PHYSICAL DISTRIBUTION AND LOGISTICS
A company the size of McDonald's requires the value chain to be increasingly important. Not only does McDonald's want to add value for the customers, but also the firm looks for ways to improve the operations that makes McDonald's a more efficient business .McDonald's is constantly striving to add value to the firm for their customers, and in doing so, the firm has created efficiency in getting the products to the customers quickly and as fresh as possible. McDonald's is constantly looking for ways to improve and is successful because of the continuous updates on equipment, improvement on serving time, and in finding more ways than one to satisfy customers. 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 the restaurants built. Restaurant chains encounter many obstacles in maintaining their business, but the most common obstacle is the logistical planning in getting food and supplies. McDonald's established warehouses within a reasonable proximity to all of the restaurant so 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. This, of course, does not eliminate the need for suppliers, but it has eliminated the need to coordinate paper products deliveries with meat deliveries. 6.1 Supply Chain Management -
Another critical strategy was to set up a well-established supply chain in India in order to achieve three objectives:(1) To operation it’s globally practiced QSCV (quality, service, cleanliness, and value)principle;(2) To enjoy flexibility in pricing; and(3) To launch a new product when necessary. To achieve these three objectives, McDonald’s often uses an outsourcing model in all its markets. In some...
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