Group 2 McD

Marketing and

Supply chains

Marketing Channel A set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer.

Supply Chain The connected chain of all the business entities, both internal and external to the company, that perform or support the logistics function

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MC’ DONALDS marketing and supply chain

The McDonald’s System – the World’s Best QSR experience

• World Market Leader in the QSR area (Quick Service Restaurant)

• Franchise System (72%)

• System employees: 1.6 million

• Customers Per Day: 47 million

• Corporate Strategy: – QSC&V: Quality, Service, Cleanliness and Value

– Ray Kroc: “None of us is as good as all of us”

– Plan To Win -> Successful business revitalization

– Growth by getting better

Sustainable Supply Chain Vision

• Envision of a supply chain that profitably yields high-quality, safe products without supply interruption while leveraging our leadership position to create a net benefit by improving ethical, environmental and economic outcomes.

Ethical

Environmental

Economic

McDonald’s Supply Chain

The McDonald’s Supply Chain

• Purchasing – “The 3 legged stool”: Corporation – Franchisees –

Suppliers – Exclusive, certified facilities – Handshake agreements, Trust – Long term win-win partnership, risk sharing – Strong focus on quality, product specification and

environmental audits – Decentralized supplier structure, zone consolidation for

multinational suppliers

The McDonald’s Supply Chain

• McDonald’s Supply Chain Challenges – Even stronger focus on freshness and quality – On-going product innovations – Strong customer demand fluctuations based on promotions – Order- and inventory management restaurant – DC – supplier - raw material supplier

Vision of Supply Chain Integration

Two future orientated strategies

McD DC :

integrated

“One-Stop-Shopping“ Lean Logistics Solution

Supply Chain Services for McDonald‘s restaurants

• McDonald's is constantly striving to add value to the firm for their customers

• The firm has created efficiency in getting the products to the customers quickly and as fresh as possible

• Always looking for ways to improve because of the continuous updates on equipment, improvement on serving time thus making McDonald's a more efficient business.

Mc Donald Marketing Channel

• Many of McDonalds restaurants are open 24 hours a day

• So in order to meet demand consistently, Mc D practice a distribution strategy called "intensive distribution", means marking the product available for sale through all possible channels of distribution

• Intensive distribution is stocking the product in as many outlets as possible

Cont..

Cont..

• McDonald's value chain is unique because of the rare need to depend upon other companies for supplies

• The firm owns nearly every portion of the value chain including warehouses, delivery trucks, and the real estate where their restaurants built

• McDonald's established warehouses within a reasonable proximity to all of their restaurants to solve some of the logistical problems it had experienced

• This, along with owning the warehouses allows the restaurants to get all of the needs met in one shipment and not deal with multiple suppliers

Cont..

• The firm's mutual effort with suppliers to develop and improve products and production techniques enables McDonald's to meet the high quality standards

• The elimination of too many intermediaries, has allowed McDonald's to pass that value along to the customer.

• Every dollar spent in getting the goods to the customer causes prices to rise (Ferrel et al., 2005)