The ‘Cheapest option’ isn’t always the best business choice
We all know the saying, ‘buy cheap - buy twice’.
With over half its stores in the UK closed due to logistical and distribution problems, KFC’s competitors have seized the opportunity on social media with clever digs, leaving KFC in a flap.
The boardroom decision to change logistics supplier from Bidvest Logistics to DHL has caused redundancies, shares to fall and an all up brand battering; all of this points to a PR nightmare.
The quest for cost savings has now led to KFC losing circa £1m a day and become the laughing stock of the fast food sector.
Who is to blame? Well, winning a contract is half the battle, but it’s all in the implementation, testing and clever rollout plan, catering to every eventuality. DHL didn’t deliver what they promised, but should KFC have made sure contingencies were in place?
If your core product or operation is running well and a straight forward 'eggs for eggs’ alternative supplier comes along, understand first if there is ANY real value add in changing things - ignore the price ‘benefits’ until that value add is proven for your operation. In this case, it seems this due diligence was missed with a rush to opt with cost reduction, and KFC have clucked it.
This has however given the KFC UK social media team a platform to shine on, and they have certainly kept the banterous retorts going with it’s competitors. Here are a few of our favourites that we’ve gorged upon from a neutral’s perspective…
