How is working the McDonald´s Supply Chain?
The management of McDonald´s Supply Chain has to be able to fulfil needs of around 70 million daily customers of a company with 35.000 McDonald´s restaurants. It is necessary to calculate the daily orders well in order to avoid that products run out. Therefore a strict organization on the responsibilities for planning each task and to fulfil the plans are necessary. It has to be taken in mind that source products depend locally. Furthermore the supply chain needs to foresee future demands and possible changes in sales volume.
Every distribution centre supplies between 250 and 700 restaurants, where are handled with daily sales, warehousing, restaurant stocks, transportation, marketing promotions and logistics services. Communication within the suppliers is essentially. Currently McDonald´s has a cooperation with 16 major suppliers.
The majority of the restaurants are organized with maximum three deliveries per week. In most of the cases of McDonald´s with one delivery truck it is possible to stock the whole establishment. Regarding the hours of delivery the times are coordinated in order to avoid interruption of breakfast or lunch services. When the customer sees the truck in the parking, he would feel inconvenient. Once the driver is going to one restaurant, he calls the restaurant to ensure that there are workers available to receive the delivery. This aspect reduces the time that trucks are in the parking lot up to 30%. Furthermore the company changed from roller and stand to delivery carts in order to move from the truck to the restaurant.
Regarding the inventory, this is turned over each four day at a restaurant. Based on the relationship with the suppliers this is possible. There is a large number of direct such as indirect suppliers.
As you have read in this Blog, McDonald´s Supply Chain Management has to conquer several challenges and does this with a lot of success. In the 2013 Gartner Supply Chain Top 25 list, McDonald´s supply chain ranked on number 2.
In the following YouTube video there is talked about the sustainable supply of McDonald´s: