Assignment on Case Study

Operations Management

Submitted by: - Submitted to:-Prof. Hersh Sharma

Salil Shrivastava (23)
Ans 1- Supply chain consists of three key sectors:

1. Primary Sector.

2. Secondary Sector.

3. Tertiary Sector.

If we talking about the Primary sector in this sector we are using raw materials such as oil
and coal or food stocks like wheat and corn. Others are used these materials for making
finished products.

And in Secondary sector (or manufacturing) sector in this sector industries create, construct
and bring together products. Examples include car manufacturing or bakers who use
primary products. For example, in this case Kellogg’s purchases rice for rice kispies and
corn for cornflakes.

In Tertiary sector industries do not produce goods. They supply services such as in
banking , retailing and many transport industries etc.

Ans-2 The three examples by that kellogg’s demonstrates good supply chain management
are first is Just in time approach. Means efficient delivery of the product to the consumer at
the right price, in the right place and at the right time, will result in good business for each
link of chain.

effectual collaboration with all partners like TDG ,Kimberley Clark, within the supply chain.
Each company work within their expert area to provide products and services to consumers.

And they also use Lean production system for abolish waste. They used computerized
warehousing by that products are manufactured efficiently, and then transported from the
warehouses to retail customers. They avoids delays in supplying products.

Consumers and government currently look for more environmentally – friendly methods of
production and distribution systems. It is therefore more well-organized and cost-effective
for Kellogg’s to focus in the area in which it is expert- manufacturing. It does not have its
own distribution fleet but uses partners for its transport needs. In the supply chain, there are
the numbers of areas where waste can be indentified. Lean production is an inventory
system enabling the streamlining of processes and elimination of waste. Kellogg’s regularly
evaluates its production methods to ensure that they give the required outcomes and that
waste is reduced. This aids competiveness and profitability by lowering expenditure and unit
costs.

Ans- 3 It is the final stage of supply chain that is tertiary sector. It’s provide services and it
does not produce or manufacture goods. Kellogg’s employs specialist transportation and
storage companies to be accountable for all the logistics aspects of its business.

To drive sales, Kellogg’s implicated in initiatives that facilitate insert rate for retailers. An
example of this is the Shelf Ready Unit that Kellogg’s developed with Tesco. This displays
Kellogg’s products easily and effectively.

This means that the supermarket uses fewer staff time (and cost) in set up a display. The
display is striking and easier for customers to decide from, rising revenue for Kellogg’s and
Tesco.

Ans- 4 To improve a distribution, Kellogg’s collaborates with TDG a logistics specialist. This
reduces transport costs considerably and is energy-efficient. Kellogg’s has reduced both its
carbon footprint and costs as a result. TDG stores and transports pallets of Kellogg’s
cereals .by this kind of decision our distribution has improved.

The effect on the environment is good too as

heating and fuel costs are minimized. These are benefits for those company or industry,
who are using TDG. And the company Kellogg’s have become more efficient after using
TDP. And many large manufacturers uses these kind of logistics specialist.