plastic table marker to place on their tables after they order, an employee will then deliver the food to them, eliminating long lines in the counter. They've also added service that would refill customer's beverages or deliver items like condiments and napkins.
Zanjirani F., Rezapour, S. & Kardar, L. (2011) Logistics operations and management concepts and models, 1st ed. London ; Elsevier.
The internet and World Wide Web are extremely well suited for conducting business electronically on a global basic, Web-based Electronic Commerce(EC) has introduced unprecedented opportunities for the marketing of products and services, accompanied by features, functionality and innovative methods to serve and support consumers. E-commerce has became a major catalyst of the economy and remains a vital growth engine for businesses today, It successful change the consumer behavior. Consumer purchases over the Internet continue to grow from year to year. The survey involving interviews with 42,238 people in 37 countries worldwide revealed that almost a quarter of internet users have shopped online and 15% plan to do so during the next six month. This represents an opportunity for FedEx as a provider of small-package delivery service.
The organization has had to ensure that it has retail stores in many countries globally and website options in more than 100 countries. The company further enhances access of online stores in more than 37 countries which is accessible all the time and people are able to access the services regardless of their location. Globalization further affects the organization in the sense of international market management which requires it to engage in strictly global decision making. The organization’s production networks have been geared to enhancing global competition (Lüsted, 2012) .The Company is further good when it comes to seizing the opportunities available in global market. For the organization to find efficient as well as cheap means of production, it has to bargain hard so as to allow its contractors to have low profits. This mostly is consequential to the suppliers cutting corners with the use of cheap
Based on these concerns, retailers in the international marketplace have their work cut out for them. But through proper education of consumers, and the ever-expanding growth of the infrastructure in many countries, the future seems to be leaning heavily towards using the Internet for many needs.
If and when Krispy Kreme decides to go global they will enter a whole new world of adaptation to different markets. They will no longer be able to offer their staple hot fresh plain glazed doughnuts and expect them to sell in every market. France for instance has built a world reputation on fresh baked goods; therefore their key branding technique would not be as effective in such a culture. However the hot fresh plain doughnuts strategy works very effectively across the United States with two exceptions. First is the growing number of obese Americans. With growing media attention turned towards sliming up American quick service restaurants, Krispy Kreme has come into the crosshairs of mainstream media. The other hindrance on Krispy Kreme's complete success is the all in one convenience attitude. Demonstrated by Wal-Marts success, giving
...tbound Logistics: The outbound logistics include the movement of the finished goods from the manufacture to the retail stores or a warehousing facility for later use.
Taking into consideration all KKD's publics, it is no shocker that Krispy Kreme continues to grow. For the first time, it successfully expanded nationally during the late 1990s in California (Saltzman). A main point of Krispy Kreme’s continued financial success has been their expansion into international markets.
KFC is one of the most popular fast-food restaurant chains by the Yum! Brands and fried chicken is what the company specializes. KFC was founded by Harland Sanders, which was later known as Colonel Sanders. Moreover, KFC was one of the first fast-food restaurant chains to expand internationally, including the opening outlets in Beijing, China, in November 1987 (KFC Website, 2013). The fact that KFC was the first Western fast food company in China makes it very challenging to satisfy the Chinese market. Trying to sell the same products or services is a typical approach to most foreign expansion for franchise businesses (Bell, 2011). However, one-size fits all approach is not what KFC chooses to apply for their company. According to Shelman, the writer of the case study regarding KFC’s Explosive Growth in China, key success for KFC China is to change the menu to suit Chinese tastes and style of eating (Starvish, 2011). “One of the lessons I take away from this case is that to ...
Outbound logistics: They are made up of centralized logistic centers to promote efficiency, global network, reduced emission of CO2 by 22% to ensure ecological sustainability and lastly to improve customer service.
The first innovative strategy of KFC China is localizing the menu. Trying to sell the same products or services is a typical approach to most foreign expansion for franchise businesses (Bell, 2011). However, one-size fits all approach is not what KFC chooses to implement for their company. According to Shelman, the writer of the case study regarding KFC’s Explosive Growth in China, key success for KFC China is to change the menu to suit Chinese tastes and style of eating. “One of the lessons I take away from this case is that to do China, you have to do China”, says Shelman. KFC localizes their offerings and adapts their existing products to appeal to the Chinese customers’ needs. The menu features Chinese local food like egg and vegetables soup. Examples of innovative products are the Dragon Twister (chicken roll of old Beijing) and the glass jelly milk tea (Zhou...
REB chicken dealer is getting supplies from QPLC wherein the said supplier is giving them the best quality of chickens that can make the customers satisfied.
Outbound Logistics includes the activities that store and distribute products to buyers (e.g. warehousing, delivery vehicle operations, order processing, etc.).
Key activities that fast food fried chicken restaurants include preparation of food for daily restaurant operation, equip staff with training and development for new recipes. Local marketing is required to promote launch of new and seasonal products (Lee, 2013) and (Popeyes Singapore, 2016).
In the new global economy, with the improved information technology, and the increased competition, a study by Levy (2007) shows that, many companies have attempted to recognize and implement lean production (LP) systems, established by Toyota, that involve goals such as just-in-time (JIT) delivery, low inventories, zero defects, flexible production in small batches and close practical cooperation with suppliers. Therefore, this paper will present how Kellogg’s has been able to manage its lean production in a very efficient way to create long term value products and competitive advantage.