Case Study

Modernization of Sales and Stock Management Processes in the KFC Franchise in Kosovo and Macedonia

Në industrinë e ushqimit të shpejtë, franshiza e KFC (Kentucky Fried Chicken)  është një prej kompanive liderë në 147 vende të botës, duke përfshirë edhe tregjet e Kosovës dhe Maqedonisë. Megjithatë, përkundër suksesit global, kompanitë franshizuese ndeshen me sfida të ndryshme nëpër tregjet lokale, përfshirë këtu edhe KFC. Këto sfida lidhen direkt me stokun, financat dhe operacionet.

Modernization of Sales and Stock Management Processes in the KFC Franchise in Kosovo and Macedonia

In this case study, we will shed light on some steps and solutions that have been undertaken by our company Melita&Partners to improve KFC operations in Kosovo and Macedonia.

Challenges

Sales projections by point of sale

The need to accurately predict the volume of product sales based on type, category, and sales schedule at each point, taking into account variability in demand.

Availability of raw materials and final products

The supply of raw material and finished products is essential to KFC's operations.

Quantity and production management, loss management

The company must manage production and stock efficiently, minimizing waste and unnecessary discards.

Offering and selling the freshest possible products

To ensure the quality of the products, it is a challenge to manage the supply and control the freshness.

Visibility and performance of the entire company

Monitoring the performance of the company as a whole is a challenge to make the changes necessary for growth and success.

Speed of service

A key challenge is always fast and efficient customer service.

Team optimization

Managing the team and ensuring they are productive.

Our solution

How was the network upgrade done?

The initial step, needed to significantly simplify the system, was to improve the network infrastructure at each point of sale and at the main management center.

  • The network was virtualized, and divided into two parts for KFC Kosovo and KFC Macedonia, to have easier management separately for each country. 
  • Within these networks, the second division is then made: an external network for customers and an internal network for team operational purposes. Before this split, there happened to be a problem with network congestion, and orders were not being processed on time. This time during which the network has been blocked by congestion has cost the company.

The next step was the implementation of the customized mPOS (Point of Sale System), which is synchronized with QuickBooks Enterprise Platinum Edition, to which the company subscribes. This system allows the company to monitor and manage sales and financial processes efficiently, including the ability to monitor performance by partners in the US.

Custom reports

The mPOS system offers the opportunity for easier organization and management of information by categorizing it and allowing the creation of reports that are easily edited. Këto janë disa nga raportet e disponueshme:

  • Item search by name or barcode
  • Division of products into categories, as well as division of the menu, articles, offers.
  • Search/Add/Edit customer on sales screen.
  • Different types of payments (payment in installments, sale on credit, payment by cash, bank or card, voucher, free)
  • Analytical Turnover, Daily Turnover, Close Cash, Current Stock and Daily Sales
  • Space to configure elements in the mPOS as it suits the situation (such as configuring the product search mode for the sales window)

In the mPOS analytics category, there are automatic reports that are divided into categories: Sales, Inventory, Employee. They provide reports at any time on:

  • Best product (sold), best selling day, product performance, annual sales, dining mode report (dine-in, take-away, drive-though)
  • Stock, order report, food loss
  • Best Worker, Worker Performance, Worker Food

mPOS has made selling much simpler for the worker, and the configurations for products and offers have been made very straightforward. It has accelerated the flow of information, both for production and sales staff, as well as for managerial and operational staff who play the biggest roles in planning.

For franchises like KFC, continuity of work is essential. Precisely for that reason, our work has been fast and very successful, without affecting service interruptions. The total duration of this implementation process was only 3 months.

The result of the work of Melita&Partners with implementation in record time was really positive. In 2018, 1 year after the implementation of our systems, KFC Kosovo and KFC Macedonia managed to win the "Expanding Territories" award in Prague, KFC's global evaluation.

After implementing these changes, the company achieved improvements in these key points:

  • Each point of sale is managed as a "mini-company" with its own properties.
  • Profitability for each point is checked separately.
  • The possibility of creating different offers at any time and place has been added.
  • Every part of the financial system is synchronized with QuickBooks. 
  • The system for financial statements is automated.
  • Report generation time has been shortened.

The indirect benefits resulting from the joint work of Melita&Partners and KFC have been identified:

According to the results of this collaboration and the implementation of the mPOS system, there has been a fundamental change in the management and performance of KFC operations, bringing significant improvements in the efficiency and control of processes.

Information security and against viruses

Information security and protection from viruses, including ransomware, were important aspects addressed during the implementation of the new systems. Backing up or updating data has become an important component of information security. This process is necessary to save the company's data and ensure that it is available even in the event of an unexpected incident or equipment damage.

Conclusion

Improvements in the efficiency of operations and stock management have had a positive impact on KFC's service in Kosovo and Macedonia, with a focus on proper forecasting and planning of these processes.

In addition, the implementation of the new systems has increased the sustainability of KFC's operations in these two countries and has helped reduce waste and unnecessary discards.

The summary of this case study shows that the use of technology and management strategies can significantly improve the performance of companies in the fast food market, especially in a highly competitive market.

Contact us!

If you want to know more about the services provided by Melita&Partners, do not hesitate to contact us!

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