Business Relationships

Key to Kellogg's Success

Kellogg’s prides itself on quality cereal and other food products. The quality exemplified by Kellogg’s is due to the ability to specialize its team in producing food products, not logistical tasks.  For this reason, Kellogg’s recruits other businesses to handle these responsibilities; activity essential to supply chain management and a successful product or service.

Stock, transportation and marketing of Kellogg’s products allows the different links of their supply chain to act cohesively. Kellogg’s employs TDG, a storage company, to handle stocking and pallet responsibilities of their product. Kellogg’s also holds a relationship with Kimberly Clark, an industrial supply manufacturer, with whom Kellogg’s shares transportation methods. Lastly, Kellogg’s relationship with Tesco, a food retailer, exemplifies Kellogg’s specialty marketing through creation of an advertising unit for use in retail stores.

By Kellogg’s dividing product responsibility, it allows the company to save time and money while increasing competitiveness in product and maintaining brand integrity. Kellogg’s reduced costs by: not having to employ more workers to complete said tasks, decreasing the number of empty transportation vehicles and not having to expand production space for storage purposes. Without Kellogg’s business relationships, they may not be able to hold high standards to their products because they would need to concentrate on other aspects of business than food product creation alone. 

The information provided can be found on the Times 100 website. 

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