Last month KFC clucked up by failing to effectively manage the transition from existing supplier to new during the procurement of it's delivery contract.
Bidvest, a specialist in food delivery, lost out to a consortium of DHL (generalist logistics) and QSL, another specialist food delivery provider.
The article below from Beth Wallace is a superb breakdown of what potentially when wrong when contracts switched, with Beth recognizing the challenges procurement teams face when managing the fall out of a failed or challenging procurement exercise.
One area that stuck out for me is her point on having joint teams to project manage "go live".
In our sector, Soft Landings (and now Government Soft Landings) is a term regularly used but often missed in delivery. The concept of Soft Landings; having operations and asset management teams properly involved in the scoping, design, procurement and commissioning of a new building or built asset, seems simple in concept but is actually very challenging to achieve.
More often, procurement teams are stuck in the middle, between the Project Team who are focused on their end result (a completed building, road or product) and the Asset Team, who are primarily incentivised and focused on the day job, running, maintaining and improving the assets within their portfolio.
Procurement often are the lynch pin that can bring the two sides together. Particularly where there is a true period of mobilisation and transfer between an old supplier and new, procurement have a vital role and often unique knowledge that can help smooth the transition from Project to Asset Team.
Having worked with some major organisations recently with very complex supply chain and asset requirements, I can see the rigorous application of a process like Soft Landings truly making a difference to how we commission new complex contracts.
And, if the construction sector can get this process right, sectors like logistics will be able to learn from our work, hopefully helping organisations like KFC avoid these types of cluck ups in future.
As long as: · we follow a robust and transparent procurement process, · we have joint teams with the supplier to project manage “go live”, · we recognise that problems do happen and contingency is contractually in place to mitigate, · we don’t abdicate responsibility, managing our supplier effectively through the relationship