Professional Documents
Culture Documents
KFC Final
KFC Final
1
KFC
A THESIS
ON
WITH
IN PUNE REGION.
Submitted To:
Submitted By:
Sagar C. Cholke
(Enrol. No.7NBPS057)
(Class of 2009)
INC
CERTIFICAT
E
ACKNOWLEDGEMENT
The completion of this project leaves one spent, but with a sense of
road cannot be put to words. The time has come, when I take upon myself
kind souls, who have helped and supported me, on this road
on each and every step of my project. Thanking her will not be sufficient to
friends whose support and encouragement have helped me cross all the
3. Since the project is study oriented the information was collected from the
Managers and employees of KFC. Due to their busy schedule they were not able
to give me detailed information.
Methodology :
• Sampling Procedure :
• Sampling Unit :
Two KFC outlets are selected as sampling unit in the project namely KFC at
Shopper stop and KFC at Adlabs Koregoan Park.
i) Primary Data
i) Primary Data:
The collection of Primary Data has to be done by questioning the KFC manager
and employees.
Need of supply chain management is due to demanding customers not only want
reliable but also Just-in-time. Another important driver of SCM has been shrinking
product life cycle and rapidly changing technology and customer taste have increased risk
of obsolescence. Without efficient supply chain management, inventory tends to pile up
and create serious problems. Earlier, large companies could dump inventory without a
second thought, at the dealer’s premises and abdicate the responsibility of making the
final sale to the end customers. Now dealers are asserting themselves and expects goods
to be delivered only as and when needed but without any delay. New technology,
Fast food is food cooked in bulk and in advance and kept warm, or reheated when an
order is placed. Many fast-food restaurants are part of restaurant chains or franchise
operations, and standardized foodstuff is shipped to each restaurant from central
locations.
The history of the origin of the fast-food is as old as cities themselves. Here is a
chronological account of the same:
Fast-Food Restaurants :
Fast-food today sells like hot cakes, especially amongst youngsters. It has
occupied a prominent place in the list of top sought after foods in the world. It has
become a trend today of going to a restaurant for fast-food for the purpose of mid meal
snacking. The reason for the increasing consumption of fast-food is that it is readily
available, quick to make and easy to serve. Fast-food is generally high in terms of
calories, and therefore, it is not advisable to consume them in larger quantities.
Background of KFC :
KFC Corporation, based in Louisville, Kentucky, is the world’s most popular chicken
restaurant chain, specializing in Original Recipe ®, Extra Crispy TM, and Colonel’s Crispy
Strips® chicken with home style sides and five new freshly made sandwiches. Every day,
nearly eight million customers are served around the world. KFC’s menu everywhere
includes Original Recipe® chicken—made with the same great taste Colonel Harland
Sanders created more than a half-century ago. Customers around the globe also enjoy
more than 300 other products—from a Chunky Chicken Pot Pie in the United States to a
salmon sandwich in Japan.
KFC continues reaching out to customers with home delivery in more than 300
restaurants in the United States and several other countries. And in quite a few U.S.
cities, KFC is teaming up with other restaurants, Taco Bell and Pizza Hut, selling nearly
fifty years ago; Colonel Sanders invented what is now called “home meal replacement” –
selling complete meals to harried, time-strapped families. He called it, “Sunday Dinner,
Seven Days a Week.”
Today, the Colonel’s spirit and heritage are reflected in KFC’s brand identity – the logo
features Colonel Harland Sanders, one of the best-recognized icons in the world.
KFC is part of Tricon Global Restaurants, Inc., which is the world’s largest restaurant
system with nearly 30,000 KFC, Taco Bell and Pizza Hut restaurants in more than 100
countries and territories.
KFC was founded by Harland Sanders (Sanders) in the early 1930s, when he started
cooking and serving food for hungry travelers who stopped by his service station in
Corbin, Kentucky, US.
He did not own a restaurant then, but served people on his own dining table in the living
quarters of his service station. His chicken delicacies became popular and people started
coming just for food.
Kentucky Fried Chicken was born. Soon, Sanders moved across the street to a motel-
cum-restaurant, later named 'Sanders Court & Cafe,’ that seated around 142 people. Over
the next nine years, he perfected his secret blend of 11 herbs and spices and the basic
cooking technique of chicken. Sanders' fame grew and he was given the title Kentucky
Colonel by the state Governor in 1935 for his contribution to the state's cuisine.
Sanders' restaurant business witnessed an unexpected halt in the early 1950s, when a new
interstate highway was planned bypassing the town of Corbin. His restaurant flourished
mainly due to the patronage of highway travelers. The new development meant the end of
this. Sanders sold his restaurant operations. After settling all his bills, he was reduced to
living on a meager $105 social security cheque. But Sanders did not lose hope. Banking
on the popularity of his product and confident of his unique recipe for fried chicken,
Sanders started franchising his chicken business in 1952. He called it Kentucky Fried
Chicken. He travelled the length and breadth of the country by car, visiting as many
restaurants as possible and cooking batches of chicken. If the restaurant owners liked his
chicken, he entered into a handshake agreement that stipulated payment of a nickel9 for
each plate of chicken sold by the restaurant. By 1964, Sanders franchised more than 600
chicken outlets in the US and Canada.
KFC India :
KFC, One of the first fast food multinationals to set foot in India was Kentucky Fried
Chicken (KFC), owned by PepsiCo. The largest chicken restaurant brand in the world has
13,000 outlets in 80 nations. It chose Bangalore as its launch pad because the city had a
substantial upper middle class population, with a trend of families eating out. Also, it was
considered India’s fast growing metropolis in the 1990.
Bangalore outlet was opened in June 1995. Apart from Bangalore, PepsiCo planned to
open 60 KFC and Pizza Hut outlets in the country over the next seven years. However,
KFC became embroiled in various controversies even before it started full-fledged
business in India.
In India the brand is currently present in 9 cities with 34 outlets. Globally KFC is well-
known for ‘finger lickin good’ food due to its high quality standards and innovative
offerings. Its signature dishes like Hot and Crispy Chicken, Original Recipe and the
Zinger Burger are popular worldwide. In India, KFC has a select and unique tasty
vegetarian offering which include the Veggie snacker.
Mission statement:
KFC is an internationally renowned fast food industry in the world. They have the main
ambition to increase & maintain the quality in fast food industry. Their aim is to capture
the fast food market. Basically they want to provide their products to anyone that is why
they expending their branches in all over the world.
They want to increase their profit through giving maximum satisfaction & other better
facilities to people that they want. Now after catching such a marvelous position in the
International Market, KFC is introducing a new item “Boneless Fried Chicken”, with
even more attractive and charming taste.
There is a difference between the concept of supply chain management and the traditional
concept of logistics. Logistics typically refers to activities that occur within the
boundaries of a single organization and supply chains refer to networks of companies that
work together and coordinate their actions to deliver a product to market. Also traditional
logistics focuses its attention on activities such as procurement, distribution,
Maintenance, and inventory management. Supply chain management, acknowledges all
of traditional logistics and also includes activities such as marketing, new product
development, finance, and customer service.
Definition :
The main objective is to be able to have the right products in the right
quantities (at the right place) at the right moment at minimal cost.
• Facilities
– Production/Storage Sites
• Responsiveness Vs Efficiency
• Inventory
– Raw materials
– WIP
– Finished Goods
• Sourcing
– Outsourcing
• Transportation
Inventory
– retailers
• Types of Inventory
– raw materials
– WIP
– finished goods
– Lead Time
Terms Involved
• Stock out
• Reorder Point
• Safety stock
• Procurement costs
• Holding costs
• Taxes
• Obsolescence
• Stock-outs costs
• Backorders
Decisions
• When to order
– Continuous Review
– Periodic Review
Types of review :
Continuous Review
• Continuously monitored
– Q – Order quantity
Periodic Review
• Managing Product
• Information flow
• Funds flow
1. Managing product :
Distribution channel (logistics partners) : KFC has no any logistics partner as all the
distribution of materials are done by individual suppliers and KFC head office also has its
own distribution channel all over India.
2. Information flow :
3. Funds flow :
Funds Flows i.e. the money payment to suppliers and other debtors are done
through a bank account. Each and every KFC outlet has its own bank account and
the payments of each outlet is done by Head office (Delhi) through these bank
account on a monthly bases.
1. Facilities : (Production/storage)
As KFC follow a centralized system for all its raw material or ingredients are stored and
produced at the individual KFC stores. The storage of some items are done for monthly
bases and few for weakly bases.
KFC follows the Efficiency method of distribution of materials in all over India. With
help of this distribution method it is able to reduce the time involved in movement of
goods from one channel to other channel member and then reaching the customer, able to
reduce the carriage cost and holding cost involved in responsive method of distribution.
With the help of simple diagram the concept of Efficiency distribution method
followed by KFC is more transparent
Raw material like chicken, vegetables, etc are supplied from the local market of Pune like
Reliance, More, Venky’s, etc all these are maintained on weakly bases and work in
process items and finished goods are maintained on daily bases and are stored in KFC
outlet only.
4. Sourcing : (Outsourcing)
KFC has not outsourced any of its processes to any other company, all the operations and
processes are managed by KFC Head Office (INDIA) Delhi and other by individual KFC
outlet itself.
5. Inventory Cycle :
KFC follows a periodic review method for all its process like inventory maintenance
except the ingredients supplied by KFC Delhi (HO) which is maintained on monthly
bases. Periodic review involves :
CONCLUSION :
In overall study of Supply chain management ,it has been observed that KFC in all
over India follows a similar pattern of Supply chain, that enables it to reduce time
involved to reach end customers and reduce expenses in supply chain.Ultimately it is able
to reach and fulfill its end customers needs and wants at a reasonable or customer
acceptable rates all over India.
In short we can say the Supply chain management of KFC has a positive impact
on profit maximization by considering following points :
1. KFC (HQ) Delhi supplies ingredients to all its outlet by its own
transportation network all over India
2. KFC has no logistics partners they are self sufficient and efficient to all
logistic operation involved in reaching the customers.
3. KFC follows a periodic review system to keep track on all its inventory and
market demand.