3. • 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.
4. 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
5. 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
6. Historical dates - Cont’d
• 2012 – Announced partnership with Singapore-based
Willmar international & acquires Pringles from P& G.
7. 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.
8. 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.
9. 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.
12. 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
13. 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
14. 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).
15. 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.
16. 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:-
17. 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.
18. 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.
19. 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.
Hinweis der Redaktion
It has 7 core Distribution Centers in areas such as Los Angeles & Chicago , and about 15 co- packers that they contract to pack Kellogg’ s products. It has a total of about 90 production lines( cookers, puffing towers, Coaters). It has 180 packaging lines. The Kellogg’s Company uses Kellogg’s Planning System(KPS) , a multi period linear program to guide to guide its production & distribution decisions.. It helps to determine where products are produced & in process products are shipped between plants and distribution centers.
Left- production line, Right – Packing Machine.
The warehouse and how stock is being transported to the storage room.
Kellogg’s employs specialist transportation & storage companies to be responsible for all its logistics aspects of its business. Two of Kellogg’s partners are Kimberly Clark & TDG. This helps to reduce distribution costs ,keeps kelloggs product competitive and allows Kellogg’s to concentrate on its specialist area of manufacturing cereals.
