Establish supply chain metrics

"Despite decades of encouragement and hundreds of millions of dollars dumped

into information technology, most companies still don't have their supply chain
metrics under control," said Joe Francis, executive director of Supply Chain
Council. "Enterprise-wide balanced scorecards, cascading supply chain metrics
and management dashboards can provide timely insights that help supply chain
managers react to disruptions -- and opportunities -- in today's volatile markets."
Francis recommends starting with metrics that can be benchmarked internally
and externally, such as cash-to-cash cycle time, return on working capital, perfect
order fulfillment and agility indicators.
Identify innovation partners

Supply chain managers must determine which of their suppliers possess

capabilities they can tap into to help produce innovations in products, services or
go-to-market strategies, said Chris Sawchuk, principal at The Hackett Group and
practice leader of the firm's Global Procurement Advisory. The procurement
organization should play a key role, he advised, by "becoming less of a process
executioner and more of a process enabler" and looking for opportunities to
improve current processes by leveraging supplier capabilities.
nvolve your employees

"Give [employees] visibility into how they impact the customer," suggested Mike
Ledyard, partner at Supply Chain Visions. "Create a metrics program that links
shop floor level metrics to customer needs and corporate objectives."
Monitor performance of all supply chain partners

"The failure of a key supplier can be disruptive and ultimately impact revenue,"
said Alex Cote, vice president of marketing at Cortera. "You want to be constantly
monitoring your suppliers so you don't get caught off guard." To keep on top of
your supplier network, "have a system in place to measure, improve and, if
necessary, replace partners," said Kharitonov.

Analyze information to meet customer needs

"Many believe that the supply chain starts at the warehouse and ends when
products have been delivered to stores," said Brendan Lowe, president of USA
business at Aldata. "This simply isn't true and is symptomatic of the 'delivery'
mindset that unenlightened retailers have. More important than ensuring
products are stocked on the shelves is that those products are [considered]
desirable by your customers." So be sure to track which products your customers
actually want and which ones they don't as part of your supply chain
management strategy.

Supply chain structure of KFC

KFC products are the main raw materials (Chicken, mashed potatoes,
seasoning) determined by thehead office supplier, usually raw materials (bread,
beverage puree, vegetables, packaging, etc.) by thedistrict 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 inChina 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 regularassessment and evaluation throughout the year were, from KFC

s technical department and thepurchasing 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.
2.
The supply of logistics model based on DRP system
KFC supply process is: The restaurant will be reported to branch distribution center orderdemand, the latter after an order to
the supplier, the supplier delivery to the distributioncenter, distribution center under the line delivery. This mode of operation
of the logisticssupply 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.

The main requirements planning

Manager of the store orders the use of term-type orders filled, raw materials
into frozengoods, 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
thepurchase cycle, lead time and safety stock of, and, ordering the manager considering
thehistorical sales data and promotional activities, or weather factors
to calculate theturnover 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 thestock, order quantity, the amount of
allocation of the purchase details, the form signed bythe store manager sent
to distribution centers .
Inventory File
Every day before work, the staff of the provisions of the inventory of raw
materials inventoryand registration. This data is the order quantity is
essential calculations, this data can alsobe used for costing the same day.
Supply resource file
It is affected by supply-side arrival time. This time depends on the time of transmission
andprocessing orders, supplier response time of the order, the efficiency of
distribution centers.
Procurement Plan
Distribution Center branch of the restaurant received orders for processing, such as
thenumber of orders found abnormal fluctuations in a restaurant, the
communication andconfirm, the restaurant orders must be received 15
points in the end of the afternoon, afte