McDonald's supply integration and systems

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McDonald's Inc. supply chain is designed for efficiency. The structure of its supply chain utilizes

current technology, to bring supplies and food ingredients to stores when they need them. At the

same time, it is expected that each store or franchise location will always have the products consumers

want when they want them. Eliminating a distribution center saves time in getting supplies where they

need to go. Less time spent tracking supplies through yet another link in the supply chain means

members of stores and franchises can spend more time focusing on giving customers what they want.

At the same time, items are more likely to arrive fresh. Removing this link in the supply chain reduces

costs for fuel in the shipping process and also reducing carbon emissions.

Eliminating the distribution center is just one way McDonald's considers all stakeholders. It also

Upholds standards by using suppliers who engage in sustainable practices, pay fair wages, and uphold

workplace safety regulations (McDonald's, 2012). More consumers today are watching corporations in

every industry to determine if they are behaving in a manner that is ethical and sustainable. Consumers

expect quality products produced with less waste and with greater consideration for those who are

responsible for making those raw materials and supplies available. In every part of the globe in which

the company operates, its stores and franchises can order supplies from a list of approved suppliers,

through a hub. The online hub, known as E-procurement, is designed to replace the distribution center.

In each location, only a select few members of the organization can access the hub and order supplies.

The suppliers are selected at the corporate level, based on sustainability and other criteria. The

restaurants then focus on doing what they do best, providing the food products customer want in an

efficient and cost effective manner.

The supply chain for McDonald's then begins from the franchise or store, where the order is

placed. The supplier then receives the order, fills the order, and ships the products to the store that

ordered them. However, if service is considered part of the supply chain, than the processing, which

is taking orders and cooking food products requested, is considered a critical part of its supply ...