Strategic Supply Chain Management Practices of McDonalds in UAE - Case Study Example

It is possible if it can identify potential cost reduction opportunities in the supply chain of the company. The opportunities can be identified from inventory levels, quality rejects, reuse, recycling, and customer complaints. 11 3. The supply chain of the company has tried to reduce costs in the procurement process. This has been done by ensuring that the company has a wide range of supplies for the commodity goods. The suppliers compete in terms of quality and price, for this reason, the company is able to buy cheaper products.

The other strategy that the company uses for non-commodity goods is selecting few suppliers and maintaining a long-term relationship. This cuts the cost down because the process of recruiting a supplier for non-commodity goods is very expensive. 13 4. The supply chain management in McDonald's UAE is measured using how efficiently it is using assets at its disposal. This determined using the turnover of assets committed to inventory as shown in the formula below. 13 1. McDonald is a global fast-food company in the food industry.

It was founded in 1954 in Illinois USA and it started opening more branches in United States, Europe, Canada, and South America, and APMEA (Asia Pacific, Middle East, and Africa). Unite the Arab Emirates; UAE is in the middle Ease division. The country is made up of seven states namely; Dubai, Ajman, Abu Dhabi, Ras Al, Fujairah, Khaimah, and Umm Al Quwain. McDonald opened its first store in UAE in 1994. Currently, the company owns more than 110 stores in different areas of the country, all owned by Emiratis and run by Emirates Fast Food Corporation.

Rafic Fakih is a partner in the company and the managing director of the company. (McDonald, 2010). According to the Big MAC Global Index, (2014), McDonald's is the leading fast-food restaurant in the UAE as of the beginning of 2015. 2. Most McDonald’s’ outlets in the UAE are franchised.