Report on Supply management and operations of McDonald in California

Company introduction of Supply management and operations of McDonald in California:

McDonald's is a well-known organization and restaurant that offer a large variety of fast food to all its customers all around the world. It was started in 1948 California, by two brothers Maurice and Richard McDonald. They started their business as a hamburger restaurant and then converted it into large set up that offers low-cost food to customers and also self-service facility that attracts many customers, and they also prefer this as compared to other restaurants. So due to high-quality food at low prices its demand among customers increase rapidly and also become famous in the people. Now McDonald produces a huge variety of burgers, sandwiches, shakes, ice creams, and desserts according to demand and requirement of customers. People prefer to buy fast food from McDonald's because its food quality is very high and they also offer the same quality of food all over the world and also provide the food items according to country because some restrictions also implemented on the supply of food according to geographic areas. Their main focus is young and adults who prefer to eat fast food instead of any traditional food item. Also children willing to buy the burger of McDonald's because they are lovers of fast food.

            The business strategy of McDonald uses the strategies of international market expansion and also cost leadership. Within the McDonald’s business strategy a great extent is its franchising and licensing forms of new market entry. The standardization of products and services lies in the business strategy of McDonald's. It offers a huge variety of fast food they provide attraction to the customers. And it also obtains multiple competitive advantages as compared to its competitors in the market. (Dudovskiy, 2016)

Company operations: (operation inside the mac not in public)

 In McDonald's, the collective power toward the common goals includes franchisees, employees working and suppliers that make the organization best leading brand of fast food with service restaurants. McDonald's gives special attention to the demand and requirement of its customers, and this is the actual reason why McDonald's can be found in every part of the world. It is the business strategy of McDonald provide fast food items to customers at low prices and also generates profit by reducing the cost and also spread the business in all parts of the world. In obtains the organization's goals, the operation strategies must be effective. The organization maintains and controls its operations with operational strategies. So according to resources and capabilities of the organization conduct the comprehensive market analysis. Top management develops operational management strategies. In all the branches and franchises these strategies must be implemented. And operational activities control by operational managers. The strategy of the McDonald includes many factors according to requirement of company and also customer demand. Customer satisfaction and customer importance are the major areas of strategy. Due to maximum use of information technology, company also obtains innovative ideas to advance its operational activities. It also starts stock database system that helps to maintain the stock and update according to enter and exit, also avoid extra ordering for the company. For the order the stock, simple and easy method is going to introduce in the organization. The stock system is attached to the sale system and all the product movements according to demand considerable under the instruction of manager. So the operation of McDonald's run in smooth and effective way and also provide high-quality products to all its customers when its operations are working in effective manner. (corporate.mcdonalds.com, 2019)

Company supply chain:

 McDonald's handles a large variety of ingredients, so they operate more than 38000 restaurants in the world. The company makes contract with its supplier to meet the massive requirement of company instead of produce any product within the organization. McDonald three leg stool has three legs that include suppliers, employees, and operators of the company. The different company provides dairy products, produce, fish, poultry, and meat and supply bakery to the company. Almost more than 1% of the population take the food from the McDonalds, and suppliers of McDonald are numerous due to large scale operations of the company.  Its supply chain is complex system of indirect and direct suppliers that know about the efficiency and quality of the product in better way. Direct suppliers help in distributing the restaurants and also coordinate in purchasing. On the other hand the indirect suppliers provide different facilities like lettuce, grow wheat, and also other ingredients according to requirement of the company. Its distribution areas distribute and purchasing the restaurants. Special vehicles equipped with temperature control mechanism also use for product transportation. The company also receives the product according to specified conditions and for finish products, provide processing facilities. The company also explains that its supply chain sustainability gives attention to three areas: economics, environment, and ethics. In its supply chain, McDonald's works to minimize the disruption. Numbers of suppliers are responsible for the source of products according to geographies .it also distributes the responsibility of single suppliers. The raw material input is generic, so it can be obtained from any supplier that can easily deliver the product without any issue. (Ovenden, 2019)

The success of the supply chain of McDonald's applies in long term strategies. it follows the win-win proposition for all the parties and also implements on its employees, its operators, and its supply chain partners. McDonald offers meals to more than 70 million people on daily basis, and it requires consistency related to its ingredients and also its food preparation processes. The strict standard has to follow all the parties that attach to the company. In supply of food, it follows the consistent standards. So the supply chain of the company provides all the products and facilities according to requirement and also determine most effective facilities and services to all branches and franchises according to demand of the customers and also provide high-quality product that can meet the standard of the company in most effective manner. (REKHA KHANDELWAL, 2019).

Supply chain strategy of McDonald in California:

McDonald is the best organization that manage its supply chain in most effective way and also maintain its supply chain strategy according to company’s requirement. For its continued growth and amazing success, the supply chain of the company is largely responsible. All the planning and strategies must be simply staggering according to company’s logistics. McDonald is consider as supply chain giant in the international market. In 1950, McDonald start its franchise operation and every year exponentially grown according to increase in demand. its fast food restaurants are run in the more than 100 countries. The actual reason behind its increasing demand in the market as it offer all the items in all the part of world according to people demand and their taste. The cost effective and dependable efficient supply chain needs all the activities to run its all operation effectively. For their supply need, McDonald need almost 100% outsourcing according to its requirement.

McDonald focus on the vertical integration supply chain because this is the actual responsible for making the McDonald demand at upper level and McDonald perform all the function in most effective manner through contracted procedures they grown their own beef, meat process by own methods, grow its own spices and mix it according to its recipes and also other vegetable and potatoes grown through the contracted procedures and transport all the goods according to their own strategy. This strategy helpful in keeping the cost down and profit ups so company take a great control of its all the supply chain system and also manage the supply chain in most effective manner. Its large volume of buyers also explain that vertical integration supply chain is the best and most suitable option for the company and also give many benefits in the supply of products at all the level. Company use this effective supply chain strategy according to customer requirement and also gives lots of benefits and increases its productivity and profitability in most effective manner.

Supply chain capabilities and practices of McDonald in California:

The supply chain of McDonald explains how the product and its ingredients are transfer and deliver from supplier of company and then move to customers according to their demand. The capabilities and practice of the supply chain also help to explain that what the logistic network of the company is, and explain its supplier management, its inventory management practice, its distribution system, manufacturing, demand management, and many others.

Its inventory management system involve major role of suppliers because their supplier is responsible for all the inventory that required by the company, and they provide all the products and ingredients that need the company, and before time they supply all the products and inventory because company establish strict rule to follow and provide all the material on timely basis. Its distribution system helps the organization to supply all the products and other necessary items in its branches and franchises according to meet the international requirement. It helps to promote the demand and needs of the customer and make its distribution system more strong by obtaining all the elements according to requirement of the customer. (GREGORY, 2017)

 McDonald's has strong relationship with it all suppliers and also develops a long term relationship because numerous suppliers are attaching with the company, so dealing with all suppliers is up to date and according to requirement of the company that can meet the standard of the company without any issue. Their demand management systems promote the demand of the company and also take important steps to fulfill the demand of all the branches and its all franchises. The supply chain strategies must be more strong and important for every organization because it enhances the level of productivity of the organization and also runs its all operations in most effective way. McDonald's has strong capabilities to flow and run its supply chain management and implement the most effective strategies of supply chain to make its organization.  Its supply chain is complex system of indirect and direct suppliers that know about the efficiency and quality of the product in better way. Direct suppliers help in distributing the restaurants and also coordinate in purchasing. On the other hand the indirect suppliers provide different facilities like lettuce, grow wheat, and also other ingredients according to requirement of the company. So they follow the need and requirement of the company and also make the supply chain management system of the McDonald more strong and efficient.

Lean Production at McDonald's

One of the biggest giants in the fast-food industry is McDonald's since the mid-twentieth century. There is a big competition among the fast-food company that has affected every aspect of McDonald's as well as the company has successfully maintained its position in the fast-food market by adopting lean method, and the company is effectively focused on this strategy which affects the supply chain of the company in the positive sense.

Reduction of Waste of McDonald in California

According to the philosophy of lean methodology, it is dealing to instantaneously meet the requirements to maintain the quality of the foods similar to before as well as to reduce the overall waste. So, for handling these things, McDonald's is currently following the whole strategies for dealing with the waste of the sources. The Company has successfully maintained its resources as well as reduce the waste of the resources.

Overproduction of McDonald in California

In the early time of McDonald's, the company has adopted a strategy to reduce the serving time by keeping warm the sandwiches which were produced in the batch as well as keep them in the warming bins. The company did successfully reduce the serving time, but they did increase the waste of food because production in the bulks form was not efficient because there is no guarantee for selling all the sandwiches in a day. The company did adopt a strategy that handled both things. The company successfully reduce the serving time as well as reduce the waste of food by serving patties and salad. When the customers are taking the patties and salad, the chef makes the sandwiches in a short time. The strategy really reduces the waste of food, which affects the supply chain in a positive sense.

Time for waiting of McDonald in California

The company has adopted the latest technology for maintaining its inventory as well as used the technology to generate the receipts by taking orders. It really minimizes the waiting time for the customers as well as it was very helpful for getting more orders. The computer system communicates with production staff of McDonalds, which tells them directly what orders are placed by the customer. Therefore, the whole process takes only three minutes.

Waste of Processing of McDonald in California

The processing waste lies majorly in the company because of the excessing management of all kind of products which are being processed. Furthermore, for the enhancement of the production, the company has introduced the speedy system to assemble the orders. This system really strengthens the production the company as well as it really effectively reduce the overall waste of all products in processing time. Such system is still in the use of the company, which was introduced by McDonald’s brother.

Reference of McDonald in California:

Corporate.mcdonalds.com. (2019). Our Business Model. Retrieved from                                                    https://corporate.mcdonalds.com/corpmcd/about-us/our-business-model.html

Dudovskiy, J. (2016, February 8). McDonalds Business Strategy and Competitive Advantage.                   Retrieved from https://research-methodology.net/mcdonalds-business-strategy/

GREGORY, L. (2017, Feb 5). McDonald’s Operations Management, 10 Decisions, Productivity.             Retrieved from http://panmore.com/mcdonalds-operations-management-10-decisions-       areas-productivity

Kate Vitasek. (2014, July 22). Trust and Collaboration: McDonald’s Supply Chain Strategy. Retrieved from https://www.gscouncil.org/trust-and-collaboration-mcdonalds-supply          -chain-strategy/

Ovenden, J. (2019). McDonald's’ Supply Chain Success Shows The Benefits Of Collaboration.                 Retrieved from https://channels.theinnovationenterprise.com/articles/mcdonalds-supply     -chain-success-shows-the-benefits-of-collaboration

REKHA KHANDELWAL. (2019, nov 13). McDonald’s Supply Chain: A Must-Know fo              r Investors. Retrieved from https://marketrealist.com/2019/11/must-know-mcdonalds    -supply-chain-2/