Business Technology

You get what you pay for! - The KFC/DHL Disaster

I have got to say, that when I first heard about the KFC / DHL shenanigans I did laugh out loud. However when I researched more it just made me sad about the way business has been conducted. At face value it appears that KFC wanted to make cost savings by bringing in a new delivery partner who could slash costs and still fulfil the contract.

Boutique specialist food distribution group Bidvest, who were the previous supplier, (who as far as we can tell over the past years have never allowed KFC to run out of chicken!) were obviously doing what they were asked. Somebody somewhere decided that good old British pounds could be saved and with so many businesses focused on the bottom line and only the bottom line, they made the switch to another vendor and have fallen foul (pardon the pun!).

The reason this struck home to me is that in my line of business (IT & Unified Communications) we see it all the time. We have to educate our potential and existing customers of our added value and why we can't always be the cheapest. That customer service does cost a little bit extra, but there is substance behind the business offering and it will and can be delivered time and time again.

It has been estimated that 255 job losses and closure of a Bidvest depot has occurred. I am certain it was a carefully judged decision by the team involved at KFC but boy has it backfired. So next time you are looking to save money from contracts and services that you may have, just remember you really do get what you pay for! Let that be a lesson for you...

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