Mcdonaldse Procurement

8/10/2019 Mcdonaldse Procurement

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McDonalds E-Procurement,

Logistics and Supply ChainManagement



Supply Chain

Management

by M. Ali Khan



McDonalds SupplyChain, E Procurement

and Logistics



Supply chain management is network ofinterconnected business in the ultimate provision

of product and services require by end customer Scm span all movement and storage of raw

material, work in process, finishes goods from

point of origin to point of consumption.



Mc Donald's scm integration

Successful scm require a change from managingindividual function integrating activities into supplychain process.

Supply chain process integration involvescollaboration work between buyers suppliers,common system and shared information.



Customer relationship management

Customer service management

Demand management

Order fulfillment

Manufacturing flow management

Supplier relation ship management

Product development and commercialization Returns management

Procurement

Physical distribution

Out sourcing Performance measurement



Supply chain strategies

Two types

Push strategy

Pull strategy



Push strategy

Communication between buyer and seller

Interactive and non interactive



Pull strategy

Ina pull strategy the customer request the productand pulls through a delivery channel.



W H A T I S E - P R O C U R E M E N T

B Y

J A H A N Z A I B D I L A W E R

( M B E - S P 0 8 - 1 3 )

McDonald’s E-Procurement



E-Procurement

E-procurement (electronic procurement,sometimes also known as supplier exchange) is the

business-to-business or business-to-consumer orBusiness-to-government purchase and sale ofsupplies, Work and services through the Internet as

well as other information and networking systems,such as Electronic Data Interchange and Enterprise

Resource Planning.



How E-Procurement Works

e-procurement is a Web sites that allows qualifiedand registered users to look for buyers or sellers ofgoods and services.

Buyers or sellers may specify costs or invite bidsonline.

Customers can Qualify for volume discounts orspecial offers on the web.



It also allows automated buying and selling using e-procurement software.

Ariba BuyerSoftwares of E-procurement System

Other softwares in E-Procurement System.

Coupa. Mikrofax.



Types of E-Procurement

Web-based ERP

e-MRO

e-sourcing

e-tendering

e-reverse auctioning

e-informing

e-market sites



There are seven types in E-Procurement:

Web-based ERP (Enterprise ResourcePlanning):

(Creating and approving purchasingrequisitions, placing purchase orders and receivinggoods and services by using a software system based on Internet technology .)

e-MRO (Maintenance, Repair and Overhaul).

(Only for maintenance and repairing concerns)

e-sourcing



(Identifying new suppliers for a specific categoryof purchasing requirements using Internettechnology ).

e-tendering:(Sending requests for information and prices to

suppliers and receiving the responses of suppliersusing Internet technology ).

e-reverse auctioning:



(Using Internet technology to buy goods andservices from a number of known or unknownsuppliers).

e-informing:(Gathering and distributing purchasing

information)

e-market sites:

( Web-based ERP to open up value chains).



McDonalds E-Procurement System

McDonalds E-Procurement System is basically amain reason for their successful supply chainmanagement.

It is so efficient that it provides the backbone notonly to all the logistics but the whole McDonaldssupply chain management.



How McDonald’s Uses E-procurement Systems

Emac Digital:

(Internet procurement site designed forMcDonald's Corporation's 27,000 franchises )

Emac Digital Company is E-Procurement website which is jointly owned by McDonalds and Accel-KKRInternet Co.



It is a procurement hub launched in 2001 allow all ofMcDonald's franchises across the globe to buyeverything needed to run their restaurants.

Fromuniform to HamBurger



Aside from being faster and more convenient forfranchisees, the procurement site also allow businessowners to buy supplies and materials at a discountedprice, ultimately reducing costs for McDonald's.

E-Procurement allows 85% cut in costs according toMcDonald’s supply chief Edwards.



Benefits For the Suppliers

McDonald’s works with two types of suppliers.

Major SuppliersSmall Suppliers



Major

SupplierSmall

Suppliers

EmacDigital



McDonalds E-Procurement Model

Place Orders Supply Received

Emac Digital

GlobalFranchises

Suppliers

Logistics



IP (Internet protocol) technology:

An IP connection would also open up a host of

options for McDonald's to collect data from itsconsumers. Internet connections for kids at storelocations would not be out of the question. Thequicker connection would also allow McDonald's to

track purchases and offer customer loyalty programs.



it will connect headquarters with stores.

Replacing traditional and old Dial-up Networking. McDonald's can collect data much faster



Working on SRM (suppliers relationshipManagement) with Oak Brook.

Developing Next generation e-procurement softwarePOS.

So, McDonald’s e-procurement system is benchmark

while provide final service to the customers formsuppliers to customer’s dish.



Ahmed Ishtiaque

McDonalds Logistics Standards




Distributor Quality Management Process

Operations and Customer Relations

Quality Control (HACCP/QIP)

Cold Chain Standards Hygiene Regulations

Product Handling Standards

Emergency and contigency plan




Risk and Crisis management

Continuous unannounced internal and 3rd partyaudits for DCs result in superior quality scores

regularly



INFORMATION

Efficiency

Responsiveness



Transportation

The DCs have focused all their resources to meetMcDonald's expectation of 'Cold, Clean, and On-Time Delivery' and plays a very vital role in

maintaining the integrity of the productsthroughout the entire 'cold chain'.



Transportation

The DC receives items from different parts of thecountry.

These items are stored in rooms with different

temperature zones and are finally dispatched to theMcDonald's restaurants on the basis of theirrequirements.



Transportation

The company has both cold and dry storagefacilities with capability to store products up to -22º C as well as delivery trucks to transportproducts at temperatures ranging from roomtemperature to frozen state.

The specially designed trucks maintained thetemperature in the storage chamber throughout

the journey.



McDonalds Distribution systems

McDonald uses three types of Distribution strategy

Franchising

Licensing

Joint ventures

I will discuss them briefly




FranchisingMcDonald require franchising from countries on conditions like this

The entrepreneur should be trained.

45000$ in franchise fees which is higher than other fast-food companies

Total investment would range from 1 million to 1.8 million

After setting the entrepreneur will have to pay 12.5 % as royalty tax

Contract wll be for 20 years

Cash liquidity should be around 250000




Licensing The Lakson Group of Companies is one of the largest and most well-

diversified companies in Pakistan with a range of foreign affiliated partnersthat include Tetley Tea, Colgate-Palmolive, McDonalds, Kraft Foods andPhillip Morris International.

Colgate-Palmolive Inc.:

30% equity ownership in Colgate- Palmolive (Pakistan) Limited McDonald’s Corporation: Siza foods (Pvt.) Limited holds an exclusive Country Development License

for Pakistan. Kraft Foods: Holds an exclusive licensing exclusive Country Development License for

Pakistan. Tetley Overseas Holdings Ltd: 50% equity ownership in Tetley Clover




Samsung Corby Crave Hit McDonald’s: Samsung ElectronicsCompany Limited, as a joint promotion with McDonaldsPakistan, has introduced the latest Samsung Corby Series mobile

phones at McDonald’s outlets across Pakistan. McDonald’scustomers are provided with a chance to win this fabulouscellular product through participation.The youth oriented series is focused on interactivity and is lacedwith exciting features such as video, images, sound, music anddata sharing. The joint promotion aims to generate excitementamong the youth and providing them a feel of the touch phonesand boosting their comprehension.

Other than this McDonalds have license on Airports, Railwaysetc.



waqar saleem pashah




Joint venture GAM Corp (Private) Ltd is a joint venture company of McDonald’s

Corporation USA. Mc Donald’s is world’s leading Fast Food chainhaving over 30,000 restaurants world wide. Total strength of staff inPakistan is 1800 person. It has successfully opened 14 restaurants inPunjab.

Other than this “TOYS R US” is another joint venture



Thank you

Mcdonaldse Procurement

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