KFC India's Supply Chain

 

      
        Hello Readers, This is Muhammad Jassim from Amrita School of Business Coimbatore. Welcome to my sixth blog on Supply Chain, Hope you find it interesting and insightful. This week blog is all about KFC India's Supply Chain Management.

KFC India :

        Kentucky's Fried Chicken which is popularly known as KFC, launched in June 1995 in India and its first outlet was established in Bangalore. As Bangalore outlet functioned as the Head office of KFC India due to its remote venture agriculturists relationship in the nation. 

        KFC started growing outside of Bangalore from 2004, by changing their menu's from only meat to serve other foods like wraps and juices which as a part of its change in operational strategy. They have also introduced few vegan menus which includes, rice, suppers and few veg side dishes. From 2014 KFC India launched a campaign "So Veg, So Good" which is menu feature of a India particular special system to target vegans upfront.

KFC India Operational Strategy :

        1. Localization of Menus

        2. Building a proactive supply chain.

        3. In a country with a population of over billion, KFC India mastered with the operational strategy of using Pricing, Product Mix and Branding to target young population.

Demand Forecasting :

        KFC usually follows Projection chart technique which is helpful to analyse their demand and project it for each day of the week. In which average of previous six Monday is considered for a Monday. Generally, Demand forecasting is done for per lakh consumption. It is also calculated monthly based on previous months data.

KFC Suppliers :

        KFC India's main supplier is Venky's Chicken, which is the biggest poultry farms in India. KFC chooses Venky's as they are in motto to source only Chicken of 100% quality. Their other supplies includes,

                1. Buns

                2. Vegetables

                3. Milks

                4. Pepsi (Every alternative day)

                6. Fries (Once a week)

                7. Paper package 

        KFC India adopted open vendor system, before getting into any suppliers contract they undergo a Supplier quality check to ensure that the particular supplier worth their deal. Once the supplier is found worthy they offer them with a Tender based price quotation.

KFC's Logistics :

        The KFC got all its consignment delivered through specialized trucks which can control on board temperatures exclusively for maintaining the freshness of the item being delivered to the outlets. Mostly for this purpose they rely on Refrigerated trucks that transfers the products from place to place. The products that are received from these transports are been checked on its arrival and the defect one's are rejected then and there. KFC has all its authority to accept or reject the product been delivered to them and the rejected item is clearly mentioned in their invoice about the reason behind the rejection. The team sends a mail within twenty four hours of delivery and it will be replaced within forty eight hours from the time of rejection.

KFC's Storage :

        The Storage yard that KFC has maintains specific temperature as the cold storage consists of a specialized storage containers in it. KFC's special maintenance committee takes care of it and they are the one's who are responsible for the storage. They follow First In First Out mechanism in their storage  and they ensure freshness in the product delivered by following this. For example, the products are stored in the numbered rows based on the date of its arrival and they are taken from it in ascending order from it.

KFC's Inventory Management :

        They follow farm to fork strategy where products are delivered from farms which are grown fresh to their consumers table. This includes Receiving of products, storing it, preparing it, using it for production and finally serving it to the consumers. In the inventory management they follow KFC has a buffer of nine days. They manage back orders with neighboring KFC branches.

KFC's Quality Control Management :

        KFC India own its Maintenance Committee which is responsible for giving its employees training of about forty five days in total. This training ensure that the employees can undergo Quality control check on their own to ensure quality if the products being sold to the consumers.