Case Study Mcdonald's Supply Chain
Question 1
1.1 In my opinion, YES. They’ve kept it as simple as possible.
According to the Operations Management prescribed textbook: “A supply chain is a set of organisations directly linked by upstream supply side and downstream, demand side, flow of products, services, finances and information from a supplier to a customer, and finally the consumer or end-user.”
Supply side – tier 1 (process products) & tier 2 suppliers (growers & processors), with each supplier providing a certain product in the multi-layered supply chain.
Consumer – 650 000 customers daily (meeting the demand) is evident that McDonalds’ supply chain in India is working well. Over and above McDonalds did research in India taking into consideration the cultural and religious
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According to the case study: [“The restaurant issues orders to the DC which, in turn, routes the order to the supplier, who then produces. The concept is also known as ‘made to order’.”]¹…
The limitations of made-to-order: o If the ERP (enterprise resource planning) system is not resilient and intelligent enough to link between sales order module and manufacturing process module, then it would not be able to transfer sales into production orders thus making it difficult to trace production sales back to sales orders. o Any inflexibility in the made-to-order strategy can be detrimental to the organization as it needs to satisfy that unique desire of the customer (i.e. a high degree of flexibility is required) – an extremely flexible processing of orders in order to meet irregular sales burdens. o Since it is prohibitive to have everything in store due to high cost-factor, it would be advisable for the purchasing department to have information readily at hand to make just-in-time delivery should a preferred supplier be unable to meet its delivery (i.e. have an alternative supplier to do the delivery
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