The effectiveness of Kellogg supply chain

The tertiary sector Is normally regarded as the final stage of a given supply chain exercises, whose major emphasis is on facilitating the efficient provision of services to customers. Among the numerous firms which are part of this supply chain sector include those operating within the banking, transportation and insurance industries, among others. There are two main occasions under which certain sections of the primary sector may end up operating as retailers, one of these being when there is a lot of concern about the nature of the products being offered to customers (Lawrence et a’, 2011).

For instance, a fisherman may decide to sell fish directly to customers at the shores of the lake where he had gone fishing if he Is convinced that there is no way he Is going o preserve the fish well for a few days before he decides to sell them In the market.

Secondly, players wealth the primary sector may be compelled to deal directly with customers in situation when there is increased demand for their products. A good example of this is that of a farmer who decides to sell his milk directly to consumers as opposed to first taking it to a processing plant when the demand for this commodity increases significantly.

Question Two: One way through which Kellogg demonstrates good supply chain management is hat of its decision to locate its manufacturing plants near its distribution channels or markets where the demand for its products is high. This is of great significance in making the company’s operations to become more efficient, more so through enhancing Its ability to undertake its business activities In a faster and cost effective manner (Lawrence et al, 201 1).

The effectiveness of Kellogg supply chain can also be depicted by Its decision to establish partnerships with other companies, an aspect that has continued to put It n a better position of realizing the benefits associated with the concept of economies AT scale (Kellogg, I en agreement Tanat ten entity manage to get Into Walt toner corporations has also impacted positively on the company’s drive to cut down its carbon emissions, with this subsequently ensuring that it not only keeps on complying with the existing regulations but also continues to strengthen its corporate image.

Kellogg is also fully committed in ensuring that its products reach different markets within the shortest time possible, an aspect that is an integral component of DOD supply chain management.

This can be evidenced by its decision to enlist the assistance of many intermediaries as a way of increasing the scope of its transportation and distribution channels. Nevertheless, Kellogg should consider substituting the use of fuel energy with that of solar energy while purporting its manufacturing exercises.

Doing this will enable the firm to not only minimize the huge manufacturing costs which it currently incurs but also to ensure that its production processes become more environmental friendly. Question Three: One of the major reasons as to why Kellogg maintains strong relationships with businesses in the tertiary sector is that doing this creates a concrete platform for the corporation’s products to appeal well to its consumers.

This gives a candid explanation as to why Kellogg entered into an agreement with Tests meant to allow its products to continue being displayed in the latter’s stores. Kellogg collaboration with tertiary sector entities can also be attributed to its allure in ensuring it continues to purport successful business activities.

For instance, maintaining good legislations with banks makes it possible for the entity to acquire additional funds to finance its operations or investment activities (Leman, 2010).

Question Four: The major benefit that can be realized from the decision of large manufactures like Kellogg to outsource some its activities to specialist companies like TAG is that of making the formers supply chain and distribution channels to become more efficient. The achievement of this objective is usually facilitated through the emphasis of these specialist entities to employ computerized systems while reporting stock handling and logistic functions for their clients, with this enhancing the timely and cost efficient delivery of stock in the larger manufacturers’ retail stores (Choc, 2011).