What You Can Learn From KFC’s Supply Chain Fowl-up

In February, nearly two-thirds of KFCs across the United Kingdom were closed or offered a limited menu after its new distributor failed to deliver enough chicken on time.

With no backup plan from KFC for how to get more chicken, customers took to social media to vent their frustrations at the fast-food restaurant chain. While KFC tried to handle the response with grace and good humour, customers haven’t been quick to forgive and forget.

Unfortunately, supply chain disruptions like this are not uncommon. In fact, 65 per cent of UK businesses experienced at least one supply chain disruption last year, according to the Business Continuity Institute. These disruptions can be especially damaging, as 55 per cent of them lead to a loss of productivity. Some of the potential losses may be mitigated through the appropriate cover, but 51 per cent of businesses don’t insure their supply chains at all.

To reduce your supply chain risks, consider adopting the following:

• Conduct regular audits and inspections of your suppliers to ensure that they are taking the necessary precautions to avoid business interruptions.
• Invest in monitoring technology to receive up-to-date information about the status and health of your supply chains.
• Organise a contingency plan in case there’s an issue with your supplier.
• Contact Bollington Insurance Brokers to discuss what appropriate covers can protect your business.