Answer to Question #262446 in Management for Sharti Siral

Question

what are the challenges KFC faces because of depending on other companies for logistics/delivery of key materials.

Answer 1

The customers experience delays in terms of product delivery which breaks the trust between KFC and their customers and therefore the competitors take advantage by promising on time delivery.

Logistics companies undergoes system breakdown which interferes with the delivery schedule thus resulting to unavoidable problems to the KFC.

The delivery materials could have low quality and the blame will be extended to KFC company .

Delivery companies have different objective compared to KFC goals and objectives therefore disagreement on delivery schedules are usual.