Supply Chain Management for Wesfarmers and McDonalds

Running Head: SUPPLY CHAIN MANAGEMENT 1
Supply Chain Management

SUPPLY CHAIN MANAGEMENT 2
Executive Summary
In effective management of operations, it is very important for the companies to manage its
supply chain and product flow. This is the reason that companies need to look at how individual
processes are adding substantial value to their products and services. Under supply chain
processes, process flow can be defined as management of different areas such as information,
cash and products. The below report purposes to analyze the supply chain practices of two
chosen organizations i.e. Wesfarmers and McDonalds. The organizations were selected in the
first assessment. This report includes the summary of first assessment like description of
organizations and comparison of their supply chain. Second assignment is focused on analyzing
the supply chain models and processes of both organizations. There are some recommendations
are given for both companies which can enhance their supply chain practices.

SUPPLY CHAIN MANAGEMENT 3
Table of Contents
Introduction.................................................................................................................................................4
Description of McDonalds...........................................................................................................................4
Description of Wesfarmers..........................................................................................................................4
Comparison of McDonalds and Wesfarmers Supply Chains........................................................................5
Literature Review........................................................................................................................................5
Analysis of McDonalds.................................................................................................................................6
Customer order cycle..............................................................................................................................6
Replenishment cycle................................................................................................................................7
Procurement Cycle..................................................................................................................................7
Recommendations and Conclusions........................................................................................................7
Analysis of Wesfarmers...............................................................................................................................8
Recommendations and Conclusions........................................................................................................9
References.................................................................................................................................................10

SUPPLY CHAIN MANAGEMENT 4
Introduction
Supply chain management is the wide range of processes which are required to plan, control and
perform the flow of products from purchasing the raw materials and manufacturing through
distribution to end consumer in the cost effective manner possible (Fredendall and Hill, 2016).
The objective of below report is to conduct supply chain analysis and operations process of two
different organizations. For this report, two organizations are chosen i.e. McDonalds and
Wesfarmers. Among two, one of the companies is based in Australia. First part of this report
includes the summary of assessment 1 that describes business model, current supply chain,
suppliers and types of customers of each company. Furthermore, this report includes the existing
supply chain analysis of both of the chosen organizations. At the end, conclusion and
recommendations are given on supply chain systems of both companies. These recommendations
will help the organizations to improve their supply chain processes.
Description of McDonalds
McDonalds is an America based fast food organization that was established in the year 1940 as a
restaurant that is run by Maurice and Richard McDonald in California, United States. From the
previous assessment, it can be stated that McDonalds is operating its business by using
franchising business model. It is running its restaurants through franchising and it includes
conventional franchises which are under franchise agreements. The organization has
differentiated its customers by using demographic characteristic i.e. age. Primary customers of
this company are children, teenagers and business class people who love to eat fast food. In its
supply chain management system, the organization has different activities such as customer
order, replenishment cycle and procurement cycle. The major suppliers of McDonald are such as
Simplot, Martin Brower, OSI and McCain (Ovenden, 2018).
Description of Wesfarmers
Wesfarmers Limited is a conglomerate in Australia that is headquartered in Western Australia
with the interests in chemicals, coal mining, retail, hotels, fertilizers, safety and industrial
products (Wesfarmers, 2018). For its products, it is targeting an entire family as it offers a broad
variety of products. Under its supply chain management system, the company uses the Supplier