Kellogg Co

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Algonquin College *

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2318

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Information Systems

Date

Apr 3, 2024

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docx

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6

Uploaded by DrIron9499

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Application of Theory #1 Kellogg Co: Covid Era Made by: Nikita Sakunov
Company Description: The global food manufacturing firm Kellogg Co. (NYSE: K) is based in Battle Creek, Michigan, in the United States. Since its founding in 1906, Kellogg has expanded to become one of the world's leading manufacturers of snacks, morning cereals, and convenience foods. Famous brands including Kellogg's Corn Flakes, Frosted Flakes, Rice Krispies, Special K, Pringles, and Keebler are among the products offered by the corporation. With operations in 180 nations, Kellogg employs over 33,000 people worldwide and brings in more than $13 billion in revenue annually (Wunsch,n.d.) . Summary of Situation and Supply Chain Problems: For Kellogg Co., the Covid-19 epidemic posed serious difficulties, especially for its supply chain management. The supply chain's several facets, such as planning, sourcing, production, distribution, and transportation, were all impacted by the complex disruptions. Demand Fluctuations: The pandemic caused unpredictable changes in the patterns of consumer demand, with panic buying at the start of the crisis and varying patterns of purchase behavior while lockdowns and economic uncertainty lingered. Due to Kellogg's difficulty properly estimating demand, inventory levels and manufacturing plans were out of balance. Manufacturing Constraints: Manufacturing activities were hampered by COVID-19 limits and safety standards, resulting in production slowdowns or shutdowns at many plants. The company's capacity was hampered by employee absences due to illness or quarantine. Logistical Challenges : Transportation interruptions impeded the timely flow of completed goods and raw materials across the supply chain. These included delays
in shipping, reduced freight capacity, and border closures. These difficulties increased transportation costs and made inventory management problems worse. Supplier Disruptions : The pandemic caused operational issues or vendor closures for a number of Kellogg's suppliers, causing interruptions in the company's supply chain. This led to shortages of essential chemicals and packaging supplies, which made production procedures even more difficult (Silver, 2021) . Impacts on the Organization and Customers: The issues with the supply chain affected Kellogg and its clients in a big way: 1. Sales and Finances Kellogg's sales and financial performance were negatively impacted by inconsistent supply chain performance and product availability. The firm struggled with rising expenses related to supply chain interruptions and mitigation initiatives, which resulted in revenue losses and pressure on margins. 2. Logistics and Operations: Kellogg's operations were interrupted by supply chain interruptions, which resulted in inefficiencies, longer lead times, and higher operational costs. In order to offset supply constraints, the firm had to pay extra for quicker shipment, inventory write-offs, and alternative sourcing techniques. 3. Customer Satisfaction: Delays in delivery and inconsistent product availability have an impact on customer satisfaction scores. Customers' confidence and loyalty were damaged by Kellogg's slow response to demand, which might have resulted in market share losses and reputational harm.
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