Managing McDonald’s value chain requires filling the needs of a corporation with 35,000 restaurants that serve 70 million customers a day in 119 countries along with meeting the company’s goal of never being out of an item a customer orders.
An effective value chain management strategy is one reason the company evolved from its start in 1955 to a global institution. In addition to ensuring a staggering amount of products, McDonald’s value chain also must fill the company’s desire to customize menus according to preferences of local customers and source products locally.
The best way to analyse the complete McDonald’s value chain is the Michael Porter’s framework, focusing the attention on the Operations …show more content…
It follows that McDonald’s passes directly the value to the customer.
But the secret of their supply chain is the Just-In-Time order and delivery, which is aimed to meet demand instantly, with perfect quality and no waste. This system means simplification: it reduces costs and delivers only the necessary quantity of products at the right quality, at the right time and place, while using a minimum amount of facilities, equipment, materials and human resources.
McDonald’s also purchases raw vegetables and other raw materials from its fixed, pre-defined suppliers only, like Keepak that supplies all the beef necessary in Ireland or Coca-Cola, the only Soft drinks supplier, which is also its ally. It ensure that its products are top of quality and environmental friendly. In fact in the four big markets of McDonald's Europe about 89% of the packaging is made from renewable resources. Recycled paper and virgin fibres from certified sustainable forestry sources represent around 55% and 69% respectively of the renewable resources used.
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In some chains, managers track the restaurants’ inventories of food, wrappers, cups, and other necessary items. They often order everything the restaurant needs from the distribution centre, which ships it to them. In other chains, it is automated, which means, a computer keeps track of what the restaurants have and should have on hand, or the distribution centre ships the necessary items on a regular schedule instead of waiting a request from the restaurant. The next step takes into consideration the cooking of this particular material and this then moves forward into the process of making this into something that can be eaten: the process is perfumed by the various machines that have been installed inside the restaurant. In McDonald’s restaurants also layout designing is a very important operation. A proper layout of the equipment in the kitchen is very essential to ensure preparation of quality food in less time. It also designs layout of the kitchens in such a way that needs of supervision is minimised and at the same time keeping in mind the health and safety issues. The next step is the orders taken from the customers. McDonald’s staff is provided with wireless headsets, that let the employees work faster, more safety and hands-free. They also consider the priority of the orders as per the time of the