Mcdonald's Supply Chain Analysis
Introduction
Ray Kroc founded McDonald’s System, Inc. in 1955, a predecessor of the McDonald’s Corporation, and six years later bought the exclusive rights to the McDonald’s name. By 1958, McDonald’s had sold its 100 millionth hamburger.
McDonald 's is the world’s leading fast-food restaurant that is best known for the sales of burgers, fries and beverages. It is found in 120 countries and territories around the world and serve 68 million customers each day. McDonald 's operates 36,899 restaurants worldwide, employing more than 375,000 people. The company 's success has been as a result of the policy they follow, known as the Quality food; Fast, Friendly Service; Restaurant Cleanliness; and a menu that provides Value (Q.S.C. &V).
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Place (International Distribution and Supply Chain): Although McDonald’s product offerings differ between countries, they operate a standardized global supply chain. This lean operation is 100% outsourced with no back-up system. The chain comprises of two tiers. Tier 2 suppliers are primarily food producers, whilst Tier 1 suppliers are processors. For example, a Tier 2 potato farm supplies a Tier 1 processing firm who turn the potatoes into French-fries and potato wedges. Produce is transported to distribution centers before allocation and delivery to individual restaurants. The success of the supply chain is attributed primarily to their commitment to outsourcing non-core activities to expert firms. McDonald’s supplier terms are rigorous; suppliers are expected to be accountable until the food is consumed and the end customer is satisfied. Legally-signed contracts with suppliers are not used; all deals are made on a handshake because they operate a ‘one supplier - one product’ policy and maintain long-term relationships regardless of the external environmental …show more content…
Process: McDonald’s prepares and serves food rapidly. Strict guidelines and regulations are followed in food preparation to ensure high standards of hygiene and food safety. Customers can usually see the kitchen while being served, allowing transparency, so customers can eat in confidence. Food is mass-cooked and hot-held until service. However, due to the continual stream of customers, it does not deteriorate before consumption. To maintain its foothold as market leader, McDonald’s maintains a high degree of process standardization across all outlets to increase efficiency. This ensures that they have high standards of hygiene and food safety in all
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