KFC’s supply chain

KFC’s 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.


The main requirements planning

Manager of the store orders the use of term-type orders filled, raw materials into frozengoods, dry goods, wet goods (short shelf life of bread, vegetables, etc.), the number of weekly orders are 1,1,2 – 4, ordering volume = demand – inventory. Demand is thepurchase cycle, lead time and safety stock of, and, ordering the manager considering thehistorical sales data and promotional activities, or weather factors to calculate theturnover of an order cycle, and then converted according to the amount of thousands of round needed the number of raw materials. Demand plans to form form, set the table,including raw materials, estimated demand, not yet reached the volume of the end of thestock, order quantity, the amount of allocation of the purchase details, the form signed bythe store manager sent to distribution centers .

Inventory File

Every day before work, the staff of the provisions of the inventory of raw materials inventory and registration. This data is the order quantity is essential calculations, this data can alsobe used for costing the same day.

Supply resource file

It is affected by supply-side arrival time. This time depends on the time of transmission andprocessing orders, supplier response time of the order, the efficiency of distribution centers.

Procurement Plan

Distribution Center branch of the restaurant received orders for processing, such as thenumber of orders found abnormal fluctuations in a restaurant, the communication andconfirm, the restaurant orders must be received 15 points in the end of the afternoon, after

La Han GroupLa Han Group ordering the distribution center personnel view existing inventory and shipment data are not revised order, the next day by email or fax sent to the supplier, which according to thequantity and date for production and transportation to distribution centers.

Distribution Planning

According to the distribution centers indicated by the restaurant’s order number and the required raw material arrival time in the system, picking orders and shipments to generate summary tables, pickers, picking, packing, shipping transportation officer under the distribution plan summary arrangements, including: capacity approval, vehicle selection,delivery routes, transfer. The assessment team through the delivery vehicle loadingefficiency, punctuality rate of fuel consumption and goods, safe rate were carried out.

Strong points of the supply chain management:

  1. strong support for the normal operation of the enterprise and rapid expansion;
  2. various restaurants on the basis of accurate demand planning procurement strategy makes the company’s inventory costs are greatly reduced;
  3. distribution center in the entire logistics system in a central location, status and role of information systems to be truly reflected;
  4. demand forecasting, distribution planning and other aspects of quantitative and standardized management reflects the high level of enterprise management.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s