Mcdonalds Procurement Stategy

961 Words Oct 16th, 2012 4 Pages
McDonald’s ® Procurement Strategy

Richard Bender, Desmond Elmes, Michael Henderson, Tony Stewart
Global Sourcing and Procurement
Professor David Underwood
October 15, 2012

McDonald’s Procurement Strategy

Since opening in 1955 McDonald’s is one of the most successful fast food chains in the world. McDonald’s has over 33,000 fast food restaurants in 119 countries. With locations around the globe, McDonald’s continues to manage a strong supply chain. “We work hard, together with our suppliers and independent restaurant franchisees, to strive toward a sustainable future – for our company and the communities in which we operate,” (McDonalds, 2012). McDonald’s suppliers must meet high quality standards to operate
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One of the integral items in McDonald’s quality expectations is quality of beef. Not only in the quality of the meet but also in the fair treatments of animals as well. According to McDonald’s, “We firmly believe that proper animal handling practices are an integral part of an overall quality assurance program and align our purchasing strategy with our commitment to animal welfare,” (pg. 37, 2006). To maintain this expectation, McDonald’s will audit the suppliers on a regular basis using outside auditors as well as McDonald’s staff. Once of McDonald’s goals work with supplies to develop systems that will ensure that suppliers are able perform to the proper expectation level. McDonald’s employs quality assurance directors in every region to ensure that expectations are met in areas of procurement to include food quality and purchasing initiatives. Through its purchasing power, McDonald’s can implement quality standards that suppliers must adhere to. McDonald’s rewards suppliers for improving performance. These improvements them spread through the supply chain from supplier to supplier and increase the overall quality of the supply chain. McDonald’s not only has high expectation in its beef and chicken but also in its produce as well. To raise expectations for farmers in the supply chain, McDonald’s implemented a Socially Accountable Farm Employers (SAFE) program. Produce suppliers must obtain certification under

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