The Times 100 Business Case Studies

1. The Times 100 Business Case Studies Kellogg’s Supply chain from manufacturing to shelf

2. Introduction • Kellogg’s is the world’s leading breakfast cereal manufacturer • Its business strategy focuses on growth but with regard for its effect on the environment • Corporate responsibility gives a long term, sustainable approach which delivers business benefits • Kellogg’s Global Code of Ethics shows its commitment to sustainable behaviour

3. The supply chain • Covers three sectors of industry – primary (raw materials), secondary (manufacturing) and tertiary (services) • Businesses aim to eliminate waste in the supply chain e.g. reducing carbon emissions, use of energy and water, improving packaging • Kellogg’s is not active in the primary sector but uses raw materials, eg corn, wheat, sugar

4. The supply chain - secondary • Kellogg’s specialises in the manufacturing area and uses partners for other activities e.g. transport, with Service Level Agreements • Its R&D programmes develop new recipes • It locates manufacturing plants near to its distribution partners for efficiency

5. The supply chain - tertiary • Tertiary includes retailers or service companies (eg IT) • Kellogg’s relies on relationships with retailers to reach consumers, eg developing new displays for easier promotion of its products • Stock storage and transportation link the three sectors of industry • Kellogg’s shares transportation to reduce costs and improve energy use

6. Managing the supply chain • The marketing mix provides focus for managing the supply chain • Kellogg’s manufactures the right products based on research • Controls production costs to keep prices competitive • Its partners manage the distribution and placing of products • It works with retailers to improve promotion of its products and reduce the cost of stock holdings