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...
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...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:
Vernon Rudolph is the brains behind the Krispy Kreme name. He bought a doughnut shop in 1933 and all the assets came along with the purchase, including a secret recipe and name, Krispy Kreme. Rudolph moved to Winston-Salem, North Carolina, where he opened his first Krispy Kreme shop. The business prospered and in the 1950¡¦s over ten other locations were opened. The business was able to produce 500 dozen doughnuts an hour. ¡§Revenues grew from less than a million in 1954 to $58 millions in 1974.¡¨(C-280) The company was bought out in 1976 by Beatrice Foods. This hurt the name and image of Krispy Kreme. Revenues began to fall and customers were not satisfied with the new owner¡¦s changes to the image of the doughnut giant. Then in 1982, new buyers decided to go back to the original image of Krispy Kreme and revenues again began to rise. Revenues gradually rose to $117 million in 1989 and then stayed the same over the next six years.
Krispy Kreme is a doughnut company founded, in New Orleans in 1937 the owner, Vernon Rudolph bought the recipe and did not discover the recipe himself they started selling there doughnuts in local grocery stores in the earlier years of the brand. And then expanded nationally by selling Krispy Kreme doughnuts in the biggest grocery store Wal-Mart which promoted the brand on a national scale as it branched out to other states in America such as Chicago and became big franchisers’. Krispy Kreme had an Economic boom during the 1990’s as they expand out of America to Canada and to United Kingdom, as Tesco gained rights to sell Krispy Kreme’s throughout all their branches in the UK and Ireland during 2006 Krispy Kreme began to show adverts in February advertising more sales for valentine’s day, Krispy has had such a boom that there a stores all around the world such as Colombia and Japan the strategy they used was new product development which involved bringing out new valentine’s day doughnuts which boosted sales during this time period which showed how they tried to expand their business...
Also in 1961, Kroc opened Hamburger University in the basement of a McDonald’s restaurant, in Elk Grove Village, Illinois. By 1963, McDonald’s was selling a million hamburgers a day. The company went public in 1965. In 1967 the opened their first international restaurant in Canada. In 1971, McDonald’s restaurants opened in Europe and Australia.
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.
Chick-fil-A is affected by numerous external forces which challenge upper management’s ability to make Chick-fil-A "America’s best quick-service restaurant". Through intense strategic planning, based upon the vision, mission and corporate values, Chick-fil-A has been able to establish a unique position in a very competitive industry. The corporate purpose of Chick-fil-A, "To glorify God by being a faithful steward of all that is entrusted to us and to have a positive influence on all who come into contact witch Chick-fil-A", their commitment to family and the community, and their sound business decisions, have made Chick-fil-A one of the most profitable and fastest growing quick-service restaurants in the nation.
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
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 ...
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.
Zanjirani F., Rezapour, S. & Kardar, L. (2011) Logistics operations and management concepts and models, 1st ed. London ; Elsevier.
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.
Li & Fung is a global trading group sourcing and managing the supply chain for high volume, time sensitive consumer goods. The group is associated with strong brands such as The Limited, Gymboree, American Eagle, Warner Brothers, Bed, Bath & Beyond, Levi-Strauss. With the rise of the internet, and the thrive of the B2B intermediaries, this memo will discuss the Li & Fung's E-Commerce strategy and how to use internet to facilitate supply chain management.
... conclusion, to compete with the intense competition in today’s fast-food market, KFC China differentiates the company by being innovative. Three significant innovative strategies are localizing the menu, understanding the Chinese culture, and hiring local management. KFC demonstrates that one size fits all approach in the global market does not always work. Many typical Western approach to foreign expansion is to deliver the same products or services as their original establishment. For instance, Domino’s Pizza, an American restaurant chain, nearly failed in Australia due to the underestimation of the need to adapt their offerings to the local tastes. KFC China offers important lessons for global firms. It is essential to know that to what extend the company should keep the existing business model in emerging markets and to what extend it should be thrown away.
By choosing to expand into markets later than other fast food restaurants Burger King hopes to avoid the problems of developing infrastructure and establishing a market base. For instance, by following McDonalds into Brazil, Burger King avoided the need to develop the infrastructure and mark...
The high take-up of the Internet leads to variety of opportunities in front of companies. People are more online than ever. They spend many hours each day on Social Networks such as Facebook and Google+. It is no wonder that buying and selling can now be done in a more convenient way. Although traditional shopping is still thriving, online shopping can be an alternative for people wanting to save time and money. If a certain customer plan to go shopping, it could be stressful and also be time consuming. E-business has made shopping or any kind of transactions online much easier and convenient. It introduces new facilities, opportunities and way of shopping for both vendors and customers.
Logistic management encompasses all materials flows management, from the inflow of purchased materials into works (i.e. materials planning of raw materials components and other products, transport of materials from suppliers to works, receiving and inspection and storage of materials) materials flow through manufacturing processes (i.e. materials issues and materials handling) and material (flow to customers (physical distribution (Refer fig.1 for these relationships)