In this week’s Monday Minutes, read up on the day KFC had no chicken, the $6B healthcare AI industry, and Costco’s growing eCommerce business.
The Day KFC Ran Out Of Chicken
Last month in the United Kingdom, nearly all of the country’s KFC stores shut down. A breakdown in KFC’s supply chain resulted in a chicken shortage at the global chain famous for its fried chicken. The incident created massive problems for KFC as they struggled to resupply chicken to over 900 of their UK locations and manage the public’s reaction on social media. Here are three key learnings companies should take away from this situation:
- Logistics should be prioritized and seen as a value-providing service and not purely a cost center.
- Food is challenging. Food companies must focus intensely on ensuring that food is fresh and safe to consume.
- Marketing can be your best ally in damage control situations. KFC won many fans when they acknowledged their mistake through a punny advertisement that resonated well with the public.
The Healthcare Artificial Intelligence Industry Expected To Reach $6B By 2021
There is an increasing trend towards creating solutions to deliver better medical care to patients. Currently, artificial intelligence is leading this drive. Anthem, an insurer, uses artificial intelligence to stop opioid addiction and painkillers abuse. Another prominent company who uses artificial intelligence is Bionik Laboratories, whose robotics products have been used to treat neurological disorders in more than 200 hospitals in over 20 countries. Expect the medical landscape to change rapidly in the next few years thanks to artificial intelligence.
Costco’s Growing eCommerce Business
In Q2 2018, Costco experienced a 28.5% year-over-year increase in eCommerce sales, which were $1.5 billion in the quarter. The growth is primarily attributed to new investments focusing on eCommerce, including the offering of 2-day delivery on non-perishable items on orders over $75 as well as giving store associates tablets to facilitate online orders in over 195 stores. While eCommerce was not a focus area for Costco for a number of years, competitors such as Boxed and Sam’s Club have been finding success in big-box ecommerce, threatening Costco’s position.
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