1

KENTUCKY FRIED CHICKEN (KFC) SUPPLY CHAIN MANAGEMENT

Ahmed Abdirahman Herzi
Lecturer, Faculty of Finance and Administrative Science
AL-MADINAH INTERNATIONAL UNIVERSITY (MEDIU), Malaysia
Tell: 0060355113939 EXT: 225 Fax: 0060355113940 MOB. PHONE:

0060-129425441

ahmed.herzi@mediu.edu.my or; hersi05@gmail.com

operator in the world whose Western Quick

Abstract:

Service Restaurant market share is greater

The Kentucky Fried Chicken (KFC) is a
major Quick

Service

Restaurant

than that of McDonald's.

(QSR)

operator in Malaysia, established back in

1973 and currently have more than 500
stores nationwide. It serves mainly chicken

Keywords:

Kentucky

based menus and also offers add-ins for its

(KFC,

consumers as well. In addition, to support

financial strength

KFCs core activities,

the company

Malaysian

Fried
corporate

Chicken
world,

is

extensively involved in poultry production

Introduction:

and processing, as well as a host of ancillary

businesses

such

as

vegetable

farming,

KFC is the world largest and most wellknown chicken restaurant, with chains in

baking and sauce production.

more
After a successful restructuring exercise,
KFCH has emerged as a strong player in the
Malaysian corporate world

with a high

reputation for excellent products, efficient

friendly

service

and

financial

strength.

Indeed, KFCH is the only KFC restaurant

than

10

thousand

locations

and

worldwide in 80 countries. KFC and its

franchised employees are more than 200
thousand in all over the world. John Y.
Brown and Jerry Messy purchased KFC for
USA for $2 million in 1964 that time KFC
become a corporation. After five years,

Colonel buys first 100 shares of KFC. In

storage or handling activities, with

1986, Pepsi Company purchased KFC. Pepsi

non-Halal products such as port meat

Company changed the logo from Kentucky

or

fried chicken to KFC in 1991 and then in

beverages.

1992 KFC 1000 the restaurant opened in

handling tools for Halal and non-

Japan and in 1994 9000th restaurant in china.

Halal products are separated but in

KFC is the part of Tricon global restaurant.

overseas market,

Tricon global restaurant is the world largest

discarded.

restaurant

storage and warehousing activities,

group,

with

in

nearly

100

its

byproducts
In

In

exported

and

alcoholic

Malaysia,

material

this practice
Moreover,

goods

are

is

during

countries around the world, which in turn

the

stored

was spun off in 1997, and has now been

together with non-Halal product and

renamed to Yum! Brands.

this will void the Halal status of the

products. In Singapore, there are no
regulation restricting the separation
between Halal and non-Halal food

Literature Review:

products to be stored together, so

In Malaysia, all KFC products are

long as there are meat juices from

given Halal status by JAKIM and

the

therefore the overall supply chain

Ugama Islam Singapura (MUIS) still

activity

acknowledge the products are Halal.

is

Halal/Haram

Halal

and

no

elements

non-

non-Halal

products,

Majlis

involved.

Although exported goods are Halal,

the import and export activities for
example

handling,

packaging/repackaging

storage
sometimes

Conclusion:

In

this

conclusion

and

regarding the overall study of Supply chain

management, it has been observed that KFC

be

in allover Malaysia follows a similar pattern

questionable. This is because there

of Supply chain, that enables it to reduce

are loopholes within the supply chain

time involved to reach end customers and

caused

network

the

Halal status

where

the

KFC

to

Halal

products are mix together during

reduce expenses in supply chain. Ultimately

it is able to reach and fulfill its end
customers needs and wants at a reasonable

or

customer

acceptable

rates

all

over

Malaysia. On the other hand KFC has yet to

References
1. Alderfer, Clayton P., (1969). An Em

prescribe a minimum living wage for its

members workers

Instead

KFC

audits

pirial Test of a New Theory ofHuma

concentrate on ensuring that employers pay

n Needs;Organizational Behaviour a

at least the legislated minimum wage and

nd Human Performance,vol.-4, no.-2,

make the correct payments into national

social security funds The great majority of

retrieved from: http://dx.doi.org/10.

members were already compliant in these

1016/0030-5073(69)90004-X, (Acce

respects and therefore, in most cases, KFC

ssed on: 23/10/2012).

compliance does not increase costs of

employing workers. In short we can say the
Supply chain management of KFC has a

2. Bokorney, J. (2007). Salaries Still Ri

sing, retrieved from:http://www.archi

positive impact on profit maximization by

ve.evaluationenginering.com/archive

considering following:
1. KFC (HQ) supplies ingredients to all its o
utlet by its own transportation network

all

over Malaysia.
2. KFC has no logistics

partners

they are self-sufficient

and efficient to all logistic

operation

involved in reaching the customers. KFC

follows a periodic review system to keep
track

on all its inventory and

demand.

market

/articles/0407/040
7salaries.asp, (Accessed on 11/10/20
11)