McDonalds Warehouse services
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Does McDonald's warehouse/store its resources and products efficiently? How are their services are retained and the challenges of not being able to "warehouse" services? How does McDonald's use IT to be more effective and efficient in its logistical operations? Give specific examples. (5 pages)
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Solution Summary
The challenges for McDonald's warehouses logistical operations are provided.
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Warehouse and Supply Chain Distribution
McDonald's supply chain includes direct and indirect suppliers. The company aims to achieve
increasing sustainability within its supply chain and within its entire operation. Distribution centers are
utilized to coordinate supplies such as those that must be kept refrigeration with paper products, so
orders can arrive together at various store and franchise locations. To achieve a more efficient
distribution process, the organization began experimenting with multiple temperature zone trucks for
movement of supplies from distribution centers to restaurants (Cheema, 2011). This new method of
distribution saves on fossil fuel, supporting the organization's plan to increase sustainability in
operations. At the same time, it improves efficiency, so restaurants have all the supplies they need in
one order, within days to a week of ordering them from the online hub.
McDonald's does not own any of its supply chain. The notion that outsourcing activities the
organization does not specialize in helps maintain the desired level of efficiency (Cheema, 2011).
However, all of the warehouse activities are expected to maintain a level of efficiency and to adhere to
the company's sustainability practices. For instance plastic pallets used for shipping bread products are
sent back to the bakery when they have been used.
Mc Donald's uses a 'pull' supply chain.
Suppliers receive orders from the distribution center then produce the necessary raw materials.
(discuss the benefits of pull supply chain ...
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