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 KFC, also known as Kentucky Fried Chicken, is an

American fast food restaurant chain that specializes in fried

 Headquartered in Louisville, Kentucky

 world's second-largest restaurant chain (as measured by sales)

after McDonald's, with almost 20,000 locations globally in
123 countries and territories as of December 2015.

 The chain is a subsidiary of Yum! Brands, a restaurant

company that also owns the Pizza Hut, Taco Bell, and Wing
Street chains.

 The principal Indian KFC started with two outlet on the

elegant Brigade Road in Bangalore in June 1995.

 When it comes to sourcing chicken, getting the highest quality

is our top priority.

 Right from our suppliers’ farms to your plate, each piece of

chicken goes through about 34 checks before you take that

 And, of course, our chefs add authentic spices, fresh

ingredients and a whole lot of love to our 100% real, farm
bred chicken.

Exotic Spices- select only the most aromatic spices from the
spice capital of the world “Kerala” to make sure your food tastes
so good.

Magical Alphonso- The ‘king of mangoes’ in all its glory! Real

chunks of Alphonso is what get blended in mango burst Krushers
at KFC.

Pure Rich Cocoa- The handpicked cocoa from Ghana, blended

into a heavenly chocolate sauce that goes into your favorite
chocolate Krushers.
Operational Strategy of KFC in India

1. Localization of menu

2. Understood the operational challenges in India which were as important as

customer acquisition therefore, built a proactive supply chain.

3. In a country with over a billion people targeting a concept was a concern

which they mastered by using pricing, product mix and branding to target
young population.
Supply Chain Strategy - Critical Components of a supply chain strategy are:
KFC’s Supply Chain
 The supply chain management in KFC follows STAR system which includes Quality,
Financials, Technical, Communication and Reliability.

 It gives at most importance to these things which have helped it become one among many
successful business models.
Supplier of KFC

 KFC sources only real, 100% chicken. Venky's is the

biggest poultry company in India and is widely available
with its range of ready to eat product across several retail
stores in the country.

 KFC uses DRP system as the logistics supply

model. The DRP model is:

 Distribution resource planning (DRP) is a method

used in business administration for planning
orders within a supply chain.

 DRP enables the user to set certain inventory

control parameters (like a safety stock) and
calculate the time-phased inventory requirements.

 This process is also commonly referred to as

distribution requirements planning.
DRP uses several variables:
 The required quantity of product needed at the beginning of a period

 The constrained quantity of product available at the beginning of a period

 The recommended order quantity at the beginning of a period
 The backordered demand at the end of a period
 The on-hand inventory at the end of a period

DRP needs the following information:

 The demand in a future period
 The scheduled receipts at the beginning of a period
 The on-hand inventory at the beginning of a period
 The safety stock requirement for a period
In this system…

 The restaurant will be reported to the 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.

Cold storage system in KFC:

 'Kentucky fried chicken's outlets store items to be utilized on a consistently premise, inside a
temperature scope of –18ºC to 4ºC.

 Around 52% of the sustenance items need to be put away under these conditions before they
are utilized.

 All suppliers hold fast to Indian government regulations on sustenance, wellbeing and
cleanliness while persistently keeping up 'Kentucky fried chicken's perceived measures.

 As the ingredients move from farms to processing plants to the restaurants, KFC's
Quality Inspection program (QIP) does quality checks at more than 20 separate
focuses vulnerable Chain framework.

 Setting up of the Cold Chain has additionally empowered 'Kentucky fried chicken' to
eliminate operational wastage.
Facilities and Warehousing:

KFC has a simple supply chain process…

Step1: Raw materials are obtained from numerous suppliers and are stored at two warehouses. The
first one is the normal warehouse and the second is the Cold –storage.

Step2: All the food items are prepared at the respective branches itself except for marinating the
chicken and these are sold to the customers at the branches or are delivered at the requested

Step3: Distribution centers renew every branch as per their requirement (generally three times a
week) using organization's own particular vehicles and drivers upon the appeal of the branch
Facility processing using JIT
Inventory Management:

 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 to the to the registration department. This is an important data which is
used in the calculation of inventory. It is also used in costing for the same day.

 Inventory cycle starts from receiving the material, storing, preparation, production and serving.
It has a buffer inventory of 9 days.

 KFC uses MICROS 6.7 version as the ERP system.

 In order to manage the back orders, it takes the help of the neighboring KFC branches.