KFC Supply Chain Management

La Han Group KFC Corporation (KFC), founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Kentucky, United States. KFC has been a brand and operating segment, termed a concept of Yum! Brands since 1997 when that company was spun off from PepsiCo as Tricon Global Restaurants Inc. KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of grilled and roasted chicken products, side dishes and desserts. Outside North America, KFC offers beef based products such as hamburgers or kebabs, pork based products such as ribs and other regional fare.

Supply Chain Management of KFC 1. Supplier Management KFC products are the main raw materials (Chicken, mashed potatoes, seasoning) determined by the head office supplier, usually raw materials (bread, beverage puree, vegetables, packaging, etc.) by the district level has confirmed that the suppliers. KFC a “star system (STAR SYSTEM)” a selection of alternative suppliers, which is specifically for a global assessment of supplier management system in China since 1996, full implementation of the supplier. This assessment system consists of five areas: quality, technical, financial, reliability, and communication. Every three to six months of regular assessment and evaluation throughout the year were, from KFC’s technical department and the purchasing department were assessed at the end of the composite score will determine the supplier of the volume of business in the next year in the share.

2. The supply of logistics model based on DRP system KFC supply process is: The restaurant will be reported to branch distribution center order demand, the latter after an order to the supplier, the supplier delivery to the distribution center, distribution center under the line delivery. This mode of operation of the logistics supply thought to follow DRP. DRP system includes two three input files and output plans, namely: the main demand planning, inventory files, supply the resource file; procurement plans, distribution plans.

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The main requirements planning Manager of the store orders the use of term-type orders filled, raw materials into frozen goods, dry goods, wet goods (short shelf life of bread, vegetables, etc.), the number of weekly orders are 1,1,2 – 4, ordering volume = demand – inventory. Demand is the purchase cycle, lead time and safety stock of, and, ordering the manager considering the historical sales data and promotional activities, or weather factors to calculate the turnover of an order cycle, and then converted according to the amount of thousands of round needed the number of raw materials. Demand plans to form form, set the table, including raw materials, estimated demand, not yet reached the volume of the end of the stock, order quantity, the amount of allocation of the purchase details, the form signed by the store manager sent to distribution centers .

Inventory File Every day before work, the staff of the provisions of the inventory of raw materials inventory and registration. This data is the order quantity is essential calculations, this data can also be used for costing the same day.

Supply resource file It is affected by supply-side arrival time. This time depends on the time of transmission and processing orders, supplier response time of the order, the efficiency of distribution centers.

Procurement Plan Distribution Center branch of the restaurant received orders for processing, such as the number of orders found abnormal fluctuations in a restaurant, the communication and confirm, the restaurant orders must be received 15 points in the end of the afternoon, after La Han Group

La Han Group ordering the distribution center personnel view existing inventory and shipment data are not revised order, the next day by email or fax sent to the supplier, which according to the quantity and date for production and transportation to distribution centers.

Distribution Planning According to the distribution centers indicated by the restaurant’s order number and the required raw material arrival time in the system, picking orders and shipments to generate summary tables, pickers, picking, packing, shipping transportation officer under the distribution plan summary arrangements, including: capacity approval, vehicle selection, delivery routes, transfer. The assessment team through the delivery vehicle loading efficiency, punctuality rate of fuel consumption and goods, safe rate were carried out.

3. Conclusion Through the above analysis we can see the following advantages SCM system of KFC: First, strong support for the normal operation of the enterprise and rapid expansion; the second is based on the various restaurants on the basis of accurate demand planning procurement strategy makes the company’s inventory costs are greatly reduced; third distribution center in the entire logistics system in a central location, status and role of information systems to be truly reflected; Fourth, demand forecasting, distribution planning and other aspects of quantitative and standardized management reflects the high level of enterprise management.

Members: Nguyễn Hoàng Tuấn Anh Phạm Thế Anh Nguyễn Hiếu Nam Trần Hữu Thanh Quân Lê Duy Vũ

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