OPM 300 Module 1
Session Long Project
For the session long project, I will analyze one of the supply chain operations the McDonald's Corporation. I will discuss how the logistic operations enable the same quality in service no matter which restaurant you go to; and how that leads to the business strategy of this company.
Ray Kroc, the founder and owner of McDonald's, once stated once stated that “He wanted to serve burgers, buns, fries and beverages that tasted just the same in Alaska as they did in Alabama.” To achieve this, he chose a unique path: persuading both franchisees and suppliers to buy into his vision, working not for McDonald痴, but for themselves, together with McDonald痴. He promoted the slogan, 的n business for yourself, but not by yourself.His philosophy was based on the simple principle of a 3-legged stool: one leg was McDonald痴, the second, the franchisees, and the third, McDonald痴 suppliers. The stool was only as strong as the 3 legs.
In regards to the McDonald's suppliers, he managed to create the most integrated, efficient and innovative supply system in the food service industry. These supplier relationships have flourished over the decades: in fact, many McDonald痴 suppliers operating today first started business with a handshake from Ray Kroc.
The McDonald痴 supply chain is a complex web of direct and indirect suppliers. They manage this complex system by working with direct suppliers who share their values and vision for sustainable supply. Overall, McDonald痴 and their suppliers are collectively focused on three areas of responsibility: ethics, environment, and economics.
Their vision is a supply chain that profitably yields high-quality, safe products without supply interruption while leveraging their leadership position to create a net benefit by improving ethical, environmental and economic outcomes. When they speak of the ethical responsibility they want to ensure that...
References: 1. The Ray Kroc Story, www.mcdonalds.com http://www.mcdonalds.com/us/en/our_story/our_history/the_ray_kroc_story.html
2. Focusing on the 3E 's: Ethics, Environment and Economics,, www.aboutmcdonalds.com. http://www.aboutmcdonalds.com/mcd/sustainability/our_focus_areas/sustainable_supply_chain.html
3. The Big Idea, McDonald 's Unravels it 's Supply Chain, Pamela Cheema, Logistics Weekly. Jul, 2011, http://logisticsweek.com/feature/2011/07/the-big-idea-mcdonalds-unravels-its-supply-chain/
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