Incident: KFC Chicken Shortage Due to DHL's New Computer System Failure

Published Date: 2018-02-20

Postmortem Analysis
Timeline 1. The software failure incident at KFC, where the new computer ordering and delivery system failed, happened in February 2018 [67932].
System 1. New computer system for ordering and delivery at KFC [67932] 2. Delivery system managed by DHL [67932]
Responsible Organization 1. DHL - The software failure incident was caused by operational issues related to a new computer ordering and delivery system implemented by DHL, the delivery firm responsible for KFC's supply chain [67932].
Impacted Organization 1. KFC branches across the UK, leading to the closure of almost two-thirds of its 900 UK branches [67932] 2. Customers who were unable to get their favorite fast food due to the closures [67932] 3. Franchisees of KFC who were losing hundreds of thousands of pounds due to the closures [67932]
Software Causes 1. The failure incident at KFC was caused by a new computer software system developed to manage orders and deliveries that failed, triggering a delivery chaos [67932]. 2. The chaos was further exacerbated by operational issues related to the software around a new computer ordering and delivery system [67932]. 3. The software failure led to a huge backlog of deliveries, causing supply disruptions and shortages at KFC outlets across the UK [67932]. 4. The software issues with the new delivery system, developed by QSL, resulted in incomplete or delayed deliveries, impacting the supply chain [67932].
Non-software Causes 1. The failure incident was triggered by an accident that shut the M6, causing traffic gridlock and reportedly leaving DHL lorries sat in traffic for hours, sparking a huge backlog of deliveries [67932]. 2. There were operational issues at DHL, the delivery firm responsible for KFC's supply chain, which worsened over the weekend [67932]. 3. The chaos had a knock-on effect which centered on a DHL delivery hub in Rugby, with KFC first becoming aware of a problem in the software around a new computer ordering and delivery system on Friday [67932]. 4. The delivery problems were exacerbated by the fact that DHL was trying to run the entire operation out of one distribution center, leading to conditions described as an "utter shambles" [67932].
Impacts 1. Up to 570 KFC outlets across Britain were temporarily shut down due to the delivery problems caused by the software failure incident [67932]. 2. KFC franchisees collectively lost hundreds of thousands of pounds due to the closures of the restaurants [67932]. 3. Environmental officers had to inspect a stash of chicken at a DHL depot due to registration issues caused by the software failure incident [67932]. 4. KFC had to remove items from the menu, shorten opening hours, and operate with a limited menu or shortened hours at some locations due to the shortage of chicken products [67932]. 5. KFC faced backlash and anger from customers on social media platforms like Twitter due to the inconvenience caused by the software failure incident [67932].
Preventions 1. Proper testing and validation of the new computer ordering and delivery system before full implementation could have potentially identified any software issues and prevented the failure incident [67932]. 2. Phasing in the new delivery system gradually instead of implementing it all at once could have minimized disruption and allowed for smoother transition [67932]. 3. Ensuring that the new delivery partner, DHL, had adequate backup plans and contingencies in place for operational issues could have helped mitigate the supply disruption [67932]. 4. Implementing a more robust and redundant supply chain system to handle unexpected events like accidents or traffic gridlocks could have prevented the backlog of deliveries that contributed to the failure incident [67932].
Fixes 1. Implementing a phased approach to the new delivery system to minimize disruption [67932] 2. Investigating and addressing the issues with the computer software system developed to manage orders and deliveries [67932] 3. Improving communication and coordination between the delivery company (DHL) and KFC to prevent future supply disruptions [67932]
References 1. KFC statement on their website [67932] 2. DHL statement [67932] 3. Environmental officers from Rugby Council [67932] 4. KFC employees [67932] 5. Twitter users [67932] 6. Mick Rix, national officer for the GMB union [67932]

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization (a) The software failure incident having happened again at one_organization: The incident at KFC with the delivery system failure due to a new computer ordering and delivery system issue is a case of a software failure incident happening again within the same organization. This incident occurred after KFC switched its delivery contract to DHL and implemented a new computer software system to manage orders and deliveries, which ultimately failed, leading to delivery chaos and the closure of hundreds of KFC branches [67932]. (b) The software failure incident having happened again at multiple_organization: There is no specific information in the provided articles about a similar software failure incident happening again at other organizations or with their products and services.
Phase (Design/Operation) design, operation (a) The software failure incident related to the design phase can be seen in the article where it mentions that the KFC chicken shortage fiasco began shortly after the fast-food giant switched its delivery contract to DHL. The incident was triggered by an accident that shut the M6, causing traffic gridlock and reportedly leaving DHL lorries sat in traffic for hours, sparking a huge backlog of deliveries. KFC first became aware of a problem in the software around a new computer ordering and delivery system on Friday [67932]. (b) The software failure incident related to the operation phase is evident in the article where it states that KFC branches first started running out of food over the weekend. Initially, KFC removed items from the menu and shortened their opening hours, but hundreds have now been forced to close. Signs on many of the stores read: 'Sorry, we're closed. We deliver our chickens fresh into our restaurants, but we've had a few hiccups with the delivery today' [67932].
Boundary (Internal/External) within_system, outside_system (a) The software failure incident related to the KFC chicken shortage was primarily within the system. The failure was attributed to a new computer ordering and delivery system implemented by DHL, KFC's new delivery partner. The chaos began when the software around this new system experienced problems, leading to a huge backlog of deliveries and ultimately causing supply disruptions at KFC outlets [67932]. The failure was exacerbated by operational issues within the system, such as traffic gridlock, accidents affecting deliveries, and IT problems [67932]. (b) The software failure incident was also influenced by factors outside the system. For example, an accident that shut down the M6 motorway caused traffic chaos, delaying DHL lorries and contributing to the backlog of deliveries [67932]. Additionally, the decision to switch delivery partners from Bidvest Logistics to DHL was an external factor that played a role in the failure, as it led to the implementation of the new software system that ultimately malfunctioned [67932].
Nature (Human/Non-human) non-human_actions, human_actions (a) The software failure incident occurring due to non-human actions: The software failure incident at KFC was primarily attributed to operational issues with the new computer ordering and delivery system introduced by DHL, the delivery partner. The failure was triggered by an accident that caused traffic gridlock, leaving DHL lorries stuck in traffic for hours, leading to a backlog of deliveries. This chaos centered on a DHL delivery hub in Rugby, where KFC first became aware of problems in the software around the new system [67932]. (b) The software failure incident occurring due to human actions: The failure at KFC was exacerbated by human actions, such as the decision to switch the delivery contract to DHL and the implementation of a new computer ordering and delivery system. Additionally, there were reports of KFC workers smuggling chicken into a store in an attempt to keep it trading during the shortage, which could be seen as a human action contributing to the crisis [67932].
Dimension (Hardware/Software) hardware, software (a) The software failure incident occurring due to hardware: - The software failure incident at KFC was triggered by an accident that shut the M6, causing traffic gridlock and reportedly leaving DHL lorries sat in traffic for hours, sparking a huge backlog of deliveries. This hardware-related incident contributed to the failure in the delivery system [67932]. (b) The software failure incident occurring due to software: - KFC first became aware of a problem in the software around a new computer ordering and delivery system on Friday, which was a contributing factor to the supply disruption and subsequent closure of hundreds of KFC branches [67932].
Objective (Malicious/Non-malicious) non-malicious (a) The software failure incident related to the KFC chicken shortage was non-malicious. The failure was attributed to operational issues and teething problems with the new computer ordering and delivery system implemented by DHL, KFC's new delivery partner [67932]. The incident was triggered by an accident that caused traffic gridlock, leaving DHL lorries stuck in traffic for hours, leading to a backlog of deliveries. The software failure resulted in supply disruptions, causing KFC outlets across various regions in the UK to run out of chicken products, ultimately leading to the closure of hundreds of stores [67932].
Intent (Poor/Accidental Decisions) poor_decisions (a) The software failure incident related to the KFC chicken shortage was primarily due to poor decisions. The incident was triggered by a new computer ordering and delivery system implemented by DHL, KFC's new delivery partner. The failure was exacerbated by operational issues and traffic delays, leading to a backlog of deliveries and ultimately causing supply disruptions at KFC outlets across the UK [67932]. The decision to switch delivery contracts to DHL and implement a new software system without proper contingency planning and testing contributed to the failure. Additionally, the decision to centralize operations at a single distribution center instead of utilizing multiple centers also played a role in the supply chain breakdown.
Capability (Incompetence/Accidental) development_incompetence, accidental (a) The software failure incident occurring due to development incompetence: The software failure incident at KFC, where almost 570 outlets across Britain were temporarily shut down due to delivery problems and running out of chicken, was attributed to development incompetence. The failure was triggered by an accident that shut the M6, causing traffic gridlock and leaving DHL lorries stuck in traffic for hours, leading to a backlog of deliveries. KFC mentioned that the problem with the software around a new computer ordering and delivery system was first noticed on Friday [67932]. (b) The software failure incident occurring accidentally: The software failure incident at KFC was also influenced by accidental factors. The failure was worsened over the weekend due to operational issues and delivery disruptions, leading to KFC outlets in various regions running out of chicken products. Additionally, the chaos was exacerbated by the accident on the M6, which caused delays in deliveries and contributed to the supply disruption [67932].
Duration temporary The software failure incident related to the KFC chicken shortage was temporary. The failure was triggered by a new computer software system developed to manage orders and deliveries, which failed shortly after DHL took over delivery duties for KFC [67932]. The crisis worsened over the weekend, and by Monday, the system collapsed completely, leading to the closure of almost 700 stores [67932]. As of Tuesday, 470 KFC stores remained shut due to the ongoing delivery chaos [67932]. The incident was not permanent but rather a temporary disruption caused by specific circumstances surrounding the new software system and delivery transition.
Behaviour crash, omission, timing, value, other (a) crash: The software failure incident in the KFC chicken crisis can be categorized as a crash. The article mentions that the new computer ordering and delivery system at DHL, which was responsible for managing orders and deliveries for KFC, failed. This failure led to a delivery chaos, causing a significant disruption in the supply chain and resulting in the closure of hundreds of KFC outlets [67932]. (b) omission: The software failure incident can also be categorized as an omission. Due to the software failure, the system omitted to perform its intended functions of managing orders and deliveries efficiently, leading to a shortage of chicken products at KFC outlets. This omission resulted in the closure of a large number of stores across the UK [67932]. (c) timing: The software failure incident can be associated with timing issues as well. The failure of the new computer ordering and delivery system occurred at a critical time when KFC had just switched its delivery contract to DHL. The incident worsened over the weekend, indicating that the system was not able to perform its functions at the right time, leading to a cascading effect on the supply chain and store operations [67932]. (d) value: The software failure incident can also be linked to value issues. The system's failure to manage orders and deliveries correctly resulted in a situation where KFC outlets either ran out of chicken products or had to operate with a limited menu. This incorrect performance of the system impacted the value proposition of KFC to its customers, leading to dissatisfaction and store closures [67932]. (e) byzantine: The software failure incident does not exhibit characteristics of a byzantine failure. There is no mention of inconsistent responses or interactions from the system in the articles analyzed. (f) other: The software failure incident can be described as a logistical failure. The failure of the new computer ordering and delivery system at DHL caused significant logistical challenges in the supply chain, leading to delays, shortages, and closures of KFC outlets. This logistical failure impacted the operational efficiency and effectiveness of the delivery process, resulting in widespread disruptions [67932].

IoT System Layer

Layer Option Rationale
Perception None None
Communication None None
Application None None

Other Details

Category Option Rationale
Consequence basic, property, delay, non-human (a) death: People lost their lives due to the software failure - There were no reports of people losing their lives due to the software failure incident at KFC [67932]. (b) harm: People were physically harmed due to the software failure - There were no reports of people being physically harmed due to the software failure incident at KFC [67932]. (c) basic: People's access to food or shelter was impacted because of the software failure - The software failure incident at KFC led to the closure of almost two-thirds of its 900 UK branches, impacting people's access to food as they ran out of chicken [67932]. (d) property: People's material goods, money, or data was impacted due to the software failure - The software failure incident at KFC resulted in hundreds of thousands of pounds in losses for franchisees due to the closure of more than 80% of the fast-food eateries [67932]. (e) delay: People had to postpone an activity due to the software failure - Due to the software failure incident at KFC, more than 500 of the 900 UK stores were forced to close, leading to delays in operations and service [67932]. (f) non-human: Non-human entities were impacted due to the software failure - The software failure incident at KFC resulted in a backlog of deliveries, with a huge pile of chicken sitting inside a DHL depot in Rugby, unable to reach hundreds of KFC branches [67932]. (g) no_consequence: There were no real observed consequences of the software failure - The software failure incident at KFC had significant consequences, including store closures, financial losses, and customer dissatisfaction [67932]. (h) theoretical_consequence: There were potential consequences discussed of the software failure that did not occur - The software failure incident at KFC did not lead to any potential consequences discussed in the articles that did not occur. (i) other: Was there consequence(s) of the software failure not described in the (a to h) options? What is the other consequence(s)? - There were no other consequences of the software failure incident at KFC mentioned in the articles.
Domain transportation, manufacturing, health (a) The failed system was intended to support the production and distribution of information. The software failure incident was related to a new computer ordering and delivery system implemented by DHL for KFC, which led to supply disruption and ultimately the closure of hundreds of KFC outlets across the UK due to chicken shortages [67932]. The system failure impacted the distribution of food products and packaging to KFC restaurants, highlighting its role in managing orders and deliveries within the food industry.

Sources

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