2 + 125% SECTION A: Answer ALL case study questions Case Study: KFC Strips DHL of Some Chicken Deliveries after UK Disruptions KFC has stripped parcel service DHL of some U.K. food deliveries, reverting to its former partner after a supply-chain breakdown shut hundreds of restaurants that ran out of chicken. The fast-food chain, owned by Louisville, Kentucky-based Yum! Brands Inc., handed some of the work back to former supplier Bidvest Logistics, part of South Africa's Bid Corp., according to a statement Thursday. KFC overhauled its U.K. chicken distribution chain in November by replacing Bidvest with DHL, a unit of Germany's Deutsche Post AG that's better known for deliveries to offices and homes. At the time, the new supplier said it was committed to setting an industry benchmark in service. The new arrangements hit a snag in February when DHL took over the work in partnership with another supply firm, QSL. The switch resulted in hundreds of KFC's 900-plus U.K. restaurants being shut for several days. Our focus remains on ensuring our customers can enjoy our chicken without further disruption," KFC said in a statement. The decision has been taken in conjunction with QSL and DHL to revert the distribution contract for up to 350 of our restaurants in the north of the U.K. back to Bidvest Logistics KFC's supply chain snapped after the German delivery partners shifted from five regional distribution sites run by Bidvest to just one in Rugby, England. At the height of the crisis. analysts at Stifel estimated that the restaurant shutdowns were costing KFC more than $2 million a day in lost sales. "In conjunction with our partners we remain fully committed to delivering excellent service to KFC's remaining 550 restaurants across the U.K.." DHL said in a statement. More than 97 percent of the U.K. restaurants are open again, KFC said, though some are still operating with limited menus. Source: Bloomberg (2018) Case Study Questions 1. Explain the difficulties faced by KFC based on the above case. (10 Marks) ch o BI SECTION B: Answer ALL questions below Question 1 Pallets and containers are two most commonly used material handling equipment. It being used to provide the right material at the right place and within the right cost. Discuss the any THREE (3) advantages and TWO (2) disadvantages of the unit load. (15 Marks) Question 2 Customer service means different things to different businesses. Great customer service has the potential to convince the existing customers to stay and even refer their family and friends. Justify FIVE (5) ways how customer service acts as a competitive weapon. (15 Marks) [Total: 30 Marks] Source: Bloomberg (2018) Case Study Questions 1. Explain the difficulties faced by KFC based on the above case. (10 Marks) 2. Identify FIVE (5) strategies KFC may implement to solve the problems. (20 Marks) 3. With the best of your knowledge, discuss a complete upstream and downstream flow in making a KFC Teh Tarik'. (24 Marks) 4. Interpret the importance of 7 R's towards KFC competitive advantage creation. (16 Marks) [Total: 70 Marks] Page 1 of 2