McDonald’s Corporation: Managing a sustainable supply chain Food safety should always be the top priority. Minimizing cost is important since it is McDonald’s profits that allow them the flexibility to focus on making a more sustainable supply chain. Sustainability helps build consumer trust and brand loyalty there is an economic insensitive for MD to try and be as sustainable as possible with its supply chain. However do to the nature of their purchasing it is within their best interest to make suppliers as sustainable as possible, sustainable in terms of long-term ability of supplier to supply high quality and sustainable within environmental and animal concerns.
MD cannot walk away from their suppliers without feeling big affects. Since they purchase so much from a single supplier, as they can only find certain suppliers capable of meeting their standards and supply the quantities needed. Because of these constraints MD’s commit to sustainability is an important aspect of their supply chain efficiency. Stated in the case was that there was a three legged stool that supported MD, it’s suppliers, it’s workers and it’s consumers. The communication and commit to each other between the three lead to the success of MD. Therefore if it is within the best interest of MD and the desire of the consumer to have sustainability as a priority in supply chain then MD must focus on sustainability.
Due to the incredible global nature of MD, servicing 118 countries the requirements and cultures of each country affect the supply chain. There are region managers which are giving “freedom within a framework” to adjust their supply chains so as to meet local and national cultural practices. However since a large portion of their sources get spread out throughout the world there has to be an overall framework. MD has set up a global framework that AWO’s have to stick it, and create local supply chains that match up and support that global framework.
With the soya incident...
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