Mcdonalds Supply Chain Management for Fast Foods- myassignmenthelp

Question: Discuss about theMcdonalds Supply Chain Management for Fast Foods. Answer: Introduction McDonald according to (Jacobs, Chase Lummus, 2014, p 533-534) has one of the largest supply chains since it serves millions of customers across the world in their outlets. The company is known for the supply of fast foods especially hamburgers to almost 36000 outlets in 119 countries every day. The company uses a horizontal supply chain system which contains involving of suppliers in their activities which creates a win-win situation. The company always comes up with different types of food to add on their menu such as salads and smoothies to maintain its sustainability and customer satisfaction worldwide. To add on that, operations in the restaurant can be operated by affiliates, the corporate itself or franchisee and here is where the companys revenue is generated from. McDonalds supply chain components Plan McDonald can plan so well for the materials that is needed in the processing of foods. The company delegated material management to distribution centers in that one center should be able to plan for materials that will be used by many outlets; this promotes commitment and a reduction in cost (Mangala Lalwani, 2016). The company also has first tier and second tier suppliers. First tier suppliers are those that supply products that are already processed such as chicken to the distribution centers while second tier suppliers are those that transport the goods from the distribution centers to the company as they are ordered. Competencies of McDonald Technology and innovation The company partnered with a company that promoted business related to the internet. eMac digital company helped the company create a good platform for advertising their products as well as communication between the company and the outlets was also enhanced. E-procurement as advised by (Zabeen, Wui Lu, 2016, p 60-80) was also introduced and it helped involve suppliers in the supply chain. People from all restaurants can place orders from suppliers quickly and this has totally cut down the labor costs making McDonald very competent. Relationship with suppliers Macdonald has made sure it has good supplier relationship. It has a system that promotes win-win situation in that both the suppliers and the company can succeed all together. This system has contributed a lot to the companys supply chain. Material management The company delegated material management to the distribution centers and this has been very effective. The distribution centers place orders for materials which when brought there they are transferred to the company for processing. This has promoted commitment by the distribution centers and effective material management. Comments on the competencies of the company Macdonald uses the horizontal supply chain management mainly. The company has been able to maintain a close relationship with its suppliers and sharing of information using new forms of technology. If there is any development of innovation, technology or new product design, the company communicates to everyone that is involved in the supply chain. The effective material management as recommended by (Stadtler, 2015, p 3-28) is done by distribution centers in the company to ensure zero waste has also made it efficient. References Jacobs, F.R., Chase, R.B. and Lummus, R.R., 2014. Operations and supply chain management (pp. 533-535). New York, NY: McGraw-Hill/Irwin. Mangan, J., Lalwani, C. and Lalwani, C.L., 2016. Global logistics and supply chain management. John Wiley Sons. Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and advanced planning (pp. 3-28). Springer, Berlin, Heidelberg. Zabeen, S., Wei, J. and Lu, X., 2016. Development of E-business solutions for fast food restaurants. International Journal of Services and Standards, 11(1), pp.60-80.