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    Kelloggs Edition 14 Summary

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    Ritu Jain
    Kellogg's began in 1906 when the Kellogg brothers developed new methods for cooking cereals without losing nutrients. Kellogg's now manufactures cereals and snacks in 19 countries and sells products in over 160 countries. The document describes Kellogg's supply chain, including raw material suppliers, Kellogg's manufacturing facilities, and retailers. Kellogg's focuses on efficient manufacturing and partners with other companies to reduce costs and environmental impacts throughout the supply chain.

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    Kelloggs Edition 14 Summary

    Uploaded by

    Ritu Jain
    396 views2 pages
    Kellogg's began in 1906 when the Kellogg brothers developed new methods for cooking cereals without losing nutrients. Kellogg's now manufactures cereals and snacks in 19 countries and sells products in over 160 countries. The document describes Kellogg's supply chain, including raw material suppliers, Kellogg's manufacturing facilities, and retailers. Kellogg's focuses on efficient manufacturing and partners with other companies to reduce costs and environmental impacts throughout the supply chain.

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    Kelloggs supply chain case summary

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    Kellogg's began in 1906 when the Kellogg brothers developed new methods for cooking cereals without losing nutrients. Kellogg's now manufactures cereals and snacks in 19 countries and sells products in over 160 countries. The document describes Kellogg's supply chain, including raw material suppliers, Kellogg's manufacturing facilities, and retailers. Kellogg's focuses on efficient manufacturing and partners with other companies to reduce costs and environmental impacts throughout the supply chain.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    396 views2 pages

    Kelloggs Edition 14 Summary

    Uploaded by

    Ritu Jain
    Kellogg's began in 1906 when the Kellogg brothers developed new methods for cooking cereals without losing nutrients. Kellogg's now manufactures cereals and snacks in 19 countries and sells products in over 160 countries. The document describes Kellogg's supply chain, including raw material suppliers, Kellogg's manufacturing facilities, and retailers. Kellogg's focuses on efficient manufacturing and partners with other companies to reduce costs and environmental impacts throughout the supply chain.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    www.thetimes100.co.

    uk

    Kelloggs - Summary

    Supply chain from manufacturing to shelf


    Introduction
    Kelloggs began in 1906 when the Kellogg brothers tried out different ways to cook cereals without losing the goodness. Their philosophy was improved diet leads to improved health. Kelloggs is now the worlds leading breakfast cereal manufacturer. It produces in 19 countries and sells in more than 160. Kelloggs business strategy is to: grow the cereal business there are now 40 different cereals expand the snack business by diversifying into convenience foods engage in other growth opportunities as they arise. Kelloggs is known for its ethical approach and its commitment to Corporate Social Responsibility (CSR). For example, its programme to promote the benefits of breakfast clubs has provided over one million breakfasts to schoolchildren throughout the UK.

    The supply chain


    Kelloggs recognises the importance of managing its supply chain ethically and effectively. This includes storing and transporting products both to keep costs down and reduce environmental impacts. The supply chain describes the stages through which a product passes from suppliers to end customers. A finished product will use resources from the three different sectors of industry: the primary sector provides raw materials the secondary sector manufactures or assembles products tertiary sector businesses provide services to customers.

    Primary sector Raw materials suppliers

    Secondary sector Manufacturers/ producers

    Tertiary sector Wholesalers/ retailers


    Transport

    and Natural products warehousing e.g. wood, oil, food stocks, earth and minerals

    Transport

    and e.g. e.g. cornflakes, warehousing supermarkets card and boxes, lass and pottery

    Transport

    Consumers

    In the past, businesses carried out several parts of the supply chain, like manufacturing and transportation, themselves, which was not always very efficient. Kelloggs now specialises in the area in which it is expert manufacturing.

    The supply chain the secondary sector


    Kelloggs is a secondary sector business. Kelloggs largest UK plant is at Trafford Park in Manchester. To be more efficient, it has moved its storage depots to be near this site.
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    It needs to consider many different aspects of its operations such as: where to locate the business size and scale Kelloggs needs large factories and good transport links where its customers are. The Food and Drink Federation (FDF) represents manufacturers and has called on its members to improve their environmental performance by reducing the use of: packaging water during production transport waste to landfill energy. Through the FDF, Kelloggs has signed an agreement with 21 major companies to improve water efficiency, reduce wastage and cut CO2 emissions.

    The supply chain tertiary sector


    The final stage in the supply chain is the tertiary sector. This involves retailers like supermarkets and service companies providing, for example, finance, IT systems or distribution. Kelloggs employs specialist companies to be responsible for its logistics. To keep distribution costs competitive, Kelloggs shares transportation costs with another manufacturer. This saves time, road miles and reduces CO2 emissions.

    Managing the supply chain effectively


    Kelloggs manages the supply chain to place its products in stores at the right time and in a costeffective way. For example, both Kelloggs and its retailers want to hold limited stocks of products to reduce their warehousing costs. Kelloggs therefore uses a system called Just-in-Time. This means that it makes enough products to fulfil orders as they are needed. Both Kelloggs and the retailer can then hold limited stock. Distribution has improved through the collaboration of Kelloggs and partner companies. The lean production system streamlines processes and eliminates waste.

    Conclusion
    Kelloggs planning helps to ensure that the supply chain for its products is efficient. Its practices also help to address environmental issues. Through effective supply chain management, Kelloggs benefits itself, the environment and other businesses.

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