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Logistics and Supply Chain Management- KFC

University: University of Birmingham

  • Unit No: 3
  • Level: Post Graduate/University
  • Pages: 9 / Words 2216
  • Paper Type: Assignment
  • Course Code: MBALN670
  • Downloads: 37
Question :

Questions- This assessment will cover the following questions:

  • Discuss the objective of the Supply Chain and explain the impact of Supply Chain decisions on the success in the context of KFC.
  • KFC is an American based fast food chain. Explain innovation in online business models and communications approaches.
  • Explore and analyse Best Practice in Logistics and Supply Chain Management.
Answer :
Organization Selected : KFC

INTRODUCTION

Logistics and supply chain management is an important tool for the company. It helps the organization deliver its products to its customers. In this report chosen company is KFC. It is an American fast-food restaurant chain that is famous for its fried chicken. The aim of organisation is to improve the logistics and supply chain management so that it can satisfy its consumers. It covers the following topics such as follows: evaluate and significance of KFC's Logistic variables, analyze the innovations in e-business and e-commerce, and aim to improve the reliability within the supply chain and logistics.

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TASK 1

1. Introduce KFC from a Logistics and Supply Chain Perspective

Logistic and supply chain is a system which helps the company to serves its product to the end users so consumers can use it. KFC is known for its chicken and people like its products. The supply chain and logistic work was managed by the DHL in United Kingdom. But unfortunately it is not able to supply the chicken and its products on time so company is not able to prepare its food products on time and customers were not satisfied with this. DHL is working to get KFC outlets in the UK but back up and running after delivery problems limited its supply and company have to close its some restaurants in the country (Beske and Seuring, 2014).

2. Briefly Discuss Logistics Management and Logistics Variables

Logistic management is the supply chain management component which helps the company to fulfil the consumers needs and demand. It involves effective planning, control and implementation of effective movements and storage of related information, services and goods from origin to destination. Logistic variables are those variables which can affect the supply chain management of company. These variables are like: routing, sales forecast,administration of suppliers, frequency of monitoring the level of services etc. These variable should be effectively managed by the organisations so that its logistic and supply chain management can be improved. KFC does not have effective logistic management and its also influence from logistic variables so it does not able to deliver its products on time to consumers.

3. Asses the importance of KFC's logistics variables in avoiding such delays in the future

Logistic variable are important for the company because it helps to maintains the effective supply chain management of the organisation. There are many logistic variables in KFC like: routing, it means DHL is not able the find the appropriate route through which it can deliver the products in minimum time and also save the transportation cost. Administration of suppliers means suppliers of company is not able to supply the products on time so KFC does not able to serves its products on time to its consumers. If these logistic variable can be managed properly than chances of delays in the future can be minimise and organisation will able to satisfy its customers by providing the products on time as per their demand (Bichou, 2015).

4. Assess how these Logistics Variables can improve Customer Satisfaction at KFC

If a company want to satisfy its consumers than it is important for it to manage its logistic variable effectively so that organisation can maintain proper logistic and supply chain. If the variables of logistic are effectively managed than it can improve the consumer satisfaction. If DHL able to find short route for delivery than it can beneficial for the KFC because it can able to serves its products on time and as per the demand of consumers. It helps to make the person happy. Suppliers who supply the bread and chicken to the organisation if they provide these things on time and as per the required quantity than company will able to meet to demand of consumers by providing the products as per the needs and wants. It will help the KFC to improve customers satisfaction.

TASK 2

1. Define e-business and e-commerce

E- business:

Electronic business describes the practice of selling goods and services and carrying the other activities of business by computers or with the help of internet. It helps in selling , marketing, servicing, buying and with the help of internet an organisation can manage its suppliers, competitors, agents and consumers of the company (E-business. 2017). Almost all organisations are using it so that they can work smoothly and fast. It helps the companies to increase its reach and grab the more market share. KFC can use e-business in its organisation so that it can effectively manage its operations in the business (Chardine-Baumann and Botta-Genoulaz, 2014).

E- commerce:

E-commerce is a type of business model which is used by the organisations to conduct its business over an electric network like Internet. It is mainly focuses on four market segments like: business to consumer, business to business, consumer to business and consumer to consumer. Electronic commerce helps the companies to establish a market presence so that it can able to provides effective and cheaper distribution chain for its services and products. KFC is also using it in its organisation for effective management and supply so that it can meet the demand of their consumers (Cosimato and Troisi, 2015).

2. E-business/ commerce at KFC

Today almost all companies are using web sites whether it is dealing in the business of retailing, services, clothing etc. E- business at KFC are as follow: It is an American fast food restaurant and its known for its chicken products. It gives its franchises almost worldwide, it is using website which help it to communicate with the consumers (Wang and Cullinane, 2015). This site contains all needed information like menu with its prices. It is using mobile application which help the company to sell its product and consumer can place its order through the app. As per the demand of persons it deliver the food to its customers. It helps to increase the sales of it and consumers are happy with it because they does not have to waste their time to visit the restaurants and know about the all products with its prices. E-commerce at KFC are as follows: It sales it products online which is a part of B2C, its helps the company to increase its sales as well revenue. Customer to customer sales like yard sale adds on Grieg's list. Business to business includes to sales the products of organisation to the retail stores which is not done by the KFC because it has its own stores and it does not supply its products to other retail stores.

3. Innovation in e-business and e-commerce at KFC, and how these innovations can help KFC avoid such delays/issues in the future

Innovation is the need of every business if it want to get success and it helps the company to survive for a long run in the market. Environment is dynamic and it is difficult the assume and predict the future so it is essential for the organisation to apply some innovation so that it can make different itself from others. Innovations helps in better productivity and makes the work smoothly. Innovation means to bring something new or unique which is not available in the market. It helps to get competitive advantage for the company (Hugos, 2018). KFC can bring innovations in e- business and e- commerce which are as follows: It can makes innovation in its e-commerce site which is “finger- lickin”. It is basically for the consumers who want to enjoy its holiday and its brings holiday spirit in the customers. It want to attract procrastinating holiday shoppers who can quickly order gifts and can get more time to enjoy food of company which includes $ 20 fill up meal. Organisation should provide more items in the menu and this facility should also given to its regular customers on the basis of lucky draw coupons or seasonal basis. It can makes innovation in its e-commerce site by adding these facilities and features which can attract the consumers. It can make innovation in the e-commerce which are such as follows: KFC is not dealing with the retail stores but it should deal with the various retail stores and provide its

products to them (Mangan and Lalwani, 2016). It can help to increase the sales of organisation and it will be able to capture more market share. So it can apply these types of innovation so that it can run for a long time and earn more profit.

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TASK 3

1. Define "Best Practices"

Best practices are describes as the rules and set of guidelines which is set by the companies. It involve some ethics which are needed to be followed by the all members for their effective and better performance. If is it followed by the all staff than organisation will able to achieve its goal and objectives because all employees are performing as per the instructions or guidelines of the company. KFC has set best practices which can help the organisation to perform effectively and efficiently. It helps to the company to makes a standard so all persons who work in the KFC can follow it and meet the requirements of it. It helps to increase the reputation and goodwill of its business (Brunner, 2014).

2. Reliability at KFC means:

Reliability is needed for every business so that consumers can attract towards the company. KFC is known for its chicken products but is not adding chicken in its products so consumers get unsatisfied from the organisation. Consumers are not happy with it and complained on the news paper and social media. It affect the sales of company and persons were not willing to buy the products of it. It means KFC is loosing the reliability of its customers. So it is essential for the organisation to maintain the reliability so that it survive for a long time and satisfy the persons. But at present persons people reliable on the company because its is serving best quality of its food products (Wang and et. al., 2015).

You can also read about: Organisational Behaviour and its Importance in Management

3. Suggest at least three best practices that can help KFC improve reliability

Three best practices are as follows which can improve the reliability of KFC:

  • KFC always focus to provide the quality food with effective services to the consumers and its helps to improve the reliability of KFC.
  • KFC can instruct all workers that it should follow the all rules and regulations of the organisation so that work can be done effectively and as per the requirement of company. It can help the KFC to improves its reliability because employees can able to satisfy the needs of consumers.
  • Minimize defects delivered so that it can makes its delivery fast and it can deal with more customers and it helps in consumer satisfaction. If customers are satisfied than it helps to improve the reliability of KFC (Schönsleben, 2016).

 4. Analyse how these best practices can help KFC improve reliability

Best practices includes certain rules, regulation, ethics and beliefs which are needed to be maintain and follow by the all members of the company. It help the KFC to improve reliability because all employees has perform its task and duties per the guidelines of the organisation. If all staffs are performing its roles as per the requirements than company will able to satisfy its customers and consumers can believe upon the organisation that it provides the better products (Waters and Rinsler, 2014).

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CONCLUSION

As per the above report, it has been concluded that effective supply chain and logistic can help the company to improves its performance so that it can satisfy the consumers. KFC wants to improve its logistic and supply chain so that delivery system can be enhanced. It also use e- commerce ans e-business in its organisation so that it can makes its operations effective and grab the more market share. To improves the reliability it applies best practices so that it can meet the requirements of its consumers and minimise the delays in delivery of its products.

REFERENCES

  • Beske, P. and Seuring, S., 2014. Putting sustainability into supply chain management. Supply Chain Management: an international journal. 19(3). pp.322-331.
  • Bichou, K., 2015. The ISPS code and the cost of port compliance: an initial logistics and supply chain framework for port security assessment and management. In Port Management (pp. 109-137). Palgrave Macmillan, London.
  • Chardine-Baumann, E. and Botta-Genoulaz, V., 2014. A framework for sustainable performance assessment of supply chain management practices. Computers & Industrial Engineering. 76. pp.138-147.
  • Cosimato, S. and Troisi, O., 2015. Green supply chain management: Practices and tools for logistics competitiveness and sustainability. The DHL case study. The TQM Journal. 27(2). pp.256-276.
  • Hugos, M. H., 2018. Essentials of supply chain management. John Wiley & Sons.
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