McDonald's Supply Chain Management

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McDonald’s Supply Chain

Supply chain management, or SCM, is concerned with managing the inputs of goods or services for final users from acquiring the raw materials through the end of the product’s useful life. The inputs of goods or services include a wide variety of activities not only in a single department in a company but also from different departments and outside the company; they are cross-functional activities that contain increasingly complex networks supply chains in the business environment.

Supply chains most often illustrate where different product components are sourced. In the fast food industry supply chain, there are two major components. Initially, there are the raw materials that are primary in producing the end product. But more significantly, the value-added component of the supply chain is derived from the services supplied by quick, convenient, and quality establishments.

In the industry supply chain, there are goods (food), suppliers, distributors, establishments, and lastly, the consumers. A very important characteristic of the industry supply chain is that it is consumer-driven. This is because the consumer has a wide array of fast-food options to choose from. The main component of many fast-food successes is its marketing of the products to the consumers, which is used to add value. The main goal of many marketing departments in the industry is to make the consumer drive the extra couple blocks past their competitor to eat at their establishment.

McDonald’s supply chain, for example, has a number of suppliers that have acquired the raw material and prepared it for use. Creating a product out of the raw material, the suppliers range from Tyson Foods, Coca Cola, J.R. Simplot Co., Quaker Oats, Kraft, Keebler, Carnation, to Keystone Foods. They supply to the distribution centers, there are about forty of them in the United States. These distribution centers include everything from food products to cleaning supplies...
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