Yum China Holdings, Inc. (the “Company” or “Yum China“, NYSE: YUMC and HKEX: 9987) announced the establishment of its Southwest Supply Chain Support Center in Chengdu’s Chongzhou district during a groundbreaking ceremony today.
The Southwest Supply Chain Support Center in Chengdu is Yum China’s first greenfield project, with a total investment of approximately RMB 183 million. It covers an area of approximately 34,000 square meters and is expected to be ready for service by mid-2022. The center combines integrated supply chain services, Internet of Things (IoT) technology, big data platforms and high-quality cold chain logistics facilities. It will further enhance Yum China’s supply chain capabilities and cold chain logistics service in Southwest China and support the Company’s rapid development.
“From the opening of the first KFC store in 1987, to over 10,000 stores in more than 1,500 cities today, a world-class smart, efficient and agile supply chain has always been essential to our growth,” said Joey Wat, CEO of Yum China. “The pandemic in 2020 reinforced Yum China’s determination to further invest in our supply chain infrastructure to better respond to external challenges. Looking forward, Yum China aims to create a stronger and more agile supply chain network to support the Company’s long-term growth, allowing us to reach the goal of 20,000 stores even faster.”
Since entering China more than 30 years ago, Yum China has invested heavily in the creation of a world-class supply chain management system that covers all stages from farm to fork. As of the end of 2020, Yum China had 25 logistics centers and 7 consolidation centers, covering more than 1,500 cities. Yum China also utilizes extra capacity of logistics facilities to provide one-stop customized solutions to third parties. An advanced and comprehensive cold chain design is employed at logistics facilities to ensure that the temperatures of chillers, freezers, inbound and outbound deliveries always meet Yum China’s standards.
Since 2016, Yum China has embarked on an intelligent supply chain initiative that utilizes big data, IoT, artificial intelligence, and other cutting-edge technologies. The Company has established an intelligent supply chain that ensures food safety and quality management throughout the value chain. Yum China’s intelligent IoT platform enables real-time monitoring of products and ambient temperature in in-transit vehicles across the country. The warehouse management system (WMS) is also in place to enable product e-tracking from suppliers to logistics centers, and to restaurants.
In the future, Yum China plans to step up investment in digital, logistics and other operational infrastructure, and work with partners to jointly build an innovative and industry leading supply chain.
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