KFC (Kentucky Fried Chicken) is the world’s leading chain fast-food retail company. The company performs various steps in the supply chain process to bring the chicken from the farm to the customer’s plate. In fact, the chain brand employs the latest technology to streamline its supply chain processes. Today, we’ll discuss KFC supply chain management; key elements involved in the process, usage of technology, and logistical issues.
Elements of KFC Supply Chain Management Process
Some of the key elements involved in the KFC supply chain management process are as follows;
KFC implements a complicated procurement process to make sure the right quantity and quality of material would reach the company so that the company would serve hundreds and thousands of customers. However, the procurement process begins with local suppliers, which allows the company to make sure fresh supplies and maintain the cost low. The company has established high standards for procuring high-quality ingredients to ensure sure safety
Inventory & Warehouse Management
KFC has to store raw supplies and ingredients, cooked dishes, and packaged goods in different warehouses across the world. The company faces the challenge of maintaining the inventory at a specific temperature to avoid the risk of spoilage and becoming unsafe for consumption.
However, the company employs the technology and tools to track inventory levels and analyze the quality of goods in various warehouses. It makes sure that the product remains in-stock and fresh when customers order it. However, the company also employs the latest technological tools to predict demand, so that they can manufacture the right amount and avoid stockouts.
KFC functions effectively with 3PL (3rd party logistics providers) to make sure safe transportation of food items from different suppliers to the distribution center for storing and processing. The 3PL are no small fries, they employ the latest state-of-the-art technology like the following;
- RFID tracking system
- Route optimization software
- Warehouse management system
In-Store Inventory Management
After the delivery of raw food items and supplies to the franchise or the hotel, they should rightly track the inventory level to know when to reorder and restock. KFC employs the in-store inventory management system to track everything from product consumption to the daily sales information of every store. It would help the company to ensure that the company has the right stock of chickens to fulfill customer orders.
KFC employs specific delivery vehicles to make sure the quick delivery of customer orders. They have the latest GPS technology installed in them to track the location of vehicles in real time. It means that the customers would feel good that their delivery would reach to them timely in excellent conditions.
KFC Employing Information Technology
The technological tools and equipment used in KFC supply chain management process are as follows;
KFC implements automation technology throughout the supply chain process. The automation technology allows you to amplify the accuracy of orders, decrease the risk of errors, and reduce labor costs; it offers you access to inventory data in real-time. The automation of processes is as follows;
- Order fulfillment technology
- Inventory management
- AGVs (automated guided vehicles)
- Robotic arms to pick up products in the warehouse
KFC employs the latest technological tools to make sure the visibility and transparency of data, and it assists you in various business processes from procurement to delivery. It comprises of following steps;
- Tracking the weight of products and goods stored in the warehouse
- Dates of product expirations
- Stock level
- Tracking goods after received from suppliers
- Stop tracking after customers receive their orders
KFC employs a GPS-based truck for the delivery of goods across its network of hotels and restaurants. It helps the company to track the location of every shipment in real time to amplify their capabilities to fulfill their orders. However, the retail chain brand employs the combination of the latest technology and tools to ensure the smooth functioning of various supply chain processes. It results in the form of higher customer satisfaction levels and quick delivery time.
KFC Logistical Issues
Some of the main logistical issues that KFC is facing are as follows;
In order to provide tasty food to the customers, the key is to source the raw supplies and ingredients from various local suppliers and store them at the right temperature. For this purpose, the company employs 3PL service providers that have expertise in cold chain management. They would make sure that the cooked goods and ingredients remained fresh throughout the SC process.
KFC should carefully track orders for the effective management of the inventory. The company employs an integration of technology and tools for this purpose like prediction software; an automated replenishment system, and an inventory tracking system. It would track the stock level and logistical partners at different times to ensure the timely delivery of goods with limited waste.
Conclusion: KFC Supply Chain Management
After an in-depth study of KFC supply chain management; we have realized that KFC is the world’s leading retail fast food chain brand. If you are learning about the SCM processes of KFC, then you should keep in mind the abovementioned elements, logistical challenges, and technological tools involved.
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