McDonald’s Logistics

McDonald’s is a popular corporation famous for the supply of fast food products all over the world. The business has been very successful and enjoyed serving over 70 million customers with its products globally (McDonald, 2011). The success depends on the exceptional logistics organizations that sustain the supply chain. Because of its exemplary performance in the market, it has managed to beat all its competitors and drastically open branches in several countries. Although some catering enterprises have tried their luck in this kind of business, they have failed terribly. Therefore, people have made a conclusion that competition also requires excellent logistics to be in place. In order to scale-up the expansion process, the supply chain strategy must also be put into consideration. Sustainability encompasses maintaining operations as well as meeting the needs of all the customers (Heizer & Render, 2014). In this case, it becomes simple to attract new clients into the business for products and services. It means that other branches elsewhere must replicate the good work initiated at the headquarters. In order to achieve this goal, a constant supplier should be identified and become a part of the chain.

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McDonald’s has maintained some performance objectives that enable it to retain a competitive edge at all times. Quality of the products improves the customer’s confidence increasing the general sales. In order to meet this requirement, the firm has a responsibility in ensuring that right things take place at the right time. With good quality, the cost of production decreases and this contributes to good profits. The company imposes strict standards on the materials they get from suppliers. The level of tidiness and cleanliness in the stores is another area that McDonalds pays much attention to. Most customers would prefer clean and comfortable environments to take their meals. Food can act as a route for infectious microbes to the human bodies especially if made in filthy surroundings. Proper planning is another way of performing things rapidly. Punctuality is a trait that most people would not take for granted. There are no delays in serving customers. The staffs are committed to making sure that clients do not raise complaints about their services. Flexibility portrayed in various seasons has been advantageous to the corporation. For instance, during festive seasons, they come up with new meals to satisfy the customers.

The cold chain logistics that supplier HAVI uses to preserve the materials has taken a center stage in minimizing wastage. Based on science and technology, good preservation measures maintain the good quality of products. In this case, the system has to be monitored all the time to avoid breakdowns that may lead to food spoilage. This system requires lots of investments to make it operational (Heizer & Render, 2014). Additionally, modern technology may also play a role in ensuring that goods get delivered in proper conditions. If a mistake happens in this structure, several goods will have to be discarded. The firm may register great losses on such accounts. Because the goods have to be moved from one location to other destinations for distribution, the freezers and refrigerators help in controlling the optimum temperatures for the products. The partnership with good firms is another milestone that enables the fast food dealer to maintain good business. Other technologies that have gained popularity in the transportation sector such as GPS are applied in the chain. In this way, the process of transportation does not fail.

Moreover, wastages also occur in a warehouse. The distribution center can result into extreme losses if proper ways of storing goods are not put into consideration. McDonald’s warehouse has a number of gadgets that assist in minimizing such issues. In order to deal with wastages, the temperatures get controlled according to the type of product in the freezer. Whenever a new market is found elsewhere, HAVI follows to construct logistics center. Connecting storage and the transport system is handling of the products. It involves packing as well as unloading of the products (McDonald, 2011). The fresh products are taken to the shelves. The loaders make use of trays to avoid getting into direct contact with the foods. Some food must remain in the same temperatures during the process of unloading. In this case, there are small freezers designed to help in keeping the temperatures.

The improved technology that managers apply in ordering the process is also part of this system. The procedure requires control and accountability to ensure a smooth flow of goods on a daily basis. In order to curb the losses and carelessness, there is software that facilitates this whole process. The program, known as weblog, assists in adjusting the proposals. Since it is automatic, the managers must understand how to operate the software. It also helps in keeping clear records and retrieving them when need arises. The use of such technological innovations has reduced the overall cost of production. It is because McDonald’s does not have to hire extra staff to handle the inventory stock. The cost-effectiveness of such programs requires that large stocks have to be run through the system. The stock management is a process that needs attention and concentration to avoid errors that may cost the whole company. In this corporation, the stock managers use control systems to ascertain that raw materials are available (Ehrmann et al., 2013). Data entry is another part that can mess up everything if care is not exercised. In order to counter such issues, the managers consider accuracy while keying in the stock. They have to cross-check to confirm that no mistakes are made.

Communication is very critical in any form of trade. The logistics technology will fail if the channels of passing information are not working effectively. In cases where new stores are established, the communication network has to be installed to enhance interaction between the stakeholders. It is through such interactions that new ideas can be shared. Monitoring of the transportation process will work effectively if measures to control it are in place. For example, if a driver is on the way, he must call his destination to get other workers ready to unload the truck immediately when he arrives. Customers with issues may also air their complaints to the management. Subsequently, the management can take the necessary steps to avert problems before they get out of hand.

In general, McDonald’s has tried to integrate these systems into the enterprise to keep its popularity worldwide. It plans with its distributors and suppliers at all stages to sustain the business. By putting the supply chain in order, it has kept its good reputation amongst customers. When all the necessities are turned into serious business, other competitors find it difficult to penetrate the market. It enhances the expansion and promotes sales. The interaction between the workers and the customers can change the overall performance of the enterprise. Preservation of food appropriately has helped this firm to maintain good quality of products. Fast food is perishable and requires proper storage under certain temperatures. Failure to pay attention to such issues will result into losses in the investment (McDonald, 2011). The devices involved in the preservation process must also be regulated. Stock keeping is another means of minimizing wastage. McDonald’s attempts to apply the modern technology in handling the food to avoid losses that may result into the collapse of the whole business. A supply chain is a critical part of the company’s operations at all levels.

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