What is the core business of the company you researched and what is the strategies used as part of their SCM, Justify your answer by providing examples from the company practice
Itis worth noting that, the core competence of McDonald is to provideconvenience of fast food to the customers at reasonable prices andquality food and beverages that meet the customers need. Forinstance, the company use a competitive strategy of making sure thatfood provided does not cost high prices since the management has tocarry research on demographics. The next core competency isproduction of unique brand in the market considering cost leadership.For example, quick service to the customers is paramount and it is acore competence based on that the management introduces trainingprograms to equip the employees with the required information toserve the customers.
Strategiesused as Part of their SCM
Theorganization has a simply, but effective system when it comes tovalue chain. Under this strategy, food is supplied to variousbranches through the third party logistics operators, which means itdoes not get involved in handling products while in transit. Thisstrategy is the best in handling perishable and high-risk products,as logistical companies are known to be effective when it comes todelivering the required product. This form of supply chain isreferred to as inbound logistics. The production activities takeplace in the company’s huge plants without much control ofdistribution of the finished product. Packaging is also contracted toother small companies and this strategy is known to increaseefficiency. Whenever the production process is on-going, specificmeasures and guidelines are undertaken to ensure safety of employees,as well as quality preservation. While products are being taken tovarious destinations, the company carries out monitoring through thecomputerized systems, something that facilitates consistency in theway goods are produced and delivered to various destinations. Supplychain management has to focus on differentiation, focus and costleadership so that the company can be competitive in the market.
Draw the supply chain for one of the products of your organization explained well taking into consideration all the aspects we discussed on the SC
Indentify the core competencies of the company you research. Justify why you think they are core competence. If you think the company does not have any core competence, explain why?
Oneof the strengths that have maintained the dominance of the company isits strong global brand. The brand is recognized everywhere,especially the Golden Arches. The standards applied in producing theproduct in the United States are similar to those utilized in otherparts of the world where they have branches, meaning consistency inproduction is what has been keeping the company above othersglobally. Based on the cultural settings and the regional demands,the company adjusts its systems to suit the demands of the locals andauthorities. An additional strength is diversified income, which isfacilitated by the size. The company has locations across the globe,something that allows it to make adequate profits through sales.
Describe the possible benefits that your company can achieve by sharing information. Refer to 3 examples of information that should be shared and its benefits.
McDonalduses Supply chain related information technologies and informationsystem that uses cold chain supply which is used for the perishableproducts. The purpose of the cold chain supply is to ensure thatquality is obtained. Quality management ensures the organization’sproduction and service delivery are sustainable in the turbulentmarket characterized by cutthroat competition. For the company tocope with quality issues it has to plan well, establish controls, setup quality assurance mechanisms, and strategize on how to improve oncontinuous basis. The company is aware of the impacts of qualitymanagement on the overall performance and it has always facilitatedquality improvement in all areas, including the means of attainingit.
Explain in detailed what activities the company is outsourcing. What 2 benefits and constrains are (strategic or tactical) with such a decision. If the company is not outsourcing, what activities do you think they should outsource. Justify your answer.
Outsourcingis obtaining products or raw materials from a supplier or outside thecompany where the supply chain has to meet the set timeframe andproduct quality. McDonald outsource so that they can meet the demandof the customer. The fast moving food in different countries has ahigh demand and thus McDonald has to outsource to meet the need ofthe customers. One of the outsourced services is an IT service thatis provided by Affiliated Computer Service Inc. The strategy savesmoney by outsourcing. However, there is a potential risk ofoutsourcing, like failure to meet on-time supply that results to lowproduction.
Thebuy analysis influences the company decision to outsource. Forinstance, the buy analysis works in way that when one supplier theproduct then the company within one week the supplier is paid. Theinventory system warns the company when the products go below thelevel specified and thus the management has to order the products.
Based on your work, explain how the company can improve its supply chain performance in order to fulfill the customers’ needs. (You need to refer to at least of the order fulfilling activities).
McDonaldmay measure the supply chain performance by introducing mergers andacquisitions so that they can measure supply chain performance. Thestrategy lowers the operational cost so that the customers can gainaccess to the fast food. It can also measure the supply chainperformance by entry to other foreign markets and reducing operatingcosts.