SUPPLY CHAIN

MANAGEMENT OF KFC
 KFC’S 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

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.
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 & N’s.(……
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”.