COBRA Inventory Management System
McDonalds uses an Information system called as COBRA for its inventory management. This is a system specifically developed to suit McDonalds needs. It takes care of inventory levels and procurement. It is an integrated system which is connected with its vendors. It maintains a record of the stock of inventory currently in the McDonalds store. Step 1 : Customer orders are taken in the POS
In this step the customer orders are taken by the cashier and recorded in the POS system. Once the order is placed and then delivered, there are certain raw materials which get consumed in the process. Step 2 : Reduce Inventory consumed from stock
In this step the raw materials which have been consumed, are reduced from the stock in the system. The inventory thus goes down by the amount of raw material which has been consumed. Step 3 : Vendor sees the data in real time
The vendor for McDonalds Vile Parle West is Radhakrishna foods. The vendor is connected directly to the COBRA system. He can see the inventory levels in McDonalds in real time. Step 4 : Vendor dispatches supplies whenever stock reaches a minimum point McDonalds and the vendor have already decided on the levels of inventory to be maintained. Whenever the inventory falls below the specified level, Radhakrishna foods dispatches a predetermined amount of raw materials. This reaches the store and the stock gets replenished. In this way the inventory levels at McDonalds are maintained. This system saves the effort of McDonalds spent on ordering supplies every time. As the systems are connected, the vendor himself can monitor the stocks and deliver the supplies on his own. It also allows McDonalds to maintain just in time inventory. It has helped McDonalds reduce a lot of ordering and inventory carrying cost. Advantages of using COBRA system:
1. The orders are placed online. McDonalds does not need to make a purchase order every time for...