Distribution Management
(Distribution Channel of a Business Company)
Submitted by:
Babie Jane T. Norono
BSBA III- Irregular
Submitted to:
Ms. Donnalyn Eugenio
Instructor
Jollibee Food Corporation
Jollibee has been known as the country's leading fast food chain; it has grown
exponentially on all aspects on operation. As regards to Jollibee’s value chain elements, the
corporation managed to enhance their production, and services to meet the needs of their
consumers.
The following are Jollibee’s value chain elements:
Supply Chain
Procurement. Some of Jollibee’s raw materials processed and manufactured products are
imported and are grown by their suppliers. Jollibee has developed long-term deals with these
partners. This means that the supply chain works in a reliable working environment between the
supplier and Jollibee. However, due to global trade barriers, coupled by the increase in crude
prices, it is possible that Jollibee scraps international sourcing activities. This could lead to
reinventing the corporation’s procurement process, and obtain what is available in the country.
Logistics. For outbound logistics, Jollibee distributes to franchises and fully-owned stores.
Because of Jollibee’s distribution system, it is an advantage to have a centralized processing and
manufacturing quarters that delivers to stores in proximity. Thus, Jollibee has a timely basis
delivery for perishables and maintain its quality until it reaches the consumers.
Manufacturer
Manufacturing. In order for Jollibee to have genuine products, the corporation has their
commissary system which is responsible for the value adding processes. Being part of the value
chain, the manufacturing process is highly technology dependent to ensure that the food is
consistent to Jollibee standards and is produced safely and cheaply without sacrificing the
quality. Jollibee's automated operations not only ensure consistent quality from batch to batch
but also ensures food safety by minimizing handling and maintaining the “C” of the
corporation’s FSC Standards which is cleanliness.
Channel of Distribution
JFC’s marketing philosophy was based on being closer to Filipino families than its
competitors. There was wide awareness that Jollibee was a local Filipino service business
establishment that had captured the unique Filipino taste, so it appealed to patriotic or “pam-
Pinoy” instincts. The chain also appealed to a broad cross-section of the population that felt
comfortable and very much at home in an environment where the crew talked to them in the
local language, unlike other outlets where the crew spoke in English and where the atmosphere
might be perceived by some as projecting an elitist appeal.
Marketing. Another key element of the Jollibee value chain is marketing and effective ad
campaigns. Jollibee ads reach the customers through media by using celebrities to promote the
company's products and citizenship, and also through its website. Also, Jollibee’s culture of
family values is very well communicated through publicity moves such as MaAga ang Pasko
which is the longest-running corporate social responsibility program by a fast food chain, and
their newest move; the Family Values Award which aims to celebrate the genuine and
irreplaceable joy of togetherness of the Filipino family.
Information can be used to decrease cost in the procurement and manufacturing. As what I have
said in the procurement Jollibee’s raw materials are imported but because of the global barriers,
Jollibee could reinvent their procurement process and get products from the country. In the
manufacturing, since operations are automated this cuts the production time. Thus, less cost in
both elements. On the other hand, it increases customer satisfaction by ensuring that they serve
clean, fresh, quality products.