Green Sourcing Process at McDonald's: Evaluation and Recommendations

This paper evaluates the current view of the French Fry sourcing at McDonald Corporation and provides recommendations for enhancing the Green Sourcing Process. The paper discusses the six crucial steps involved in the Green Sourcing Process and suggests specific actions for McDonald's to take.

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Green sourcing process at
McDonald

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Table of Contents
Introduction.................................................................................................................................................2
Purpose statement..................................................................................................................................2
Literature Review........................................................................................................................................2
Recommendations for action by McDonald’s..............................................................................................4
References...................................................................................................................................................6

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Introduction
The primary purpose of this paper is to evaluate the clear view of the current view of the
French Fry sourcing at McDonald Corporation. McDonald's is well known for their French fries
all over the country. Now McDonald's trying their best effort to achieve a good position in the
eyes of consumers regarding an eco-friendly matter in making French fries. The paper will help
in explaining the desired need and the evaluation of the practicing of the Green Sourcing Process
for McDonald Corporation. The green sourcing processes consist of the six crucial steps that
need to be evaluated and enhanced with the proper implementation of the action plan, and this
will be provided throughout this paper.
Purpose statement
The purpose is to enhance each of the six steps involved with the green sourcing
processes for The French Fry commodity at McDonald's.
Literature Review
Green sourcing is described as activities that contain reduction, materials needed
recycling and reuse in the process of purchasing. For efficiently implanting green sourcing
practices the company has to estimate the environmental results of its products. So, McDonald's
has to achieve the ability of environmental consequences of its product that is French fries, at
every stage of the supply chain process for implementing the Green sourcing practices to
upgrade their image in the eyes of eco-friendly consumers (Ahluwalia, 2017). For that
McDonalds has to increase their businesses regarding the costs to acquire the potatoes,
evaluating the firming practices required to produce good quality of potatoes which they
required.
The firm has brought more than 3.4 billion pounds of potatoes from the United States
yearly. The company mainly preferred Russet Burbank among other variety of potatoes. This
choice proved costlier to the company. Moreover, the potatoes take too much time to grow, more
water requires, and affected by diseases like rot. The result is that farmers have to take measures
such as pesticides to maintain the goodness of the potatoes. This causes a harmful impact on the
environment because when the wind blows or due to harmful rain dust from the farm carried out
to other regions. The activist investor groups have said to McDonald's and their suppliers to

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assume more maintenance practices. SO, McDonald's has adopted Green Sourcing process to
cover the maintenance that is required for sourcing of potatoes on production and sale of French
fries at McDonald’s restaurants (Anaf, Baum, Fisher, Harris & Friel, 2017). There are six of the
crucial steps of the Green Sourcing process; they are as follows:
Assessing the opportunity
This is the first step, and it reveals the desired amount of costs involved within the given
category of the products, materials and their maintenance. There are five of the crucial areas
which need to be considered to improve the first step of the green sourcing process; these are
electricity, energy costs, recycling, packaging and the disposal of the respective material or the
products (Chen & Lee, 2015). The costs associated with the sourcing of the French fry at
McDonald corporation needs to be adequately analyzed.
Assessing the internal supply chain
The second step of the green processes reveals the engaging of the concerned internal
supply chain stakeholders to bring out the overall effectiveness and efficiency of the respective
products. It becomes vital to understand and identify the desired business requirements along
with the product specifications as well as the perspectives of the internal stakeholder’s within the
concerned supply chain of the business (Gheribi, 2017). Being the representative at the
McDonald Corporation, it is the primary responsibility to verify as well as identify the
specifications of the French Fries sold at McDonald Corporation.
Assessing the supply market
The evaluation of the concerned supply market segments is of great importance as it
helps in facilitating the overall growth of the firm to a more significant extent. There needs to be
an engagement of the new as well as existing vendors as these contribute towards the
development and growth of the concerned business processes (Karlsson & Sköld, 2018). It is
also important to cite green opportunities as well as to identify the possible commodity
substitutions along with the new and latest manufacturing procedures.
Developing an effective sourcing strategy

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This step is considered as crucial as it relates to the development of quality within the
product and the quality of the gathered information. This step helps in determining the desired
outcome, implementation as well as the continued success for the overall sourcing procedures.
Implementation of the sourcing strategy
The application of vital sourcing strategies is of great importance. Bid analysis or the
evaluation of the desired quantifies cots along with the benefits of the concerned sustainability
attributes are included in this step (Kung, Rigu, Karau, Gachigi & McDonald, 2015). Moreover,
there should clear identification and communication regarding the evaluation criteria that gains
support from the diverse stakeholders within the green sourcing procedure.
Institutionalizing the sourcing strategy
Ate selecting the desired vendors, it is essential for McDonald Corporation to finalize the
desired contacts with them and then the procurement process should start. On the hand, there
should closely track the sustainability attributes, and these need to be audited while the final step
of the green process (Sanghavi, Rana, Shenoy & Yadav, 2015). The metrics need to be defined
appropriately of the supplier based performance, compliance, delivery, etc. Moreover, the
sustainability goal of the firm needs to be considered with the results of the outsourcing
procedure while compiling with these metrics.
Recommendations for action by McDonald’s
It’s strongly recommended that each of the steps involved with the green sourcing
process at McDonald Corporation needs to be executed with great care. To complete the entire
process for the French fry, the collection of the relevant data regarding the execution of the costs
and the quality of the material is vital. It is essential for McDonald Corporation to collaborate ad
effectively efficiently with the respective stakeholder as these will improve the overall business
processes and condition for the firm.
It is also recommended that there need development and management of the respective
supplier relationships for achieving the desired success for the goods and services. The
development of the stronger relationship helps in bringing more profitability towards the firm by
reducing or minimizing the risks involved with the business processes.

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It is recommended that there should be specificity which refers to the availability of the
substitutes of the concerned products. There are four different types of the supply chain
strategies which needs to be adopted by McDonald Corporation to increases the reliability of the
entire green sourcing process (Shelman, McLoughlin & Pagell, 2016). There should be a
formation of the efficient supply strategies which will aim to create the highest cost efficiency.
It is recommended that the development of the supply chain strategies should be
responsive as well as flexible to cope up with the desired changing nature of the concerned
business market segments. There should also be agile supply chain strategies that will aim to be
responsive as well as flexible to the respective customers.
The primary focus should also be given for improving the outsourcing process by various
means as well as with the help of latest innovative techniques. There have been numerous
benefits regarding the following of the outsourcing procedures. Also, it is recommended that the
quality of the products along with the services increases the reliability of their business market
segments. The primary focus should be given to the best processes or activities those are
effectively expected by the firm.
It is recommended that the logistics systems need to be followed properly. I can be done
with the help of the execution of the management functions, and the emphasis should be on the
lean inventory means. The application and the implementation of the above recommendations
will help in enhancing the entire green sourcing procedure.

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References
Ahluwalia, S. (2017). General Considerations in Sourcing Herbs, Spices and Agricultural
Commodities in India. Biology, Engineering, Medicine and Science Reports, 3(1).
Anaf, J., Baum, F. E., Fisher, M., Harris, E., & Friel, S. (2017). Assessing the health impact of
transnational corporations: a case study on McDonald’s Australia. Globalization and
health, 13(1), 7.
Chen, M. F., & Lee, C. L. (2015). The impacts of green claims on coffee consumers’ purchase
intention. British Food Journal, 117(1), 195-209.
Gheribi, E. (2017). The Activities of Foodservice Companies in the Area of Corporate Social
Responsibility–on the Example of International Fast Food Chain. Journal of Positive
Management, 8(1), 64-77.
Karlsson, C., & Sköld, M. (2018). Specialization and commonalization in multi-branded
manufacturing corporations: Learnings from automotive industries. International Journal
of Operations & Production Management, 38(1), 67-89.
Kung, K. S., Rigu, S. W., Karau, S. K., Gachigi, K., & McDonald, L. (2015). Techno-economic
feasibility of green charcoal production in Kenya. In Sustainable Access to Energy in the
Global South (pp. 87-100). Springer, Cham.
Sanghavi, P., Rana, Y., Shenoy, S., & Yadav, R. (2015). A review of green supply chain
management in the automobile industry. International Journal of Current Engineering
and Technology, 5(6), 3697-3702.
Shelman, M., McLoughlin, D., & Pagell, M. (2016). Origin Green: When Your Brand is Your
Supply Chain. In Organizing Supply Chain Processes for Sustainable Innovation in the
Agri-Food Industry (pp. 205-233). Emerald Group Publishing Limited.