Supply Chain is one of the critical factors for the smooth functioning of any business in the world. When talking about fast food restaurant or business, McDonald’s Supply Chain model is one of the highest precisions. It is this unmatched Supply Chain Structure, which not just ensures on time delivery of raw materials and supplies to McDonalds but also enables it to cut down on its cost and maximize profitability along with maintaining highest quality standards of its products.
From the study done in India, the level of commitment of McDonald’s has been done even before it set up its first restaurant in the country. Most of the cost and resource is use to set up its delivery mechanism. McDonald’s initiative to set up an efficient supply chain and deploy state of art technology changed the entire Indian fast food industry and raised the standards of performance to international levels.
McDonald’s have a large number of direct suppliers companies that make or deliver final products for to the restaurants as well as an even larger number of indirect suppliers companies and farms that grow or process the ingredients that are eventually delivered to the direct suppliers. McDonald’s work closely with direct suppliers to continuously improve the practices that impact the employees, the communities, the environment, own suppliers, and the customers. The Social Accountability program and Environmental Scorecard is a review of adherence to the programs that related to sustainable supply, are included in McDonald’s Supplier Performance Index. It is used as the primary evaluation tool used to evaluate the suppliers overall performance in serving McDonald’s needs.
McDonald’s expected their suppliers to share and apply their vision of sustainable supply to their own suppliers (indirect suppliers). They also ask them to help them understand industry wide sustainability challenges and opportunities related to the ingredients they use to