A good supply chain management: a best business.

With its good supply chain management, Kellogg’s improve everyday its business. It is more efficient, and it lows its cost. I will explain you how Kellogg’s do that:

K has a really good organization of transportation and storage of materials and finished products to have to minimize costs. To do that K uses partners; it’s more efficient and cost-effective. This allows K to concentrate on its specialist area of manufacturing cereals and other food products. The company doesn’t make itself all the supply chain. So it can be more productive with this specialization. But Margaux will speak about this later.

The choice of partners is the other part of the supply chain management which permits at K to be more efficient: The Company works with major retail supermarkets such as Tesco and ASDA. These supermarkets are efficient. And k has good relationships with its partners. To the distribution, K helps retailers. To drive sales, K is involved in initiatives that help add value for retailers. So K keeps a control on the distribution.

Just-in-time system: K can provide an efficient stock inventory system. Just-in-time means that just enough product is made to fulfill orders and limited stock is kept. It’s a technique which allows products to arrive on the site exactly as they are necessary, what allows to reduce the levels of stock and by there even the investments and freshly which are connected with it. Through the good gestion of its supply chain management, K can use Just-in-time system. Its good distribution system and its computerized stock holding systems help it to keep stocks to a minimum. So it saves time and money.

The location of the business: Kellogg’s have business near to materials’ suppliers, this permit to reduce delivery costs. For example manufacturing sites are near to distribution channels, so products can reach shelves quickly.

The lean production system permits also to improve its