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    The Role of Logistics in Supply Chain Management

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    Christine Gomez
    McDonald's logistics system begins with producers of raw materials who supply food, paper products, and technological devices. Materials are ordered through a central system and shipped directly to each restaurant. The supplier is responsible for logistics activities like warehousing, shipping, and delivery to get supplies to restaurants fresh and ready for use. Managing logistics efficiently can lower costs significantly by controlling inbound freight and optimizing inventory levels. To improve the logistics function, McDonald's should focus on order-to-delivery lead times, enhance communication between stakeholders, and leverage modern technology to ensure proper delivery conditions.

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    The Role of Logistics in Supply Chain Management

    Uploaded by

    Christine Gomez
    41 views6 pages
    McDonald's logistics system begins with producers of raw materials who supply food, paper products, and technological devices. Materials are ordered through a central system and shipped directly to each restaurant. The supplier is responsible for logistics activities like warehousing, shipping, and delivery to get supplies to restaurants fresh and ready for use. Managing logistics efficiently can lower costs significantly by controlling inbound freight and optimizing inventory levels. To improve the logistics function, McDonald's should focus on order-to-delivery lead times, enhance communication between stakeholders, and leverage modern technology to ensure proper delivery conditions.

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    McDonald's logistics system begins with producers of raw materials who supply food, paper products, and technological devices. Materials are ordered through a central system and shipped directly to each restaurant. The supplier is responsible for logistics activities like warehousing, shipping, and delivery to get supplies to restaurants fresh and ready for use. Managing logistics efficiently can lower costs significantly by controlling inbound freight and optimizing inventory levels. To improve the logistics function, McDonald's should focus on order-to-delivery lead times, enhance communication between stakeholders, and leverage modern technology to ensure proper delivery conditions.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    41 views6 pages

    The Role of Logistics in Supply Chain Management

    Uploaded by

    Christine Gomez
    McDonald's logistics system begins with producers of raw materials who supply food, paper products, and technological devices. Materials are ordered through a central system and shipped directly to each restaurant. The supplier is responsible for logistics activities like warehousing, shipping, and delivery to get supplies to restaurants fresh and ready for use. Managing logistics efficiently can lower costs significantly by controlling inbound freight and optimizing inventory levels. To improve the logistics function, McDonald's should focus on order-to-delivery lead times, enhance communication between stakeholders, and leverage modern technology to ensure proper delivery conditions.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 6

    THE ROLE OF LOGISTICS

    IN SUPPLY CHAIN
    MANAGEMENT IN MC
    DONALD
    The logistics system begins with producers of the raw
    materials. For McDonald's, this includes food
    producers, producers of paper products, and producers
    of technological devices and software. From the
    producers, materials are ordered via a central ordering
    system, and are shipped directly to each restaurant.
    The supplier is responsible for several logistics
    activities. Warehousing, shipping, and delivery are
    among the most critical. The company works closely
    with McDonald's and understands the company's
    values, when it comes to getting supplies to
    restaurants, fresh or in good condition, and ready to
    use for serving consumers.
    ADVANTAGE AND
    DISADVANTAGE OF THE
    LOGISTICS FUNTION IN
    SUPPLY CHAIN
    Cost Leadership
    McDonald’s buys supplies in bulk and, to get lower prices
    McDonald’s leases land and property they own to franchises
    McDonald’s is such a well known brand name and Ronald
    McDonald such a well Strategic/predatory customer selection
    Mc Donalds purposefully aims their brands at kids who can
    be taught to over-eat fast food and, in addition, serves things
    like ultra-fatty sauces
    Cost Savings
    Managing logistics with efficiency will give a company control
    over inbound freight, keep inventory at optimal levels,
    organize the reverse flow of goods, and utilize freight moves
    on the proper transportation modes all of which can cut costs
    significantly. In fact, inbound freight can account for about
    40% of general supply chain costs.
    ACTIONS TO TAKE TO
    IMPROVE THE LOGISTICS
    FUNCTION IN THE
    ESTABLISMENT
    • Focus on order-to-delivery lead time and plan
    accordingly - Customer satisfaction is the end goal of
    any logistics chain since it affects how your company
    is viewed. The time it takes from order placement to
    delivery is one of the most crucial aspects of the
    customer experience and the primary deciding factor
    in their opinion of your company.
    • Communication network - must be installed to
    enhance interaction between the stakeholders. It is
    through such interactions that new ideas can be
    shared. Monitoring of the transportation process will
    work effectively if measures to control it are in place.
    • Modern technology may also play a role in ensuring
    that goods get delivered in proper conditions. If a
    mistake happens in this structure, several goods will
    have to be discarded. The firm may register great
    losses on such accounts.

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