Yum China launched a worldwide recruitment program seeking high-quality suppliers at the second China International Supply Chain Expo (CISCE) in Beijing on Nov. 28.

Yum China executives and guests launch a global supplier recruitment program at the 2nd CISCE in Beijing, Nov. 28, 2024. [Photo courtesy of Yum China]

The company, which operates several fast-food chains in China including KFC and Pizza Hut, hosted a launch event at their expo booth. Ren Hongbin, chairman of the China Council for the Promotion of International Trade, attended the event along with representatives from Yum China's suppliers. 

The event highlighted the company's new digital platform for supplier recruitment, extending an invitation to high-quality global enterprises to join its supply chain network. The initiative aims to promote collaboration with like-minded suppliers for joint development and innovate procurement strategies to enhance dining options and experiences for Chinese consumers.

Chen Jianping, vice president of procurement management at Yum China, underscored that the company possesses strong brand influence and extensive market coverage, and provides its partners with stable procurement orders, giving them more opportunities for displaying their products and generating sales. "Yum China focuses on long-term cooperation and mutual development with suppliers. Additionally, we will offer a range of support and assistance, including technical support and marketing, to help suppliers continuously enhance their competitiveness," he said.

In April, Yum China launched a pilot digital supplier recruitment platform. This online platform spans its corporate website and social media, enabling potential suppliers to conveniently submit their credentials to Yum China and showcase their strengths.

The supplier recruitment platform marks a dramatic shift from traditional cooperation methods to a dynamic, interactive, data-driven approach, streamlining supplier engagement and significantly reducing manual workload and evaluation time. Promoting transparency and fairness, the platform is a key component of Yum China's "Spend Better, Buy Better" initiative, connecting the company with high-quality global suppliers. Since its pilot launch, the platform has attracted over 1,000 registrations from potential suppliers across more than 30 categories, covering over a third of the company's total business categories.

Yum China has signed deals with two Chinese and one Thai enterprise at the 2nd CISCE to collaborate on raw material sourcing and product development. Of these, the partnership with Hubei Huagui Food Co. Ltd. was facilitated through the supplier recruitment platform. As a leading supplier of lotus root products, Hubei Huagui put itself forward through the platform, and Yum China quickly responded to form a partnership. The companies have now jointly developed a new lotus root product that aligns with traditional tastes and is set to launch soon.

Over the years, Yum China has built a world-class supply chain management system, comprising over 800 core suppliers across a variety of categories, including food ingredients, beverages, packaging materials, construction, warehousing and transportation. 

Since opening its first restaurant in 1987, Yum China now operates over 15,800 outlets in China, managing six major restaurant brands — KFC, Pizza Hut, Taco Bell, Lavazza, Huang Ji Huang and Little Sheep. It has established a world-class supply chain management system, enabling its restaurants to offer ingredients from high-quality global production areas and local specialties. This covers Chinese and Western cuisines, coffee and more. 

Yum China, a first-time participant at the ongoing CISCE, is also showcasing its stories of supply chain collaboration, highlighting its use of digitalization, sustainability and smart technology to ensure the variety and quality of its products. 

Earlier this month, Yum China reported its financial results for the third quarter of 2024. The company's total revenues increased 5% year on year to $3.07 billion, marking the highest quarterly revenues in its history, with core operating profit rising 18% year on year.

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