International Supply Chain Planning, Design and Implementation

This assignment evaluates the need for supply chain network design change in Tesco. It explores two supply network configurations and evaluates factors needed to be considered as the organization adopts a response-based model of business. The first configuration is Bullwhip Reduction and the second is the evaluation of the use of new technology pertaining to RFID. The incorporation of the pull system in the company will introduce cross docking and apply the different types of the collaborative plan, forecasting and replenishment (CPFR).

Running head: INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND
IMPLEMENTATION
International Supply Chain Planning, Design and Implementation
Name of the Student
Name of the University
Author’s Note

1INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
Table of Contents
Assignment Task 1..............................................................................................................3
1. Executive Summary.........................................................................................................3
2. Introduction of TESCO and background to the need for supply network design change
.........................................................................................................................................................3
3. Explanation of two supply network configurations which can be explored and
evaluated with the relevance of these models to the chosen organization.......................................4
4. Evaluation of the factors which are needed to be considered as the organization adopts
a response-based model of business................................................................................................5
5. Procurement strategies should to be implemented..........................................................7
6. CPFR concept contributing to both reactive and proactive response models mentioned
above in the context of the organization’s circumstances...............................................................9
7. Conclusions and recommendations...............................................................................11
References..........................................................................................................................13
Assignment Task 2............................................................................................................15
1. Overview of the McDonald’s case................................................................................15
2. Objectives of SCM applicable to McDonalds...............................................................16
3. Developing an improvement strategy using SCOR Model...........................................18
4. The SCOR model diagram labelled with the customer relationship spectrum as per...20
5. Examining and discussing the cross- functional supply chain drivers of McDonald’s
business model...............................................................................................................................23
References..........................................................................................................................24

2INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
Assignment Task 1
1. Executive Summary
The assignment aims to evaluate the need for supply chain network design change in
Tesco. The overall findings have revealed that the present problems with increasing bullwhip
effect in the SC of Tesco and non-automation in the RFID process. Therefore, the overall
findings have suggested for relying on Order-Up-To policy to compensate the problems of
bullwhip effect. The main recommendation for improving the RFID system with is identified
with improvement in terms of conducting handheld inventory counts with the use of “passive
ultrahigh-frequency (UHF) EPC Gen 2 RFID tag”. Additionally, the response-based model
will further focused on the reduction of the principles in the generic SC modelling will be able to
tackle the problem of bullwhip within Tesco. The main problem agent will evaluate the problem
of Bullwhip Reduction.
2. Introduction of TESCO and background to the need for supply network design change
Tesco PLC is recognized as a leading British multinational grocery dealing in general
merchandise goods. The company is headquartered in Welwyn Garden City, Hertfordshire. In
terms of revenue TESCO is the third largest retailer in the world by a measure of the gross
revenues (Aivazidou et al. 2016). The shops of the company are seen to be segregated across
Asia and Europe and the company is considered to be among one of the pioneers in the groceries
business in the UK. The company is able to show its sustainable development and also providing
the scope for further improvement (Diabat, Kannan and Mathiyazhagan 2014). The main need
for the change which is to be incorporated in the company is depicted as per the innovational
aspects as per the innovational aspects which will be able to add more value in the goods. The

3INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
improvement in the supply network design change can be also brought with investing in the
technology such as RFID which will provide a competitive edge to the company. The non-food
product is also seen to hold a considerable position for the company which will be conducive for
the company in making future growth of the company. Therefore, Tesco has the scope of
developing the supply network design change in this area. Moreover, the IT director of the
company has specified to put more emphasis on supply chain system rather than technology
(Tesco plc. 2018).
3. Explanation of two supply network configurations which can be explored and evaluated
with the relevance of these models to the chosen organization
The two changes which needs to be incorporated in the company are stated as follows:
 Bullwhip Reduction
The reduction of the principles in the generic SC modelling will be able to tackle
the problem of bullwhip within Tesco. A previous study was able to demonstrate three
algorithms which were deemed for generating excessive bullwhip and avoiding such a
practice (Tachizawa et al. 2015). The important structure was also recommended with the
change to brought in the Order-Up-To policy. This is considered as a simulation model
which was developed approximately 75% of the sales variability at the same time
maintaining customer service level. The charges were further implemented among the
producer and retailers with significant economic conduciveness which are as per the
suggested model (Christopher 2016).
 Evaluation of the use of new technology pertaining to RFID
The use of the RFID technology can be changed in Tag-Reading Robot. The main
considerations should be considered with simplifying and adding to the security. In

4INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
addition to this, the security dimension will be also able to ensure that the right goods are
available at the right place and right time. At present the incorporation of the RFID
technology in the company is only evident with interpretation of inventory counts by
reading frequency of the garment’s “passive ultrahigh-frequency (UHF) EPC Gen 2
RFID tag”. However, it needs to determined that the company has a considerable scope
of improvement in terms of conducting handheld inventory counts. The use of an
automated inventory system will be able to consider the necessary changes which can be
incorporated with the use of RFID system to further develop the automating procedure. It
needs to be further seen that improvement in the supply network design change can be
also brought with investing in the technology such as RFID which will provide a
competitive edge to the company (Fernie and Sparks 2014).
4. Evaluation of the factors which are needed to be considered as the organization adopts a
response-based model of business
The response-based theory is associated to the conceptualization of the humans as active
agents as per the response to the highly complex social situations. It has been further informed
by the social justice and human rights. This approach has further left relatively new
psychotherapeutic approach which are new in responding to the individuals who are
experiencing difficulties in area such as supply chain (Chae, Olson and Sheu 2014). In the
organizational perspective the response-based model is treated as a dependent variable. The
previous studies have shown the implementation of the response-based model in areas when the
individuals exposed to environmental stimulus or demand. The main incorporation of the
response based approach will compose of problems agents and problem response. These are
needed to be based on the changes which are to be maintained with psychological, physiological
and behavioral. The stimulus factor should be considered with response (Mylan et al. 2015).

5INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
Figure: Response-based model of Tesco
(Source: As created by the author)
The response-based model will be further focused on the reduction of the principles in the
generic SC modelling will be able to tackle the problem of bullwhip within Tesco. The main
problem agent will evaluate the problem of Bullwhip Reduction (Potter et al. 2016). The
stimulus response in this case needs to be depicted with incorporation of the important structure
was also recommended with the change to brought in the Order-Up-To policy. This is considered
as a simulation model which was developed approximately 75% of the sales variability at the
same time maintaining customer service level. The charges were further implemented among the
producer and retailers with significant economic conduciveness which are as per the suggested
model (New 2015).
The second problem with the RBM needs to be considered with use of new technology
pertaining to RFID. The evaluation of the problem agent in this case can be considered with
RFID technology can be changed in Tag-Reading Robot. The stimulus response in this case
needs to be considered with the security dimension will be also able to ensure that the right
goods are available at the right place and right time. At present the incorporation of the RFID

6INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
technology in the company is only evident with reading inventory counts by reading frequency
of the garment’s “passive ultrahigh-frequency (UHF) EPC Gen 2 RFID tag”. However, it
needs to determined that the company has a considerable scope of improvement in terms of
conducting handheld inventory counts (Farahani et al. 2014).
The use of an automated inventory system will be able to consider the necessary changes
which can be incorporated with the use of RFID system to further develop the automating
procedure. The various types of the other factors which will addressed in the model will relate to
the application of an automated inventory system will be able to consider the necessary changes
which can be incorporated with the use of RFID system to further develop the automating
procedure (Distelhorst, Hainmueller and Locke 2016). It needs to be further seen that
improvement in the supply network design change can be also brought with investing in the
technology such as RFID which will provide a competitive edge to the company. The following
factors implemented with the response based model will be effective in addressing the various
types of the problems for the company. The application of such a model will be effective in
addressing the different types of the problems which are currently associated to the supply chain
design network (Mylan et al. 2015).
5. Procurement strategies should to be implemented
At present Tesco is depicted to adopt the concept of lean management similar to Toyota.
This has been seen to be simplifying the unnecessary elements in the system for avoiding waste.
This guidance has provided Tesco the opportunity for launch of the comprehensive research
required for analyzing the cola SC. Based on the results obtained by the company there are
several scopes for the company which is related to reduce the cost and at the same time improve
the efficiency. This includes minimizing the touch points, reducing the lead time and boosting
the utilization rate. The company was seen to introduce a continuous replenishment system for

7INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
innovating the growth prospect in the supply chain. The overall benefit for the company is
identified in reducing the inventory holding, cutting the cost and improving the availability of
product and guarantee the food quality. This particular reform as per Tesco is depicted as “pull
system”. This is different from the push system, as in this system the retailers are seen to be
influence by pull system. This can be replenished with products continuously meeting with the
demand of the customers. It will also provide the opportunity for the customer to decide whether
the customer can consider a comeback and in which place customer will go. Tesco has been able
to combine the availability with low price and become unified with the consideration with
competitive advantages with the use of creating effective SC (New 2015).
The incorporation of the pull system in the company will introduce cross docking and
apply the different types of the collaborative plan, forecasting and replenishment (CPFR). This
will support the inventory management system in a better way. This is seen to be closely related
to SC practice of Tesco. The company will be beneficial in terms of taking the cross-docking
technique which will essentially avoid the need to storing and reducing the overall inventory
volume. Moreover, Tesco had previously analyzed the need for introducing the relevant pattern
through the CPFR system and also sharing the data across cross platforms. This system is
particularly conducive for the company as it will be able to significantly cut down the cost and at
the same guarantee the availability of product and benefits to forecast the stocking holding.
Tesco in general is seen to control the stock holding at a lower level of the inventory and at the
same time fulfill the demand of the customers. As Tesco is comprised under the retail industry
inventory management is depicted as an important operational challenge for the company. in
addition to this, excess of stock will lead to increasing amount of cost of the inventory in the
management area (Fernie 2014). Therefore, it needs to be see that the adoption of the pull system
in the company will not only introduce cross docking but also allow the company to follow a
relevant independent demand principle. Additionally, the different types of the initiatives taken

8INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
by the company will be effective in fulfilling the implementation of RFID technology. The
collaboration of the pull system in the RFID will add to the certain improvement in the
organization which are directly seen to eb evident in terms of the various type of the benefits
which are seen to be relevant to knowing the demand of the products from beforehand. As the
company will be able to track the demand of before and product as per the needs of the customer,
it will be able to incorporate certain information in the RFID while sourcing of the products
which will be beneficial to the company in terms of reliability. In this way the company will be
able to succeeding in product availability by focusing on the customer (Farahani et al. 2014).
6. CPFR concept contributing to both reactive and proactive response models mentioned
above in the context of the organization’s circumstances
The early initiatives for value creation are often inferred with migrating from
fundamental and functional activities to other modes such as just-in-time and linking business
process like SCM. The next important focus is considered with optimization of decisions in a
functional manner and then testing the same with cross functionality. Companies in general have
implemented activity-based costing principle for functionally meeting their goals (Macpherson
and Macpherson 2015). The goal of CPFR is identified as creating a total value chain
collaboration among the different types of trading partners who can create a certain value for the
product to the end consumers. In general, the progressive companies are seen to migrate towards
the best practice for engaging in collaborative relationships and increasing value dramatically.
For instance, each step-in migration is seen to comprise of part, information, optimization,
collaboration and exchange. Therefore, in general the contribution of CPFR has continuously led
to increasing the efficiency of trading partners, value creation and marketplace competitiveness.
The vital focus needs to be put with focusing on activities which will bind towards consumers,
manufacturers and retailers (Jacobs and Singhal 2017).

9INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
Tesco had introduced cross docking system which is applied with our collaborative
planning, replenishment and forecasting technique (CPFR). Tesco is discerned to introduce the
cross-docking operations and conceptualize the collaborative plan, replenishment and
forecasting. This is seen to be considered in terms of support pertaining to the inventory
management. The company has analyzed the need pattern with the use of CPFR system and also
sharing the data in the internet. This initiative for the company is particularly discerned to be
beneficial as it will be able to significantly cut down the cost and at the same guarantee the
availability of product and benefits to forecast the stock holding. Tesco in general is seen to
control the stock holding at a lower level of the inventory and at the same time fulfill the demand
of the customers (Mishra et al. 2018).
The operations of the company in US is often seen to support the competition against
each other with creating a more collaborative supply chain. In order to ensure this, it had adopted
CPFR particularly for perishable goods. The adoption of this model for the company has been
able to ensure that it is able to share more amount of forecast across various categories of items
(Fan et al. 2015). This is particularly essential for compensating the perishability of meals and
food. The incorporation of CPFR in Tesco has been able to ensure that companies able to create
greater level of understanding with information sharing among the suppliers. This is particularly
identified to be common in various types of other retail business by the use of collaborative
supply chain management. In addition to this, the transactional ensuring fight range of
competitiveness among quality products is considered as main function of the company.
Therefore, Tesco has been able to integrate global sourcing of teams and monitoring their
operation in a strategic manner. The company has able to establish a good rapport with local
suppliers as well with the use of CPFR technique (Syntetos et al. 2016).

10INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
The incorporation of this technique is for reduced inventory cost, optimising the use of
resources and also shortening of lead times. The transactional use of CPFR can be directly
discerned with replaceable shelves, reducing time spent for restocking and arranging the
products and freeing up the spent time of the staff with the customers. Some of the other cross
benefits of implementing CPFR in the company can be directly observed with direct benefits in
the customer loyalty club scheme and engaging in customer rewards program (Stank et al. 2015).
The top hundred customers are seen to be worth as much as the sales in the bottom 4000.
Moreover, the largest customer information database for the company has been significantly
boosted by the incorporation of CPFR by reducing congestion in stores and introducing self-
service checkouts. The overall requirement for cross docking has not only reduced the need for
space but also labour cost. Moreover, the improvements are evident both in terms of operational
and inventory efficiency. Additionally, single vehicle has been continuously able to serve in
several stores thereby reducing the throughput time and transportation costs. Therefore, it can be
discerned that longer opening hour for more stores in the online department has been able to
offer flexible home delivery along with global sourcing with the use of CPFR self-service
checkouts designated with parking for prams (Ghosh, Sarmah and Jha 2018).
7. Conclusions and recommendations
Conclusion
The two changes which needs to be incorporated in the company are mainly discerned
with bullwhip reduction and Evaluation of the use of new technology pertaining to RFID.
Assessment of the factors which are needed to be considered as per response-based model of
business is considered with focused on the reduction of the principles in the generic SC
modelling will be able to tackle the problem of bullwhip within Tesco. The main problem agent
will evaluate the problem of Bullwhip Reduction. The stimulus response in this case needs to be

11INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
depicted with incorporation of the important structure was also recommended with the change to
brought in the Order-Up-To policy. The incorporation of the pull system in the company will
introduce cross docking and apply the different types of the collaborative plan, forecasting and
replenishment (CPFR). This will support the inventory management system in a better way.
Recommendation
Despite of the excellence of the company operations management there are several
opportunities to focus on sustainable development and make further improvement for excelling
in terms of supply chain network configurations. Typically, Tesco needs to maintain the
innovation aspect for having a better competitive edge by adding more values in its goods.
Therefore, in general the company has the scope of investing in technology such as RFID in a
more refurbished manner so that it can compete in a better way. The company needs to also
realize that there may be several weaknesses in relying on only high technology. Therefore,
Tesco needs to incorporate human capabilities along with technology. The non-food department
still holds a considerable prospect for growth in the market. Tesco needs to source a wide range
of non-food products and improve the overall delivery of non-food services. This will allow the
company to manage its inventory in a better way. In addition to this, as the Internet shopping
keeps on going Tesco still has a wide scope of contributing to the total revenue especially in
international market. In the same time, it has white potentiality for growth in the online shopping
business across the world. Henceforth, it should focus on distributing its services especially the
online retailing service on a global scale.

12INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
References
Aivazidou, E., Tsolakis, N., Iakovou, E. and Vlachos, D., 2016. The emerging role of water
footprint in supply chain management: A critical literature synthesis and a hierarchical decision-
making framework. Journal of cleaner production, 137, pp.1018-1037.
Chae, B., Olson, D. and Sheu, C., 2014. The impact of supply chain analytics on operational
performance: a resource-based view. International Journal of Production Research, 52(16),
pp.4695-4710.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Diabat, A., Kannan, D. and Mathiyazhagan, K., 2014. Analysis of enablers for implementation of
sustainable supply chain management–A textile case. Journal of cleaner production, 83, pp.391-
403.
Distelhorst, G., Hainmueller, J. and Locke, R.M., 2016. Does lean improve labor standards?
Management and social performance in the Nike supply chain. Management Science, 63(3),
pp.707-728.
Fan, T., Tao, F., Deng, S. and Li, S., 2015. Impact of RFID technology on supply chain decisions
with inventory inaccuracies. International Journal of Production Economics, 159, pp.117-125.
Farahani, R.Z., Rezapour, S., Drezner, T. and Fallah, S., 2014. Competitive supply chain
network design: An overview of classifications, models, solution techniques and
applications. Omega, 45, pp.92-118.
Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.

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Fernie, J., 2014. 02 Relationships in the supply chain. Logistics and retail management:
Emerging issues and new challenges in the retail supply chain, p.35.
Ghosh, A., Sarmah, S.P. and Jha, J.K., 2018. Collaborative model for a two-echelon supply chain
with uncertain demand under carbon tax policy. Sādhanā, 43(9), p.144.
Jacobs, B.W. and Singhal, V.R., 2017. The effect of the Rana Plaza disaster on shareholder
wealth of retailers: Implications for sourcing strategies and supply chain governance. Journal of
Operations Management, 49, pp.52-66.
Macpherson, C. and Macpherson, M., 2015. ESG implications for Supply Chain Issues.
Mishra, D., Gunasekaran, A., Papadopoulos, T. and Childe, S.J., 2018. Big Data and supply
chain management: a review and bibliometric analysis. Annals of Operations Research, 270(1-
2), pp.313-336.
Mylan, J., Geels, F.W., Gee, S., McMeekin, A. and Foster, C., 2015. Eco-innovation and retailers
in milk, beef and bread chains: enriching environmental supply chain management with insights
from innovation studies. Journal of Cleaner Production, 107, pp.20-30.
New, S.J., 2015. Modern slavery and the supply chain: the limits of corporate social
responsibility?. Supply Chain Management: An International Journal, 20(6), pp.697-707.
Potter, A., Lalwani, C., Disney, S. and Velho, H., 2016. Modelling the impact of factory gate
pricing on transport and logistics. In Developments in Logistics and Supply Chain
Management (pp. 231-239). Palgrave Macmillan, London.
Stank, T., Autry, C., Daugherty, P. and Closs, D., 2015. Reimagining the 10 megatrends that will
revolutionize supply chain logistics. Transportation Journal, 54(1), pp.7-32.

14INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
Syntetos, A.A., Babai, Z., Boylan, J.E., Kolassa, S. and Nikolopoulos, K., 2016. Supply chain
forecasting: Theory, practice, their gap and the future. European Journal of Operational
Research, 252(1), pp.1-26.
Tachizawa, E.M., Alvarez-Gil, M.J. and Montes-Sancho, M.J., 2015. How “smart cities” will
change supply chain management. Supply Chain Management: An International Journal, 20(3),
pp.237-248.
Tesco plc. 2018. History. [online] Available at: https://www.tescoplc.com/about-us/history/
[Accessed 26 Dec. 2018].

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Assignment Task 2
1. Overview of the McDonald’s case
The given case study has stated about the poor performance of the company which has
led to plenty of severe attention given on the business pages. The deteriorating performance of
the company importantly relates to provenance, or origins, of its products. in 2010, the company
has written about the increasing interest in terms of the transparency of the SC initiatives.
Moreover, the strategies developed by the company has been seen to be based on the prediction
of the increased interest in the transparency of SC. It needs to further seen that the firms need to
develop the main strategies for knowing and explaining most of the concepts. As the idea of the
product provenance has crept steadily, it is seen that the corporate strategies are seen to be a
compulsory issue for the government and the boards. In the UK, legislation is seen to be in
progress as per the California Supply Chain Transparency Act which is applicable to wide range
of firms (Jacobs, Chase and Lummus 2014).
The offering of three lessons by the company can be discerned in form of transparency in
the long game, Global operations need consistent global standards and at times it is seen that the
transparency has paradoxical implications. Despite of significant nature of the challenges
McDonald’s has never identified to be idle. The critics has been able to suggest on substantial
changes to be implemented both in terms of communication and practice. The transparency in
the long game needs to be considered with reputational challenge faced by the company. The
global operations need is identified with the progress made by the company in terms of the
adoption of food safety scandal in China. Despite of this, the company cannot be trusted and this
may further effect on the credibility of the company. Therefore, the firms are needed to be
cautioned. Moreover, transparency in the SC imitative are not considered under a normal

16INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
program which is rolled out in different regions. The evidences of transparency have paradoxical
consequences in terms of the videos conducted with Grant Imahara. Imahara has held up a
considerable portion of the flesh from the conveyor. However, this does not suggest approving of
the food safety practices. This paradox has been widely applied by the firms in terms of the
considering the perspective of various range of industries. The ethical range of initiative can be
depicted with reinvention of the brand. In one of the experiments the company has further stated
about the various types of the other initiatives which are seen to be based on the different types
of provenance agenda (Dai, Peng and Li 2017).
2. Objectives of SCM applicable to McDonalds
The main objective in the application of the supply chain strategy can be depicted as per
Service Provider Relationship Management and CRM. The implementation of this model has
explained the supply chain strategy as a significant part of the business. This supply chain
strategy will be able to incorporate all the aspects of company’s competencies and philosophy.
The SCM objective for McDonald’s should also consider the planning and management
associated to all the activities. These are considered with activities depicted as per sourcing,
procurement and conversion of all the activities which are related to logistics management
activities. The company needs to focus on adopting to a low-cost strategy for ensuring efficient
operations. The SCM integration is further considered with the demand and supply across all the
companies. It needs to be seen that strategy such as JIT will be helpful in minimizing the waste
and aim at reducing the operational cost. The benefits associated to this strategy by the company
can be inferred in terms of the higher quality customer service and also placing of certain special
orders (Achillas et al. 2018).
It can be inferred from the case study that the holding cost at McDonald’s is significantly
high. Therefore, the implementation of the JIT strategy will be beneficial in reducing the cost

17INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
associated to spoilage. In addition to this, the different types of the initiatives associated with the
NIT is seen to be conducive in terms of fulfilling the EOQ conditions which can state on the
ordering quantities. The variability in terms of assessing the lead times from the suppliers will
also ensure that the company is able to maintain a considerable amount of safety stock. The
supplier of McDonald’s is considered with the consumer demand (Yuen and Cheng 2015).
Some of the other provisions created by the company are related with safeguarding the
issues like poor quality, delivery charges, production problem and transportation. The SC
objectives at McDonald’s has been seen to be based on the various types of the strategies which
are seen to be based on trust, transparency and natural resilience. The SC at McDonald’s is also
designed to be efficient, collaborative and adaptive. The aforementioned traits have allowed the
company to compete in the newer markets and is also seen to be unmatched among the
competitors. The traditional SC will be further able to track the unforeseen political, competitive
and environmental changes. This mentality has been further allowed the joint ownership for the
organization to plan various objectives in a cohesive and integrated manner. The deeply
ingrained culture for the company has further led to a win-win relationship with the suppliers
which dates back to the beginning of loyalty, culture and trust. The industry and executive at Mc
Donald’s has recognized the sustainable accomplishment of the company across eight platforms
which are seen to be ranging across energy, climate change, Human heath, land, animal welfare
and impact on the community. Some of the other well noted objective of SC in the company can
be depicted with CSR and sustainability journey as the company is having an impressive track
record for ethics, economics and environment (Lambert and Enz 2017).
3. Developing an improvement strategy using SCOR Model
The development of the SCOR model at McDonald’s needs to be taken into account as
per planning, sourcing, making, devouring and product returns. The planning is depicted with

18INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
demand, supply planning and management. The source of this model is identified, managing and
accessing the sourcing. The make module is considered with managing, execution, packaging
and testing. The deliver condition is depicted as per invoicing, warehousing, transportation and
install. The return strategy under the SCOR model can be considered with raw material and
finished goods. Moreover, in the planning stage the main elements for McDonald’s has been
depicted as per balancing resources and determination of the communication in the entire chain.
The planning phase is also includes improving and measuring the efficiency in the SC. These
activities are applicable with the business rules which are inferred with transportation assets,
span inventory, regulatory compliance. This plan is also aligned with the SC plan and financial
plan for the company (Raghavendra and Nijaguna 2015).
The sourcing idea will be considered with material acquisition and souring infrastructure.
These elements are inferred with balancing requirements and resources which will describe the
procedure for managing inventory, supplier network and performance of the suppliers. This
strategy will also discuss on handling the supplier payments pertaining to receiving, transferring
product and verifying. The make process emphasis should be considered in the preparation of the
food products. This process includes production activities, releasing, packaging and staging
product. This stage should also include the process for managing transportation, production
network, facilities and equipment (Rowley and McMurtrey 2016).
In terms of the delivery phase, this will include the processes such as transportation, order
management and warehousing. This will also include revving the orders from the customer and
invoicing the same at the time of receiving the product. This step will also comprise of managing
the finished inventories, product lifecycles, exporting and importing the requirements. The return
policy has been depicted with the preparation and handling of the packing returns and defective
returns. The returns will further manage the inventory, regulatory requirements and

19INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
transportation. The SCOR process will be conducive in exploring different levels of process
details which will be conducive for a company to analyses the SC. This will further provide the
opportunity for the company to understand the customer, suppliers and the company in general.
Each step will be further linked with successful integration of product at each level. The model
will be also beneficial in providing the appropriate leverage pertaining to the capital investment
and creation of the SC road map. This is also linked with the alignment of the business functions
along with an average of six times return on the investment (Johnson et al. 2018).
Figure: Recommendation of process, metrics and best practice for SCOR in
McDonald’s
(Source: Paloviita 2017)
4. The SCOR model diagram labelled with the customer relationship spectrum as per
The score model at McDonald’s consists of three main elements namely suppliers,
company and franchises. The vital links of the supply chain model in the company mainly ranges
from procurement, warehousing, transportation and retelling of the food product. In addition to
this, the company is also engaged in e- procurement services which relates to purchasing and

20INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
sales of services, supplies and work-related equipment. The e-procurement acts as a website
which allows both registered and qualified users for buyers and sellers of services and goods. In
addition to this, either buyer or seller may be able to specify cost or invite bids online. Moreover,
the customers are also able to qualify for the volume discounts on special offers on the web. The
e-procurement system used by the company relates to Emac digital (Sanu and Alexander 2018).
Figure: Supply Network of McDonald
(Source: Manoharanand Alexander 2018)

21INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
Figure: SCOR model of McDonald with customer relationship spectrum
(Source: Ahearn Armbruster and Young 2016)
In order to understand the application of customer relationship spectrum at McDonald
important to know about the customer relationship management followed by it. Therefore, it is
seen that for ensuring consistent CRM practices in the company, it uses methods such as
improved data capture, fast issue resolution and real-time reporting. This uniformity is useful in
adoption of program known as PowerCentre, which is supplied by Astute Solutions (Tai 2018).
The software provider of Saturday to capture technique is generally conducive in monitoring and
measuring the customer relationship practised throughout the business. As per the given case
study it is often seen that the organisation faces transparency paradoxical consequences.
However, the use of PowerCentre software is designed to curb such issues by bringing in data
throughout the company by considering both negative and positive reviews. The choice of the
CRM software is into critical for standing the positive of data capture from the customers and
enable the use of both corporate services and individual franchises to access real-time customer
information (Kashmanian 2015).

22INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
The customer integration spectrum is seen to be to be evident with the planning phase. In
this phase the company has included sourcing, making, delivering, returning and enabling a
particular service for the customer. Therefore, this aspect of supply chain is designed to focus on
the customizations which are required as per the customers. Some of the additional functions in
the SCOR model will adhere to the processes such as transportation, order management and
appropriate storage of the food products. This will also include revving the orders from the
customer and invoicing the same at the time of receiving the product. This step will also
comprise of managing the finished inventories, product lifecycles, exporting and importing the
requirements. The return policy has been depicted with the preparation and handling of the
packing returns and defective returns. The returns will further manage the inventory, regulatory
requirements and transportation (Stangl and Thonemann 2015).
5. Examining and discussing the cross- functional supply chain drivers of McDonald’s
business model
Typically, there are three cross functional drivers which are responsible for driving the
supply chain at McDonald. This is seen with sourcing, information and pricing. In the sourcing
stage the company decides what activity to be performed in a sequential manner and selecting
the individual responsible for the same. Some of the most noteworthy activities under the cross
functional drivers include protection at the time of acute production, distribution and
transportation in the supply chain process (Emmanouilides and Fousekis 2014). Secondly, the
information phase comprises of the data and analysis of related facilities, costs, prices, inventory,
transportation and various types of other activities in the SC which are directly associated with
the distribution center. The third important consideration is identified with pricing. In this phase,
the company decides how much the it needs to charge for a particular service or good to make it
available in the supply chain process (Law 2017).

23INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
The adoption of cross supply chain is evident with coordination of logistical and cross
functional drivers for achieving an objective balance among the responsiveness and efficiency.
In addition to this, sourcing, information and pricing are conducive for the company in
facilitating the cross functional drivers along with improvements in the transportation. The cross
functional pledge and management is also the discerned with bringing together the important
decision-making for reducing the overall time for managing other activities in the supply chain.
The cross functional implementation in McDonald’s is mainly depicted with new product
development, sourcing and commodity management. In the context of supply chain management,
this is often related with cross from the ownership of task, target production, bringing with a new
synergies and achievement of organizational goals in a better way (Krishnaswamy 2017).
It is also essential for the company to manage the buying teams were associated with
carrying out the cross functional activities. This is essential for harmonization of purchasing
process across different types of business units. The cross functional efforts are for the managed
by both team-based management and cross functional buying teams. These may also include the
key suppliers play a crucial role in solving joint problems. Therefore, it can be summed by
saying that the implementation of cross functional activities in McDonald’s is a process of
moving the functionality of operations by maintaining some optimised departments within the
supply chain. Furthermore, the company also aims to minimize any instance of avoiding
misunderstanding with the variation in cross functional communication and response based KPI.
These responses are mainly taken from the retailers and the suppliers at both ends. Some of the
concepts under this includes the theoretical process lead time, total amount of deviations
accounting for delays in deliveries and response time for the overall operators within the store
(Taleizadeh and Sadeghi 2018).

24INTERNATIONAL SUPPLY CHAIN PLANNING, DESIGN AND IMPLEMENTATION
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