Supply Chain Management of Kellogg’s Cornflake

Presented by :Olayemi Oniyinde

From the factory to the shelf

Outline Introduction Company profile Vision & mission statement Historical dates Stages in supply Chain Conclusion. Survey Questionnaire.

• The Kellogg Company, the manufacturer of Kellogg Cornflake, is the world’s largest producer of breakfast cereals. Kellogg Company is an American multi-national food company headquartered in Battle creek,, Michigan, United States.

• The Kellogg Cornflake Company began in 1906 with the Kellogg’s brothers who originally ran a sanatorium in Michigan, USA.

• It largest factory is at Trafford park in Manchester, United Kingdom, which is also the location of its European headquarter.

• It products are manufactured in 19 countries and sold in more than 180 countries.

Vision & mission statement

Vision –“To enrich and delight the world through foods and brands that matter”

Mission – “ To drive sustainable growth through the power of our people and brands by better servicing the needs of our customer and communities.”

Operating principles – To remain consumer centric. Execution of excellence Prioritize to win Continuous efficiency improvement

Historical Dates

World’s leading breakfast cereal manufacturer since 1906. 1914- The production Kellogg cornflakes expanded worldwide 1922- The battle creek toasted cornflake company changed their name to

the Kellogg Company 1938- The company continues to expand and build plants in England &

Australia. 1970- Became the first cereal company to voluntarily list the amount of

sugar in its cereals on the side panel of its package. 1999- Acquisition of Warrington 2000- Acquisition of Kashi foods 2006- Celebrates its100 th anniversary. 2010- United way recognized Kellogg Company with the spirit of America

award- its largest honor for overall community efforts, the first Michigan based company to win the award

Historical dates - Cont’d

• 2012 – Announced partnership with Singapore-based Willmar international & acquires Pringles from P& G.

Kellogg’s Supply Chain stages

• Covers three sectors of industry –i. Primary (raw materials), ii. Secondary (manufacturing) iii. Tertiary (services)

• Businesses aim to eliminate waste in the supply chain e.g. reducing carbon emissions, use of energy and water, improving packaging.

Primary sector• This where the raw materials is provided to

the company and it is the first stage of Kellogg Cornflake supply chain process.

• Ingredients– Honey, soya bean oil, malt flavor, salt, sugar, cocoa, Vitamins, Iron, folic acid, corn syrup.

• Each of these materials is received from a separate supplier.

• Other individual suppliers are the plantation and mills that will provide milled corn needed for the production of Kellogg’s cornflakes.

Secondary sector

• Kellogg’s specialises in the manufacturing area and uses partners for other activities e.g. transport, with Service Level Agreements.

• It operates 5 big plants in the USA, U.k Canada : Battle creek, Michigan, Memphis, Tennessee, Lancaster, Pennsylvania, Ontario, Canada, Trafford Park, U.k.

• Its R&D programmes develop new recipes• It locates manufacturing plants near to its

distribution partners for efficiency.

Stock storage and transportation

Tertiary sector

• This is the final stage in the supply.

• The tertiary sector provides services• .• This sector involves retailers like

supermarkets that purchase manufactured Kellogg’s Cornflakes.

• Kellogg’s relies on relationships with retailers to reach consumers, e.g. developing new displays for easier promotion of its products

Conclusion• Supply chain need to interact to ensure

goods or services reach consumers.• Specialization is more cost-effective for

Kellogg’s

• Partnering with other industry specialists reduces costs to the business, the customer and the environment.

• Through effective supply chain management, it benefits itself, the environment and other

THE SUPPLY OF KELLOGG’S CORNFLAKES CEREAL IN DAVIDSON’S COUNTY, TENNESSEE

• RETAIL STORE EVALUATION SURVEY QUESTIONNAIRE.

• Target group- Retail store managers • 1. What is the zip code of your store?• Zip code:• 2. Where do you get Kellogg’s Cornflakes cereals

from?• Davidson County• Out of County• Out of state(Tennessee)• Note: This question is to know and track source of

the cornflake products delivered to them and how close it to the warehouse(s).

SURVEY QUESTIONNAIRE• 3. What is the mode of transportation used in bringing these Kellogg’s cornflakes cereal

to the market place?• Own truck• Rental truck • Shared truck• Specify :_• Note: There are different modes of transportation; i want to know the exact mode

through which Kellogg’s Cornflakes product is being delivered.• 4. How many miles do you travel to get it to the shelf?• –• Note: This is to determine the distance (food miles) in miles from the warehouse(s) that

deliver this product.• 5. What amount of Kellogg’s Cornflakes cereals come from within Davidson County,

TN.?• Less than half of sale.• Half of sale.• More than half of sale.• Note: This is to determine the aggregates of Kellogg’s Cornflakes product from the

county and those that come outside the county.

SURVEY QUESTIONNAIRE• 6. How do you package Kellogg’s Cornflakes cereal?• Boxes.• Crates.• Others, specify –• Note: To know how is being packed to prevent it from

damage of any form.• 7. What storage method do you use?• Please, specify:-• Note: To know how the product is being stored to

prevent it from spoilage.• 8. What major factor determines the prices of Kellogg’s

Cornflakes cereal?• Competition.• Distance from the supplier to shelf.• Others, specify:-

Survey Question

• 9. What marketing constraint you face in selling Kellogg’s Cornflakes cereal?• Distance from manufacturer to shelf.• Transportation.• Government regulations.• Others, specify:-• Note: To identify some of the bottlenecks faced in marketing the products.• 10. Does the store layout on this store make it easy for customer to find what they want?• Strongly disagree.• Somewhat disagree.• Neutral.• Somewhat agree• Strongly agree.• Note: This is to identify the improvement that can be made in the store layout.• 11. When a customer has a problem, this store shows a sincere interest to solve it.• Strongly disagree.• Somewhat disagree.• Neutral.• Somewhat agree.• Strongly agree.• Note: To reveal how costumer are being attended to and to know if they are happy with the

services rendered.

Survey Question• 12. How often does this store take inventory of this product?• Every day.• Every week.• Every two weeks• Monthly.• 13. Compared to other similar cereals in the market, the demand and

value for money of Kellogg’s cornflakes cereals is:• Excellent.• Good.• Average.• Poor.• Very poor.• Note: To know how well the product is performing in the market.

Purpose of the survey• To ensure that the retail stores in Davidson,

county, TN, have the products available when the customers want it. To improve the entire customer experience in retail stores by ensuring they have good value for their money and look at the specific operation of the supply chain that can be improved upon to make Kellogg’s cornflake cereals readily available in the shelf.