Name: Syed Ahmad Ali Matric Number: G1416153 Assignment No. 2 Topic: McDonald’s Pakistan Submitted To: Prof. Nur Anisah Abdullah Reason behind Choosing this Organization: Being new to Malaysia with less than a couple of months, I didn’t experience any opportunity to explore hotels, famous restaurants or popular places. I am not habitual of junk food either and prefer local Pakistani or Chinese food most of the times. With such attribution, I was amazed and delighted with the service quality of McDonald’s Pakistan where I used to go once or twice a month with my colleagues. I probe into the matter and finally came to a conclusion that it’s their ongoing improved and consistent supply chain management system that provides them a competitive edge besides facing a neck to neck competition with KFC Pakistan and now with Burger King in the huddle. Brief Introduction: Started with only a Tea Boy then to a milk shake maker in 1955, Ray Kroc founded the McDonalds Corporation and opened the first restaurant in Des Plaines, Illinois in 1961. By then, McDonalds grew into the largest restaurant organization in the world. Today, the organization runs more than 34,000 restaurants serving 69 million customers each day in over 119 countries. McDonald’s supply chain ranked No. 2 in the 2013 Gartner Supply Chain Top 25 list. McDonald’s also ranked among Gartner’s top 10 in 2012 and 2011 and was No. 11 in 2010. Effectiveness: An effective supply chain management strategy is one reason the company evolved from its start in 1955 to a global institution. Known for it’s hamburgers, the organization now ensures a staggering amount of items from beef and chicken burgers to a restaurant’s operating supplies including, hot chocolates, beverages, ice cream, fries and many more. To add to it’s location, McDonald’s supply chain also must fill the company’s desire to customize menus according to preferences of local customers and makes a huge research and development before launching a new franchise. Successful Supply Chain Advantages: The company owns no factories or distribution centers so communication with suppliers is a necessity. The company constantly tracks everything from daily point-of-sale data for each item, restaurant stock levels and its marketing plans for promotional items or local menus to distribution center shipments and inventories. The company handles 16 major suppliers. One of the advantage the organization has is the anticipation of future demand. While knowing that Pakistan has a changing weather, the company has a competitive edge to forecast and plan the upcoming demand that ultimately helps in serving it’s customer better than others. Similarly, one of the advantage McDonald’s possess over its competitors is mechanizing the food. Use of machinery is considered more hygienic and takes less time to operate. So technological advancement and time processing is one of the edge that uplifts the company. Pakistan is one of the most populous countries of the world and due to overly crowded roads and traffic it is difficult to maintain a service standard time especially the drive-thru time. McDonald’s drive-thru time in Pakistan is 90 seconds. This reflects the speed of an item to be served to a customer or how much a customer has to wait for his menu to be delivered. McDonald’s Supply Chain Methodology – Three E’s Supply Chain Vision: One of the most important factor of McDonald’ s supply chain is it’s Three E’s vision that is ultimately a key element of it’s success over the years. The three three E’s of this vision are; 1- Ehical Responsibility 2- Environmental Responsibility 3- Economic Responsibility McDonal’s Pakistan has its arrangements with some of the most trusted suppliers i.e. Lopez Foods, Keystone Foods, 100 circle farms and Gavina Gourmet Coffee with two or three deliveries per week, with one delivery truck able to completely stock the establishment. Delivery times are coordinated to not interrupt breakfast or lunch service because customers may not pull in if they see the truck in the parking lot. Drivers call in route to be sure the restaurant has workers there to take delivery when it arrives, reducing the time trucks are in the parking lot by up to 30%. The company also switched from roller and stand to delivery carts that move from the truck into the restaurant. Besides, a huge amount of employees’ turnover McDonald’s manages not only to strive the competition but to have a competitive edge over all other burger chains including KFC, Burger King and local companies. This is because of a strong supply chain program that efficiently and effectively produces results.
Posted on: Mon, 27 Oct 2014 15:44:20 +0000
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