Kentucky Fried Chichen Supply Chain
Released by the Ministry of Commerce hundred catering enterprises standings, Yum topped the list for many years, the turnover of the last three years were 13. 33 billion, 16. 9 billion and 207 billion, far ahead of second-enterprises, but also its old rival – McDonald’s global fast food far behind boss as the main subsidiary of Yum, KFC denied. 2007 is the 20th anniversary of KFC(Kentucky Fried Chichen) into the Chinese market, the number of branches in mainland China have more than two thousand.
Behind the rapid development, efficient and smooth logistics system is a KFC a powerful weapon ahead of the competition. , the fast moving consumer goods supply chain requirements Fast moving consumer goods (FMCG, Fast Moving Consumer Goods or CPG, Consumer Package Goods), refers to the rapid consumption of consumers, need to constantly repeat purchase of products, typically fast moving consumer goods, including cosmetic products, food and beverage and tobacco. CPG market is a typical mass consumer market, the market capacity. With the improvement of living standards, consumer demand preferences change faster, the product tends to fierce competition, this time, the enterprise should have a supply chain thinking.
CPG supply chain must have a keen ability to capture market opportunities, rapid response capability and a shorter structure. To this end, establish a customer demand-driven pull supply chain, enhance product promotion, and ensuring the procurement of raw materials and inventory control, to make fast food chain to build a more efficient supply chain, to ensure and consolidate the business in the market position to provide strong support for the extended enterprise.
2. The logistics of the supply of KFC (A) Supplier Management KFC products are the main raw materials (Chicken, mashed potatoes, seasoning) determined by the head office supplier, usually raw materials (bread, beverage puree, vegetables, packaging, etc. ) by the district level has confirmed that the suppliers. KFC a “star system (STAR SYSTEM)” a selection of alternative suppliers, which is specifically for a global assessment of supplier management system in China since 1996, full implementation of the supplier. This assessment system consists of five areas: quality, technical, financial, reliability, and communication.
Every three to six months of regular assessment and evaluation throughout the year were, from KFC’s technical department and the purchasing department were assessed at the end of the composite score will determine the supplier of the volume of business in the next year in the share. (B) the supply of logistics model based on DRP KFC supply process is: The restaurant will be reported to branch distribution center order demand, the latter after an order to the supplier, the supplier delivery to the distribution center, distribution center under the line delivery.
This mode of operation of the logistics supply thought to follow DRP, DRP system includes two three input files and output plans, namely: the main demand planning, inventory files, supply the resource file; procurement plans, distribution plans. 1. The main requirements planning Manager of the store orders the use of term-type orders filled, raw materials into frozen goods, 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 the purchase cycle, lead time and safety stock of, and, ordering the manager considering the historical sales data and promotional activities, or weather factors to calculate the turnover 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 the stock, order quantity, the amount of allocation of the purchase details, the form signed by the 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 also be used for costing the same day. 3. Supply resource file It is affected by supply-side arrival time. This time depends on the time of transmission and processing orders, supplier response time of the order, the efficiency of distribution centers.
4. Procurement Plan Distribution Center branch of the restaurant received orders for processing, such as the number of orders found abnormal fluctuations in a restaurant, the communication and confirm, the restaurant orders must be received 15 points in the end of the afternoon, after 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 the quantity and date for production and transportation to distribution centers.
5. 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 loading efficiency, punctuality rate of fuel consumption and goods, safe rate were carried out. 3, the evaluation mode of supply logistics KFC
Through the above analysis we can see the following advantages Kentucky logistics system: First, strong support for the normal operation of the enterprise and rapid expansion; the second is based on the various restaurants on the basis of accurate demand planning procurement strategy makes the company’s inventory costs are greatly reduced; third distribution center in the entire logistics system in a central location, status and role of information systems to be truly reflected; Fourth, demand forecasting, distribution planning and other aspects of quantitative and standardized management reflects the high level of enterprise management.