 The role of Logistics in Mc Donald’s

McDonald’s is a popular corporation or company famous for the supply or providing of fast-food products all over

the world. The business has been very successful and enjoyed serving millions of customers with its products

globally. The success depends on the exceptional logistics organizations that sustain the supply chain. But what

makes McDonald’s logistics good?

Within its logistical systems, McDonald's employs quality management. The logistics system starts with the raw

material producers. This covers food producers, paper product producers, and technology device and software

producers for McDonald's. Materials are ordered from the producers through a common ordering system and

delivered directly to each establishment. Several logistics activities are the responsibility of the provider. The most

important are warehousing, shipping, and delivery. When it comes to bringing goods to restaurants, fresh or in

good condition, and ready to use for serving customers, the company works closely with McDonald's and knows

the brand's ideals.

McDonald's also employs 3PL Strategy, or third-party logistics providers like Martin Brower, who are in charge of

carrying out supply chain management decisions. The corporation represents thousands of restaurants worldwide,

with 80 percent of them being franchises. The board of directors decided to support these franchises and ensure

that they are supplied correctly. To accomplish so, they constructed shorter supply chains that are easier to

manage and more trustworthy. This also entails a high level of supply and demand consistency, with the supply

precisely meeting the needs of the clients. To accomplish so, fresh, and frozen products are delivered to each

restaurant 2.5 times per week on average.

McDonald's shipping and warehousing are closely monitored, and the warehouse is equipped with a variety of

devices that help to prevent spoilage. Temperatures are adjusted according to the type of product in the freezer to

prevent spoiling. Fresh products are delivered to the shelves in the company's other stores and warehouse

facility. To avoid coming into direct touch with the goods, the loaders use trays. During the unloading process,

some foods must be kept at the same temperature. Small freezers are used in this situation to help maintain the

temperatures consistent.

In conclusion McDonald's is more concerned with results than with transactions. In the register, customers are not

considered sales. They are regarded as critical contributors to the organization's success. Even if the interactions
are short, the corporation appreciates its consumers and relationships. In the same way, the company appreciates

its connections with its suppliers. Suppliers are more than just a means to an end. Logistics is seen as a critical

part of operations.

 Advantage and disadvantage of logistics function in its supply

chain

Advantage

 The logistics system starts with the raw material producers.

 Logistics activities are the responsibility of the provider.

 Bringing goods to restaurants, fresh or in good condition.

 Fresh products are delivered to the shelves in the company's other stores and warehouse facility.

 Materials are ordered from the producers and delivered directly to each establishment.

 Reduce spoilage of raw materials" because of strictly monitoring the temperature of the freezer according

to the product stored in it.

 Easy to manage and trustworthy because they constructed smaller supply chain.

Disadvantage

 Deliveries sometimes takes time and results waiting until the breakfast and lunch times are over.

 The firm may experience loses in their accounts if mistakes happened during the process of supply chain.

 The distribution center can result into extreme losses if proper ways of storing goods are not put into

consideration.

 Errors may occur at the company if the stock management doesn’t given much attention and concentration

that needed.

 The logistics technology will fail if the channels of passing information are not working effectively.

 Actions to take to improve the logistic function in the establishment

present today. it is hard to point the actions needed to improve their logistic functions due to they already

have specific teams for to identify and take action on any issues may or already occurs. Based on the

disadvantage provided, there are some points that may help mitigate the shortcomings but with

corresponding cost on their side.

1. Delivery Issue - Adding new Warehouse site to minimize long distance and heavy traffic flow during

deliveries

2. Mistakes during supply chain procedure - Create and develop user friendly web application in ordering

and releasing orders of the stores. In this way they can minimize the foreseen issue of having mistaken

in process of supply chain. Another is having a 2-way validation and confirmation on ordering and

receiving, this is also to minimize mistakes in encoding items.

3. Distribution Center Issue - Standardizing all the process and making it a rule in every warehouse that

is being manage by Warehouse Manager and being supervise thoroughly.

4. Same answer with 3 5. Data Management - One correct answer or improvement is to have cloud base

servers, the difference between on-premise servers with Cloud Servers are, once on-premise servers

are that when it goes down the whole data will be compromise and will take some time to fix as it is

being check physically while Cloud Servers are servers where its data are being handled by big

companies and it is their job to have it checked and making sure data are protected and easily

accessible by its respondents. The Idea is not bad but with corresponding cost as well.
Reference:

https://thesisleader.com/essays/mcdonalds-logistics/

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