KFC runs out of chicken

[Digga]

BrabusMog said:

Digga said:

Moonhawk said:

The problem is, a lot of these costs are hidden - so the cost saving is hailed a success based on the headline figure and somebody gets a pat on the back (and a bonus) - whereas in terms of the overall cost and impact to the business - it may be an abject failure (e.g. offshoring IT support to India).

Agreed, as I said apropos of Carillion, this all smacks of being the result of the wrong sort of incentives being given to executives. I wonder how many heads will roll?

I presume that royalty payments from franchisees won't be forthcoming after this. It's a major cock up, almost as if they let the work experience kids run it.

Horrendous situation for franchisees. It's not like they could pop down to Costco for some bulk bags of chicken - neither the customers nor the franchise would be happy.

[Convert]

Looks like DHL have been 'winging' it. Leaving them without a (chicken) leg to stand on.

Hopefully they'll make the 'breast' of a bad situation, and it'll all be gravy by Thighsday...

[MartG]

eharding said:

Oh, the joy of winning a 14 Piece Bargain Bucket auction on eBay sold by Halmyre.

Oh, the despair of clicking the 'Express Delivery - other courier' option, and finding the courier is DHL.

[Yipper]

Vaud said:

Rovinghawk said:

Thick management convinced of their infallibility & refusing to listen to anything that doesn't suit their master plan.

Sounds perfectly feasible to me.

From the beeb

"KFC are left with hundreds of restaurants closed while DHL try and run the whole operation out of one distribution centre. Three weeks ago, KFC knew they had made a terrible mistake, but by then it was too late."

The distribution network uses software developed by the firm Quick Service Logistics (QSL).

DHL said: "Due to operational issues, a number of deliveries in recent days have been incomplete or delayed. We are working with our partners, KFC and QSL, to rectify the situation as a priority and apologise for any inconvenience."

Sounds like KFC UK tried to bring all their supply under one roof and DHL / QSL could not cope with the increased complexity and new IT systems.

KFC did not pre-test adequately. KFC's "short sharp shock" handover did not work.

The blame for this, ultimately, lies at KFC's door.

[Europa1]

Vaud said:

From the beeb

"KFC are left with hundreds of restaurants closed while DHL try and run the whole operation out of one distribution centre. Three weeks ago, KFC knew they had made a terrible mistake, but by then it was too late."

The distribution network uses software developed by the firm Quick Service Logistics (QSL).

DHL said: "Due to operational issues, a number of deliveries in recent days have been incomplete or delayed. We are working with our partners, KFC and QSL, to rectify the situation as a priority and apologise for any inconvenience."

This may also be one for the "Things that annoy you..." thread(s), but that DHL quote "We are working with our partners, KFC and QSL..." No, DHL, you are working with your (by now volcanically pissed off) customer, KFC, and your supplier (who may or may not deserve a place in the firing line next to you), QSL.

[MartG]

Yipper said:

Sounds like KFC UK tried to bring all their supply under one roof and DHL / QSL could not cope with the increased complexity and new IT systems.

It already was all under one roof, with the same IT system, just a different logistics company

[FourWheelDrift]

October 2017 - "KFC picks DHL and QSL for UK logistics"

https://www.logisticsmanager.com/kfc-picks-dhl-qsl...

[V8mate]

FourWheelDrift said:

October 2017 - "KFC picks DHL and QSL for UK logistics"

https://www.logisticsmanager.com/kfc-picks-dhl-qsl...

I wonder to what extent KFC UK is on the hook to franchisees?

[Vaud]

MartG said:

It already was all under one roof, with the same IT system, just a different logistics company

So a QSL/DHL interfacing issue?

Or more basic of DHL not having enough trucks in the right place at the right time?

[BrabusMog]

V8mate said:

FourWheelDrift said:

October 2017 - "KFC picks DHL and QSL for UK logistics"

https://www.logisticsmanager.com/kfc-picks-dhl-qsl...

I wonder to what extent KFC UK is on the hook to franchisees?

I've never seen a KFC franchise agreement but if they're anything like others I've seen, there will be penalties regarding royalty payments due etc. I'd also imagine that DHL's public liability insurance will be covering estimated weekly sales back to the stores based on historical turnover.

[Shakermaker]

We lost a contract at work last year to a competitor, and interestingly, that competitor sub-contracts or partners with DHL for the "logistic" side of the business - the commercial arrangement is perhaps not important. We used to do the whole business.

10 months later, the customer is coming back to us, asking if we can re-do the logistic part of the business, because their new supplier and/or DHL have ballsed up continuously over the last 2 months, causing them to lose/write off nearly £750k worth of stock.

[V8mate]

BrabusMog said:

V8mate said:

FourWheelDrift said:

October 2017 - "KFC picks DHL and QSL for UK logistics"

https://www.logisticsmanager.com/kfc-picks-dhl-qsl...

I wonder to what extent KFC UK is on the hook to franchisees?

I've never seen a KFC franchise agreement but if they're anything like others I've seen, there will be penalties regarding royalty payments due etc. I'd also imagine that DHL's public liability insurance will be covering estimated weekly sales back to the stores based on historical turnover.

I was thinking more about KFC UK having supply exclusivity arrangements, and the business continuity protection for franchisees where they fail to deliver.

[jas xjr]

andy_s said:

I presume there are a gazillion chicken bits stuck or floating around the motorways, lorries, warehouses and pallet dumps of the country; I wouldn't eat a KFC* until the backlog has been cleared by the more dedicated poultryvores.

*(I wouldn't eat a KFC.)

It will be fine.they can just change the use by dates on the chicken

[CAPP0]

I wonder what penalties are in place in the contract. I'm ex-DHL, management level, (worst place I ever worked in my long career but that's another story), and a few years back they took over a contract from someone else supplying food & drink on, let's just say, a VERY time-driven basis. The financial penalties for those consumables not being where they were supposed to be at the the time they were supposed to be were immense.

I probably know many of the individuals who will be having a Very Bad Week over this; I can just imagine some of the conversations, not to mention the fallout.

Schadefreude much?

[mgtony]

jas xjr said:

It will be fine.they can just change the use by dates on the chicken

Breast before date?

[Drumroll]

[quote=FourWheelDrift]October 2017 - "KFC picks DHL and QSL for UK logistics"

https://www.logisticsmanager.com/kfc-picks-dhl-qsl...


Well if you read the link DHL are actually for-filling their contract "The plan is to focus on reducing logistics-related emissions to net zero over the life of the contract," If they are not delivering the product there is zero emissions!

[nonsequitur]

yellowjack said:

nonsequitur said:

Funkycoldribena said:

yellowjack said:

I pulled into a parking bay opposite, went to the Cashpoint at Lloyds, then noticed that the store was strangely dark inside. Ah well, we didn't bother crossing the road to see if there was a note on the door

There's a joke there somewhere...

More like the first paragraph of a literary thriller. What happenened next? I need to know.

Turns out the DHL franchisee was spending too much time counterfeiting tenners, and not enough time delivering chicken. Coincidentally Jack Reacher happened to drift into town that same week. He was hungry. He searched high and low for chicken, but was surprised to find the local KFC closed. He was warned off by some heavies. He quickly worked out what was going on with a minimum of actual evidence. The police weren't interested (as they all eat at Burger King anyway). Reacher hung around looking mean and moody for a while until the heavies tried to chase him out of town, whereupon he kicked all their asses, broke the DHL franchise into little pieces, and returned the contract to Bidvest after bedding their Operations Manager in a local Premier Inn.

The end.

There. It wasn't even that hard. I reckon I could knock one of those out every 18 months or so, sell the film rights, and live comfortably in the USA for the rest of my days...

Chooker Prize, at least.

Edited by nonsequitur on Tuesday 20th February 14:32

[Pan Pan Pan]

Could this be KFC`s latest line? The French have Coq au Van (Vin) , they have chicken (still) in the lorry?.

[arguti]

Drumroll]ourWheelDrift said:

October 2017 - "KFC picks DHL and QSL for UK logistics"

https://www.logisticsmanager.com/kfc-picks-dhl-qsl...


Well if you read the link DHL are actually for-filling their contract "The plan is to focus on reducing logistics-related emissions to net zero over the life of the contract," If they are not delivering the product there is zero emissions!

KFC supply chain director Jens Hentschel said: “.....We want to deliver a new level of service to our restaurants and franchise partners.....................all to a level that has never been done before".

Certainly got the latter part right, I bet there a few sniggers in his workplace, not!

[6th Gear]

As supply problems force closure of hundreds of restaurants, KFC make emergency changes to their menu.