Kentucky Fried

Chicken
Group Members
Sadaqat Hussain BBA-2017-004
Abeera Islam BBA-2017-044
Munaza Jamil Khan BBA-2017-009
Zaeem Shahzad BBA-2017-016

Submitted to:

Dr. Muhammad Shoaib Farooq

 Introduction
 KFC, known as Kentucky Fried Chicken
 KFC was established by Colonel Harland Sanders
 American drive-thru restaurant chain
 headquartered in Louisville, Kentucky
 second-biggest restaurant network (as estimated by deals)
after McDonald's
 is a subsidiary of Yum! Brands, a restaurant company
 By December 2013, there were 18,875 KFC outlets in 118
countries
known for its slogans "It's Finger Lickin' Good!", "Nobody does
chicken like KFC" and "So good".
History
 KFC Pakistan

 first KFC outlet in Gulshan-e- Iqbal in 1997

 presence in eighteen major cities of Pakistan
 more than 65 outlets nationwide
 menu consists of sandwiches, fried chicken,
nuggets, fries, rice dishes and drinks.
 owner is Irfan Mustafa who is partner to both the
companies (Cupola Group and Delicious Holdings)
 KFC Pakistan is subsidiary of Cupola Company
 Mission Statement

“To sell food in a fast, friendly environment that

appeals to pride conscious, health minded
consumers”
 Core Value

“We listen and actively respond to our customers.

Our decisions and actions are customer focused.
We have a passion for excellence.”
 Products of KFC
• Crispy Fried Chicken
• Zinger
• Twister
• Hotshots
• Chicken Burger
• Hot wings
• Rice n Spice
• Fish Zinger
• Nuggets
• Corn on the Cob
• French Fries
 Franchises Location
• Karachi,
• Hyderabad,
• Lahore,
• Islamabad,
• Sukkur,
• Faisalabad,
• Gujranwala,
• Rawalpindi,
• Sialkot,
• Multan,
• Peshawer,
• Jhelum,
• Sukkur,
• Murree etc.
Restaurant General Manager
(Kalma chowk branch)
Aqib Mairaj
Supply Chain Strategy
 Raw Material

Dry Food Supply Frozen Food Supply

 Burger and Buns  Chicken

 Spices and herbs  Fish
 Packaging Material  French Fries
 Vegetables
 Warehouse

North Region South Region

Lahore Karachi

Both warehouse is
divided into normal
storage and cold storage
 Procurement
To plan purchasing activities monthly budgets are
made at the warehouse from past data and
experience.
The Inventory method that is followed by KFC is the
FIFO method which means the First in First Out process
where in the goods that enters the branch first are the
ones that are first served to the customers.
At the end of each day, the staff of the branch gives
the provisions of the inventory of raw material that is
left out. The restaurant will report to branch
distribution center order demand.
Chicken
Cont.
• Sauces: Unilever provides all the sauces needed by
KFC such as Ketchup, Chilly Sauce, Mayonnaise etc.
Two weeks is the lead time for this operation.
• Spices and herbs: These are imported directly from
Singapore and Dubai. The lead time for these is more
than two months as these items are not perishable in
nature and it takes a lot of time for transportation.
• Packing Material: Due to frequent changes in
designing’s of boxes and deals offered by KFC, the
inventory of these is kept at a minimum. This is
purchased from parties namely Afeef Group and AAA.
Cont.
• Bread and Buns: From the last 4 to 5 years, KFC
has been producing bread and buns in their own
bakery. The production plant is located in Karachi.
• Fish: To cope with international demand fish is
bought from Thailand. But in Pakistan, fish is
bought from local dealers as it is a low selling
item.
• French Fries: They are also imported to Pakistan
by Yum Company through china where they come
from America.
SCM of KFC
 SUPPLY RESOURCE FILE

Supplier’s Machine Tools Distribution

Customer’s Logistics
PHASES OF PRODUCTION

DISTRIBUTE

PACKAGING
Packaging is what the
company does with the
products of the previous
stage. Packaging is the
preparing of the product
PRODUCTION to be distributed to the
consumers.
P roduction if the
extraction of raw material
to create a product.
Production is used in KFC to
obtain the ingredients of
the food that is being
prepared and preparing the
food.
 DISTRIBUTION PLANNING
Restaurant Order Generate summary tables
Number

+
Picking shipping
Required Raw Material = transportation
+
Picking Order’s and
Vehicle selection, delivery
Shipment
routes, transfers.
 EVALUATION MODE OF SUPPLY
LOGISTIC KFC
FIRST STEP
Strong support for the normal operation of the enterprise and rapid expansion

SECOND STEP
On the basis of accurate demand planning procurement strategy makes the company
inventory cost are greatly reduced

THIRD STEP
distribution center in the entire logistic system in a central location
 ZONAL DISTRIBUTION
Distribution is done on need basis. The cities are
divided into zones and the routes taken are
accordingly. Lahore is divided into 3 zones:

• Zone 1: Thokar Niaz Baig and Gulberg

• Zone 2: Walled city and Defense
• Zone 3: Multan Road and Gulshan-e-Iqbal
 QUALITY ASSUARANCE
PRODUCTS
 TEMPERATURE & SHELF LIFE CONTROL
NUTRITION & HEALTH ASSURANCE
SUPPLIER QUALITY
 RESTERAUNT QUALITY
 SANITATION AND HYGIENE
 SALES PROMOTION

 CONSUMER PROMOTION

 INTERNAL AUDIT

 EXTERNAL AUDIT
 SWOT ANALYSIS
STRENGTH
 Strong Global Presence
 Loyal Customer Base
 Variety Menu
 KFC Secret Recipe
WEAKNES
 Supply Chain & Distribution Issues
Managing Franchise
 SWOT ANALYSIS
OPPERTUNITIES
 Expanding to New Geographies
 Exploring New Food Items in Menu

THREATS
 Changing Consumer Food and Preferences
 Food Quality Challenges
 Competition from Global and Local Players
 OPERATION MANGEMENT
Operation Management at KFC

Importance:
 Improve overall Productivity
 Maintain Customization
 Increase Revenue and Leading to Enormous Profit