Kfc logistics model and supply chain analysis
To note, DHL has no extensive history of managing the supply chain of food-service chains. Brands Inc. What went wrong? While shipping expense is obviously something to control, it is also inexorably tied to service. Definitely not a good look for the franchise. So many people contacted the police, in fact, that the Tower Hamlets Metropolitan Police Service tweeted a plea to the general public to stop: Please do not contact us about the KFCCrisis — it is not a police matter if your favourite eatery is not serving the menu that you desire. The chicken crisis left many angry and upset. In other words, Bidvest has more specialized experience in the space KFC operates in. For supply chain people the takeaway should be that customers, however demanding they are, can be co-opted with honesty and a degree of direct engagement. Logistics is Not a Cost Center: Too many business leaders still think of logistics and transportation simply in terms of cost. Read More.
The chicken crisis left many angry and upset. Although humor with a touch of self awareness can help, it will still take a while for the backlash to settle down completely. Amazon is taking us into the future with innovations like Amazon Flex and Amazon Key. Having many restaurant locations to deliver to leaves a lot of room for potential error.
Food supply chains approach things differently.
Given how well at least on the surface Bidvest was performing, how did DHL compare? What can we learn from this? For all the aspects Bidvest was delivering satisfactorily, what evidence did DHL have to show how they would deliver equally or better?
There will always be chances for mishaps, big or small, and businesses need to be prepared for all of it. Related Resource The purpose of this study is to understand the value proposition of supply chain network design technologies, including user satisfaction and key benefits and barriers to using these technologies. What Went Wrong Early stories detailed the causes with interviews of union leaders, academics and consultants who collectively pointed to a botched cutover from one third-party logistics partner, Bidvest, to another, DHL. Perhaps they read this article, haha! Things like contamination can affect all of your inventory, therefore having multiple locations to ship out of is beneficial. Brands Inc. Logistics is all about successfully closing the deal with customers at the last point of contact. In fact, flexibility with suppliers upstream and postponement strategies in production continue to offer savings in product cost, even as customer demands grow for precision and personalization in delivery. Some restaurants could only serve a limited portion of the menu, while some closed completely. For most product categories, however, the biggest issue is customer disappointment and maybe lost orders. When you make strategic decisions like switching delivery partners, there needs to be a rigorous decision-making process that considers multiple perspectives and numerous factors other than money. Customers Can Be Coaxed: The favorite takeaway in most business coverage of the KFC story is all about how brilliantly marketing handled the screw-up. Food supply chains approach things differently. So many people contacted the police, in fact, that the Tower Hamlets Metropolitan Police Service tweeted a plea to the general public to stop: Please do not contact us about the KFCCrisis — it is not a police matter if your favourite eatery is not serving the menu that you desire.
based on 10 review