KFC Splits Supply Chain Management Between Two Companies | News

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Last week, we reported on the closures of several KFC stores in the UK due to issues in the supply chain.

Failures in logistical planning from supplier DHL resulted in hundreds of KFC outlets unable to open their doors to customers due to lack of chicken. Estimations put the cost of this crisis at £1million per day.

Blame was accredited to “teething problems” in the arrangement with DHL, who had recently won the contract from renowned food suppliers, Bidvest, a food logistics specialist who had been supplying KFC for eight years prior.

Recent news indicates that KFC has now decided to split its supply needs between the two companies, with Bidvest servicing the 350 sites in the northern part of the UK. A long-term contract was signed between the two companies on Thursday 8th March.

Commenting on the move, Paul Whyte of Bidvest Logistics said: “We are delighted to welcome KFC back to Bidvest Logistics. As the UK’s leading foodservice logistics specialist, we understand the complexities of delivering fresh chicken. KFC is a valued customer, and we will provide them with a seamless return to our network.”

Whilst a spokesperson for DHL stated: “We acknowledge KFC’s decision to invite Bidvest Logistics to service its 350 restaurants in the north of the UK.

“In conjunction with our partners, we remain fully committed to delivering excellent service to KFC’s remaining 550 restaurants across the UK.”

This incident only goes to prove how important preparations and staged implementation plans are in supply chain management, especially if you are changing one of your crucial suppliers.

Additionally it highlights how companies can reduce risks in their supply chain by spreading their needs across two suppliers; an understandable and strategic move by KFC considering the recent events. Luckily, KFC have significant spend in this area which has allowed them to opt for a dual source situation.

Consulting with procurement companies who understand your needs and budget, as well as the service quality you will get from your suppliers, can help to eliminate problems like this along the way. For more information on distribution costs and suppliers, contact our specialist Charles Reid on c.reid@erauk.net.

Article by: Charles Reid

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