Figure: Logistic Framework
The figure above shows the logistic process how it works from raw material to end user. Logistics is one of the main functions within a company. Logistics is the management of the flow of goods between the point of origin and the point of destination in order to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and often security. Inbound logistics is one of the primary processes and it concentrates on purchasing and arranging inbound movement of materials, parts and finished inventory from suppliers to manufacturing or assembly plants, warehouses or retail stores where as outbound logistics is the process related to the storage and movement of the final product and the related information flows from the end of the production line to the end user. Firstly, the process starts with the procurement activity which is the process of selecting the best supplier who provide the higher quality of raw material, components, packaging items, product sourcing, and bought in parts at the lowest price to support the company’s operations. McDonald is not just ensures on time delivery of raw materials but also enables it to cut down on its cost and maximize profitability along with maintaining highest quality standards of its products. Then, the manufacturer will process the raw material such as beef into hamburger meats. This involves the production process and work in process. Thus, the McDonald’s manufacturer must ensure that the process work effectively in order to meet the standards of performance. Secondly, it comes to the packaging process McDonald will box all the hamburger meats into a separately boxes to maintain the quality of meat. In the packaging process, the boxes will be labeled with the expiry date and the paper use to wrap the hamburger also be labeled with the nutritious table. Thirdly, the finished products will be sent to the warehouse. They usually have loading docks to load and unload goods from trucks. Sometimes warehouses are designed for the loading and unloading of goods directly from railways, airports, or seaports. McDonald stored goods that included raw materials, packing materials, and finished goods. Subsequently, the depot and distribution centre collect the products from the warehouse. The distribution centre for U.S is located in Florida, California, New York and etc. For India, the latest distribution centre is located in Kolkata. For Malaysia the distribution centre is located in Kuala Lumpur. The retailers (McDonald’s outlet manager) will order stocks based on the demand in the market. All products delivered to the restaurant are inspected routinely before acceptance. Retailers must ensure that the services are delivered in a consistent way to increase customers’ satisfaction and create loyalties. Lastly, customer tends to choose McDonald because of its quality and performance. Therefore, the retailers should always treat each customer like a valued guest such as greet customer courteously, present orders as fast as possible and make sure every customer is taken care of before moving to the next one. Actually, the information flow also plays a very important role in the logistical systems. It facilitates coordination of planning and controls the day-to-day operations. The accuracy of the information plays a vital role to ensure that McDonald’s effort involved in the logistical system would not be misdirected and wasted in term of money, time, and resources.
Current logistic process of McDonald
McDonald has implemented few strategies to improve current logistic process. The first strategy is McDonald using successful e-procurement system to support the supply chain of management of McDonald....