Kellogg's Case Study Questions 1)Name the three sectors of the supply chain.

On
what occasions could certain sections of-the primary sector operate as retailers?
The three sector of Kelloggs supply chain are primary (extractive), secondary
(manufacturing) and tertiary sector. Some raw material sections of the primary
sector could operate as retailers. For example coal can be sold to power stations. In
addition oil, wheat and corn can also be sold individually in order to act as
retailers.2)
2) Give three examples of how Kelloggs demonstrates good supply chain
management.How can Kelloggs make improvements both for its business and for
the environment?
Kelloggs uses a range of agencies and departments for research, quality,
purchasing, sales, transport and distribution to manage the supply chain more
effectively. It tries to manufacture the right products by doing a research on
customer needs. The company also focuses on cost-effective systems in order to
ensure that its prices are competitive. Another management of Kelloggs supply
chain is that it works with retailers to improve promotion of its products. Kelloggs
can make improvements for its business and also for the environment by focusing
even more on its production methods to increase their outcomes and to reduce the
produced waste from the production process that is harmful for the environment.
3)Why is it important for Kelloggs to build good relationships with businesses in
the tertiary sector?
Building good relationships with businesses in the tertiary sector makes it easier
for the business to focus more efficiently on its specialist are which is to
manufacture cereals and other food products. As an example, Kelloggs works with
Kimberler Clark to get transportation. This results in a decrease in Kelloggs
distribution costs thus makes its products more competitive. Evenmore,
relationships with other businesses also helps to reduce the number of part-full or
empty vehicles on the road so all of the products can be reached to a certain place
at the same time. The importance of this is that it saves time, road miles and less
gas is used which saves Money. All in all, building good relationships in this sector
results in an increase in turnover for Kelloggs.
4)Evaluate the benefits of large manufacturers like Kelloggs handing over the
logistical side of their business to specialist companies like TDG.
The most important benefit of Kelloggs collaboration with TDG is that it
increases the efficiency of Kellogs distribution system. Kelloggs distribution is
based on a system called just-in-time and TDG makes this system work properly.
TDG uses computerized stock holding systems which shows immediately when
then the shelves in the ware house are empty. So the shelves are always kept full
and orders are delivered on time. This helps Kelloggs to keep stocks to a
minimum and prevents unnecessary expenses. Another benefit is that TDG keeps
the warehouse costs low through its specialist transportation systems. This also
prevents Kelloggs to make unnecessary payments. In addition, working with
retailers such as ASDA and Tesco benefit as they store the products witgout
storage costs.