McDonald's Logistics: A Case Study in Supply Chain Management

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M C D O N A L D S - L O G I S T I C S
INTRODUCTION TO BUSINESS
AND MANAGEMENT

ABOUT MCDONALDS
• Established: 1940
• Industry: fast food chain
• Headquarters: Illinois
• Founders: Ray Kroc, Maurice and Richard
McDonald
• Main Products: Hamburgers, French fries, salads,
chicken, milkshakes, soft drinks, desserts,
breakfast, coffee, wraps

VISION AND MISSION
VISION
To become the
leading and best
fast food provider
across the globe
MISSION
• To be the favorite
place of customer
• To delight the
customers by
providing
unmatched
• Quality
• Cleanliness
• Service
• value

THE MCDONALD’S WAY

JUSTIFICATION FOR SELECTION OF
LOGISTICS
• Logistics is essential within the fast food industry
owing to following reasons:
• Raw materials are highly essential for the ultimate
products and add value to products
• Help in supply of convenient, quick and quality food

LOGISTICS IN MCDONALDS
• The logistics of the McDonald’s comprises of the
following:

INBOUND LOGISTICS
• Based on demand, orders are being placed to
distributors on daily basis
• Cold storage are used by distributors for storing
raw material and are later delivered to restaurant
• Received DQMP certification (distribution, quality,
management process)

COLD CHAIN LOGISTICS
• Dry and cold storage facilities
• Capable of storing products upto- 25°C
• Trucks are capable of carrying the following
products:
• Dry products (room temperature)
• Chilled Products (1°C – 4°C)
• Frozen Products (-18°C – -25°C)

OPERATIONS
• Centralized warehousing and distribution
activities
• The mass production activities are required to
establish distribution channel for carrying food to
the restaurants
• Well established equipment and processes within
the Kitchen.

OUTBOUND LOGISTICS
• The distribution system makes use of following
strategies:
• Licensing
• Franchising
• Joint Ventures
Serving of orders in 1 minute after the order is
placed

MCDONALDS INFORMATION SYSTEM
• Point of sales system
• Decision support system
• Transaction processing system
• Made for you system