KFC Supply Chain Management

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SUPPLY CHAIN

MANAGEMENT OF
KFC

KFCS HISTORY
Kentucky Fried Chicken is a fast food
restaurant chain headquartered
Kentucky, United States, which
specializes in fried chicken.
was founded by Harland Sanders.
with the first franchise opening in
Utah in 1952.
KFC operates more than 15,000
restaurants around the world today.

KFC IN PAKISTAN

KFC Pakistan started in 1997 with


its first branch in Gulshan e Iqbal.
KFC won the title of market
leader at that time.
It has 64 outlets located nation
wide.

WHAT IS SCM?

Supply chain management is the


active management of supply
chain activities to maximize
customer value and achieve a
sustainable competitive
advantage.

SUPPLY CHAIN OF KFC

KFCs supply chain can be


summed up in 3 process:
First, raw material is procured.
All product preparation at the
branch.
Warehouses replenish each
branch according to requirement.

SCM

WAREHOUSING

KFC has its warehouses in both


North and South regions of the
country.
Northern central warehouse is in
Lahore.
Southern central warehouse is in
Karachi.

WAREHOUSES

PROCUREMENT
Planning of monthly budgets.
Supply of chicken by K & Ns.(
Unilever provides sauces.
Spices and herbs are imported from
Dubai and Singapore.
Packing material
Bread and buns.
Potatoes for French fries.
Other items

PROCUREMENT

STORAGE AND INVENTORY


Storage of chicken, spices and
herbs, bread and buns.

INVENTORY

ZONAL DISTRIBUTION

ZONAL DISTRIBUTIONS

Distributions on need basis.(JIT)


Karachi is divided into 3 zones.
Daily vehicles are dispatched
from the Southern Warehouse to
these Zonal areas.

QUALITY ASSURANCE
Surprise visits to
branches
Planned visits to
branches
Rigorous raw
material inspection
Customer
feedback.

SOFTWARE
Kfc uses the Supply Chain
Management Software to manage
its inventory.
This was developed by Siddhat
Haider.
Physically the inventory is counted
to tally with the figures in software.

COMPETITIVE ADVANTAGE
KFC is well known for the ingredients
it uses. KFC has kept emphasizing that
its chicken is different (when
compared to competition).
Colonel Sander said their chicken is
entirely different but still tender and
tasty.

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