The products are manufactured in nearly 19 countries and are
distributed in 160 different countries around the world with the help of their
vast distribution network. The company has approximately 40 types of cereals
and snacks including Kellogg’s corn flakes, Special K, Fruit n’ Fiber, Rice
Krispies and Nutri grain cereal bars with several other products.
The planning system of the company is known as Kellogg’s
planning system (KPS). It is a large scale, multinational company with vast
production and distribution program. An operational unit of KPS decides where
the products will be manufactured and will be distributed to. Smart strategy of
KPS to have a monthly detail of the company provides better outlook to design a
budget, and to take expansion and distribution decisions. Operational KPS helps
to reduce the cost of production, distribution and inventory.
Channel of distribution is a powerful strategy of marketing.
It is designed in such a way that customers are connected to the products and
the company producing those products. Distribution strategy of every company is
designed on the basis of behavior and consumption of customers. Sales are
increase when location of market is distributed this is the reason why
Kellogg’s have manufacturing units in 19 countries. There are three main levels of supply chain,
most evenly distributed. It is divided in 3 sectors. Primary sector is the
sector to which raw material is transferred from all around the world.
Kellogg’s has the best distribution strategy which is
requires to do effective business in this world. The choice of distribution is intensive;
all of the products are widely and readily available. They have distributed
their products not only big shopping hubs like Walmart, Tesco etc. but also at
local shops and at college vending machines.
In this report these is discussion about the distribution
network of the Kellogg Company. The company is using the retail storage with
customer pickup and what are the benefits by using this distribution network
are discussed in detail.
Reference of Network
distribution at Kellogg Company
Wordpress.com. (2018). Distributional
Channelling By Kellogg’s. Retrieved fromhttps://mpk732t12016clusterb.wordpress.com/2016/05/16/distributional-channelling-by-kelloggs/
Wordpress.com. 2018. Distributional Channelling By Kellogg’s.
https://mpk732t12016clusterb.wordpress.com/2016/05/16/distributional-channelling-by-kelloggs/.