Case Study Tyson Foods

2120 Words9 Pages
1.0 Introduction As the business needed in the 1950s due to the increasingly complexity of supplying the businesses with materials and transporting those materials from suppliers to customers, logistics became the one of the most important business concepts. The meaning of logistics in the business firm is “having the right product at the right quantity at the right place at the right time at the right price in the right condition to the right customer”. The main purpose of this essay is to manage the company’s complete product life cycles, supply chains and the resultant efficiencies. This essay is about the interfaces between logistics and other core main functional areas, the order cycle and the inventory management of the food manufacturing…show more content…
By practicing a systematic flow enable the customers to get the products they purchase in time. Customer satisfaction also depends on the operation of the company to be efficient to provide fast and concise services to customers. On the other hand, company need to maintain sufficient level of inventory to ensure daily operations. Generally, a successful organization collaborates with various suppliers in order to prevent any risk of inventory scarcity. In this case, Tyson Foods possess many years of proved collaboration with various suppliers such as Newly Weds Foods, Zip-Pak, Hantover Inc., Hugg & Hall Equipment Co., and etc. The suppliers are ranging from general seasonings and bread to packaging and janitorial services. Tyson is vertically integrated in their chicken processing plants and operations, livestock suppliers are not concentrated. The non-concentration of suppliers presents low risk for Tyson Foods Inc. in providing feed and livestock in operations. Tysons Food is vertically integration in regards to their business cycle. Tyson produces and sells mainly chicken, beef, pork, and prepared food. In regards to the chicken, beef, pork, and prepared foods, each of them has 60, 12, 9, and 23 production plants, respectively. Followed by the manufacturing process to turn the food into packaging, it comes along with the marketing effort to push the sales, as shown…show more content…
Since Tyson has been producing a lot of products, they need to investigate what product customers want the most.In the year of 2010, the domestic chicken consumption is espected to climb up while consumption for beef is estimated to lower slightly and the consumption for pork is forecasted to be stable. As the growth of population around the world has been increasing, the consumption for international protein has been increasing too. So they need to supply more chickens then beef but have porks in the remaining amounts. As they own their farms and yards, it is easy ato keep the cattle and hogs. The foolowing figure will explain what kind of product customers want from
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