Mcdonald's Operations and Supply Chain - a Sustainable Edge Essay

2232 WordsMay 4, 20129 Pages
------------------------------------------------- EXECUTIVE SUMARY: ------------------------------------------------- This report will address the constant striving of sustainability throughout the operations and supply chain used by McDonald’s, thus providing a competitive advantage in a dynamic and volatile environment. Consumption at the detriment to the environment - that which was once accepted by society as common practice, has since migrated to greener thinking, urging companies like McDonald’s to implement sustainable practices throughout their operations and supply chains, and working to align business needs to societal and environmental needs. This shift of consumers to go green, has forced McDonald’s to include a sustainable…show more content…
Not only do all suppliers have an industry level certification ensuring food quality and safety (adhering to Hazard Analysis Critical Control Point standards – HACCP), but McDonald’s has also devised its own food safety system and it is the belief of McDonald’s that a supplier’s job does not end when the product leaves their premises, rather it ends only when the customer consumes it. Limited items on the menu helps turn the supply-chain into a streamlined system of operations as sourcing the ingredients becomes easy (Cheema 2011). However the rigidity of their operating and supply chain systems were at one point a limiting factor in its response to change (Rainbird 2004). McDonald’s has since embarked on a journey of change, driving sustainability and realigning its supply chain to what Rainbird (2004) refers to as its demand chain – which is the changing expectations of consumers. McDonald’s has a ‘pull-supply’ chain, whereby the DCs take all restaurant supply orders routing them to the supplier who will only then produce it. The supplier thus maintains barely any extra stocks. Demand forecasts are continuous with three-day to one-week forecasts provided by each restaurant, and DCs having a three-month rolling forecast with its suppliers. It also implements 31Q Long Term planning whereby 3 is for the three years that the fast food chain will continue tracking its plans, 1 represents the forecast of the next year and Q symbolizes the quarterly monitoring of these

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