Wednesday, August 15, 2007

KFC: dare to differ

Our speaker Warren Liu finishes his third installment at Chinabiz on the development of KFC in China. He has brought together nice material about a success story in China, and his result will be published later this month in Chinese.

Main take-away: KFC tries elsewhere in the world to outsource as much as possible, but dared to take in China a different approach. You cannot just take a success in the US and hope it will also work in China:

In order to maximize flexibility in a rapidly growing and highly dynamic market environment, KFC leased its warehouses whenever restaurant expansion required new warehouses or expanded warehouse space. This system of distribution and logistics based on direct ownership and direct management of local assets and leased warehouses provided enormous benefits in terms of maximum flexibility at minimum expense. Above all, this system provided the foundation and the infrastructure for a "growth engine."

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