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Operations Strategy and Management of McDonalds - Case Study Example

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The paper "Operations Strategy and Management of McDonalds" shows the wide supply chain process and the various techniques and importance of supply chain management for a company and how it helps to increase the revenue and the amount of value added by the supply chain process to the company…
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Operations Strategy and Management of McDonalds
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Download file to see previous pages McDonald's has a huge supply chain network spread globally and the company puts lots of concentration over its supply chain as it is in the food division so maintenance of the quality of the food items and protecting them from getting damaged. The diagram showing the complete supply chain network of the company is been given below (Bass, 2010, pp. 89-96). The flow of information and also the flow of the materials give a clear indication as to how important the supply chain is for the company. The company uses various transport medium like for transporting the materials which are perishable are been transported using cold vans which has freezer facilities which help the company to maintain the quality of the item (Manos and Vincent, 2012, pp. 65-68). Company has looked to get local suppliers for supply of vegetables which can be availed in a fresh way.
It has distributors in the supply chain in every city where all the raw materials come from the various suppliers of vegetables, bread, meats, milk items etc. From these distributors, the materials are been supplied to the various outlets and restaurants using cold vans and trucks. The time limit for every supply of raw materials is 3 days, that is after every 3 days new stock of raw materials are been supplied to the stores and the maximum stock been maintained in the stores are only for 3 days which helps the company to keep the freshness of the product as a result of which the quality of the food item is been maintained in a good way (Wireman, 2004, pp. 113-115). McDonald's looks to maintain a good relationship with the suppliers by providing them good facilities and good knowledge regarding good maintenance of the animals and also gives information to the vegetable suppliers regarding the various methods used for maintaining the quality and freshness of the vegetables. The company maintains a simple policy of one material-one supplier to give the suppliers under control and have good supplier maintenance this also helps the company to build strong and long relationships with all the suppliers (Liker and Meier, 2005, pp. 43-46). ...Download file to see next pagesRead More
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