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Kelloggs Case Study

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Kellogg’s Case Study
Question One:
There are three key sectors of the supply chain, namely; primary, secondary and tertiary sectors. The former encompasses all processes and activities geared towards transforming natural resources into primary products which are then to be used in manufacturing finished products (Choi, 2011). For instance, the forestry industry falls under the primary sector bearing in mind the fact that it focuses on transforming a natural resource, i.e. trees, into a primary product (timber).
On the other hand, the secondary sector is concerned with transforming the primary products generated from the primary sector into finished products. For instance, Kellogg’s is a …show more content…

This gives a candid explanation as to why Kellogg’s entered into an agreement with Tesco meant to allow its products to continue being displayed in the latter’s stores. Kellogg’s 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 relationships with banks makes it possible for the entity to acquire additional funds to finance its operations or investment activities (Leeman, 2010).
Question Four: The major benefit that can be realized from the decision of large manufactures like Kellogg’s to outsource some its activities to specialist companies like TDG is that of making the former’s 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 purporting 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 (Choi, 2011). Moreover, these specialists assist larger firms such as Kellogg’s to minimize the wastages which normally occur within their supply chains, more so through streamlining their transportation, distribution and storage systems (Leeman,

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