In February 2018, London Police sent an unusual Tweet: “Please do not contact us about the #KFCCrisis,” the missive read, “it is not a police matter if your favourite eatery is not serving the menu that you desire.”
The reason for the Tweet was a supply chain fowl up at fast food giant KFC that saw most of its stock left in a warehouse, rather than making its way to stores.
The result? KFC’s reputation was battered, the chain was forced to apologise and rival fried chicken restaurants chipped away at its market share.
The incident is now considered a case study in how not to run a supply chain.
Of course a fried chicken shortage is hardly a significant incident. Indeed, it could even benefit consumers! But similar incidents have proven far more serious: plane-maker Boeing famously experienced cost overruns and lost sales when it could not source enough bolts to build its new model 787.
Boeing’s delayed 787 take-off was a wake-up call to companies around the world about the risks of large, complex supply chains. But plenty of Australian companies haven’t responded, says Chris Clements, a Partner in KPMG Australia’s Operations Advisory…
