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