SUPPLY CHAIN MANAGEMENT

WHAT IS SUPPLY CHAIN MANAGEMENT?

A supply chain management is the management of collection of steps that a company takes to transform raw components into the final product.

SCM PROCESS:

Retailer

http://www.youtube.com/watch?v=eBlD2N_AwgI

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HISTORY:

The McDonald's concept was introduced in California by Dick and Mac McDonald of Manchester, New Hampshire. It was modified and expanded by their business partner, Ray Kroc, who later bought out the business interests of the McDonald brothers and went on to found McDonald's Corporation.

Ray Kroc

HISTORY:

• McDonald's is the leading global food service retailer with more than 30,000 local restaurants serving 52 million people in more than 120 countries each day.• More than 70% of McDonald's restaurants worldwide are owned and operated by independent local men. • It is one of the world's most well-known and valuable brands and holds a leading share in the globally branded quick service restaurant segment.

Ray Kroc

Mission :

McDonald's mission is to be our customers' favorite place and way to eat with inspired people who delight each customer with unmatched quality, service, cleanliness and value every time.Vision: “To be the best and leading fast food provider around the globe”.

McDonald’s – The Company:

McDonald’s – The Company Owns 41% of the market share in the fast food market.

SLOGAN:- ‘I’m lovin ’ it’ LOGO:-

• McDonald's suppliers play a pivotal role in its success, providing quality products at competitive prices.• Having a clear safety and quality policy in place and connecting all facts of Supply Chain partners regardless of Country Culture Language

Transferring this message to all involved parties (Vendors, Transport companies, Marketing Agencies, Supply Chain departments, Restaurants) around the globe requires an extremely effective and complex safety process. Support and involvement of Senior Management in all phases of Supply Chain is crucial for McDonald.

GLOBAL SUPPLY CHAIN OF McDonald’s:

Ameer Hamza

McDonald’s in Pakistan:

• McDonald's in Pakistan opened its doors in September 1998 at Lahore and presently operating in major cities with a network of many restaurants. • McDonald's Pakistan is doing so well and it also has an good plan to expand in all other cities of Pakistan.• It is rapidly growing with the focus to provide friendly and quick service restaurant experience to customers.

McDonald’s in Pakistan:

• McDonalds located in Pakistan are currently employing about 4,000 Pakistanis.

• Today millions of Pakistanis place their trust in in McDonald’s which provide them with food of a very high standard as well as good service.

OPERATIONS MANAGEMENT STRATIGIES:

• Strategies Operations Management Strategies in McDonald’s are being made by top management.

• These strategies are implemented in all franchises under instructions of top management, which are distributed to all franchises in written form.

• These strategies impact positively and help to achieve the goals.

Umer Naeem

Suppliers Of McDonald’s In Pakistan:

McDonalds have a just-in-time inventory system. Which means that the orders are placed as the raw material comes to near finish. The major suppliers of McDonald’s in Pakistan are as follows:• Dawn Breads for Buns• Choudhary Dairy Limited for dairy products• Walls for Ice Cream• Coca-Cola Ltd. for drinks• Packages for packing

• McDonald's is committed to providing quality products. So it spent a few years setting up a unique Supply Chain, before opening first restaurant in Pakistan.• McDonald's Supply Chain is a network of facilities including - material flow from their “upstream” suppliers transformation of materials into finished products and distribution to downstream customers.• McDonald’s Supply Chain commenced operations in Pakistan in October 1996. "We had to ensure that we had the back-end linked up to the farm level for delivery commitment”.• McDonald’s uses the latest state-of-the-art food processing technology.

Supply Chain Management at McDonalds:

• McDonald's has always been committed to sourcing its requirements from local suppliers and farmers. This assurance is rooted in the philosophy of company's founder, Ray Kroc.• It has carefully identified local Pakistani businesses that take pride in satisfying customers by presenting them with the highest quality products.• Even the restaurants are constructed using local architects, contractors, labor and materials.• The relationship between McDonald's and its Pakistan suppliers is mutually beneficial.

Local Sourcing:

• As McDonald's expands in Pakistan, the supplier gets the opportunity to expand his business, have access to the latest in food technology.

• McDonald's Pakistan's local suppliers provide them with the highest quality, freshest ingredients.

• Complete adherence to the Pakistan Government regulations on food, health and hygiene is ensured, while maintaining the recognized international standards.

• Cleaning standards ensure that all tables, chairs and trays are sanitized several times.

• Cleanliness extends beyond the lobby and kitchen to even the pavement areas outside the restaurant.

International Standards:

Muhammad Tahir

SUPPLIERS QUALITY ASSURANCE:

• High Quality Baked Buns:McDonald’s source buns from Dawn Breads who use only high quality wheat. All the buns are subject to quality and safety controls all through the production process.

• Crunchy Farm-fresh vegetables:McDonald's select the best of the best vegetables that are continually monitored for freshness, high nutrients and safety, to maintain top quality standards. It uses local suppliers to ensure that the freshness and high quality are delivered to customers in all products.

• Fries-Naturally Crisp:McDonald's fries are crispy and far from the ordinary. The secret lies in the harvesting of high quality potatoes that come from trusted suppliers. The potatoes are then cooked using only 100% vegetable oil with no fats or flavours and only some salt is added after cooking.

SUPPLIERS QUALITY ASSURANCE:

• High Energy Wholesome dairies:To maintain the high quality standards of the world famous McDonald’s cheese, shakes, Mcflurry and Sundaes, it ensure that the fresh milk comes from the approved local suppliers.

• All Safe’n Sound:HACCP (Hazard Analysis & Critical Control Point) is applied system to keep food safety absolute from point zero till the point it is served to customers.

Freshness:

McDonalds have even stronger focus on freshness and quality. Because of the nature of the product they are offering the focus on quality is a key factor in the success of their business. So the supply chain plays an important role in their business because without the proper supply chain they can’t deliver the fresh items required in making the items offered at McDonalds.

McDonald’s Supply Chain Challenges:

Innovation:

On-going product innovations are also a big challenge for the supply chain of McDonald. The continue innovation of the products at McDonald require them to continuously alter the supply chain and manage it accordingly. With the ongoing introduction of new products like new burgers require them to continuously update the supply chain which requires supply chain management to be much more extensively used.

McDonald’s Supply Chain Challenges: