Kellogg Case Study
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1. Name the three sectors of the supply chain. On what occasions could certain sections of the primary sector operate as retailers?
The industrial supply chain consists of three key sectors:
Primary Sector
Secondary Sector
Tertiary Sector
Primary (or extractive) sector: In primary sector we are using raw materials such as oil and coal or food stocks like wheat and corn. Some raw materials are directly used for consumption, such as coal to power stations. Others are used for making finished products.
Secondary (or manufacturing) sector: In secondary sector, products are made from raw materials and shipped to wholesalers.
Tertiary sector: In tertiary sector that companies use services to enhance the business processes.
2. Give three examples of how Kellogg’s demonstrates good supply chain management. How can Kellogg’s make improvements both for its business and for the environment?
Kellogg’s uses a various agencies, research departments, quality, purchasing, sales, transport and distribution to manage the supply chain more effectively. In business, Kellogg’s recognize the importance of storing and transporting products effectively. Kellogg’s also working on to minimize the costs and environment impacts from transportation and storage of material. Increasingly governments are working to encourage businesses and individuals to reduce their carbon footprint and the effects of global warming.
Kellogg’s regularly evaluates its production methods to ensure that they give the required outcomes and that waste is reduced. This aids competiveness and profitability by lowering overheads and unit costs.
Kellogg’s also concentrate on customers’ requirements and their satisfaction. Customers and governments now look for more environmentally-friendly methods of production and it distribution systems. Kellogg’s 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. Kellogg’s does not have its own distribution fleet but uses partners for its transport needs.
3. Why it is important for Kellogg’s to build good relationships with businesses in the tertiary sector?
Kellogg’s has major relationship in the tertiary sector. Some