Mcdonalds Procurement Stategy
McDonald’s ® Procurement Strategy
Richard Bender, Desmond Elmes, Michael Henderson, Tony Stewart
Global Sourcing and Procurement
ISCOM/473
Professor David Underwood
October 15, 2012
McDonald’s Procurement Strategy
Since opening in 1955 McDonald’s is one of the most successful fast food chains in the world. McDonald’s has over 33,000 fast food restaurants in 119 countries. With locations around the globe, McDonald’s continues to manage a strong supply chain. “We work hard, together with our suppliers and independent restaurant franchisees, to strive toward a sustainable future – for our company and the communities in which we operate,” (McDonalds, 2012). McDonald’s suppliers must meet high quality standards to operate within the supply chain. These expectations will influence and impact procurement strategies, policies, and procedures – domestically and internationally.
Expectations
Expectations both domestic and globally are a focus for McDonalds, if the products are not there for the consumer they can lose faith in the company. The Procurement department must be ready for all unforeseen problems and utilize all any dependable resources that can keep up with the demand of all of the locations supplied. Rarely will a franchise location such as McDonalds fail, this is most impart to customer satisfaction and product recognition. If the customer can rely on a location to provide the service and products they advertise at the price they want to pay the location will rarely fail as long as they follow the policies and management expectations of McDonalds. Maintaining cost focuses on sales and procurement to supply the products needed for each location at the agreed upon price to regulate any pricing fluctuations that can happen with any commodity resilient company. Holding contract negotiations long term can reduce or eliminate the volatility of cost fluctuations or require the supplier to absorb the ebb and flow of the
Richard Bender, Desmond Elmes, Michael Henderson, Tony Stewart
Global Sourcing and Procurement
ISCOM/473
Professor David Underwood
October 15, 2012
McDonald’s Procurement Strategy
Since opening in 1955 McDonald’s is one of the most successful fast food chains in the world. McDonald’s has over 33,000 fast food restaurants in 119 countries. With locations around the globe, McDonald’s continues to manage a strong supply chain. “We work hard, together with our suppliers and independent restaurant franchisees, to strive toward a sustainable future – for our company and the communities in which we operate,” (McDonalds, 2012). McDonald’s suppliers must meet high quality standards to operate within the supply chain. These expectations will influence and impact procurement strategies, policies, and procedures – domestically and internationally.
Expectations
Expectations both domestic and globally are a focus for McDonalds, if the products are not there for the consumer they can lose faith in the company. The Procurement department must be ready for all unforeseen problems and utilize all any dependable resources that can keep up with the demand of all of the locations supplied. Rarely will a franchise location such as McDonalds fail, this is most impart to customer satisfaction and product recognition. If the customer can rely on a location to provide the service and products they advertise at the price they want to pay the location will rarely fail as long as they follow the policies and management expectations of McDonalds. Maintaining cost focuses on sales and procurement to supply the products needed for each location at the agreed upon price to regulate any pricing fluctuations that can happen with any commodity resilient company. Holding contract negotiations long term can reduce or eliminate the volatility of cost fluctuations or require the supplier to absorb the ebb and flow of the
References: McDonald’s, (2006). 2006 Worldwide corporate responsibility report. Retrieved October 12, 2012 from www.McDonald’s.com McDonald’s, (2012). Getting to know us. Retrieved October 12, 2012 from http://www.aboutmcdonalds.com/mcd/our_company.html