Question

Leveraging Supply-Chain and Logistics Management

Logistic Chain Management: A marketing channel relies on logistics to make products available to consumers and industrial users. Logistics involves those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost. The performance of these activities is logistics management, the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption to satisfy customer requirements.

Supply Chain Management is the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to consumers. An important feature of supply chain management is its application of sophisticated information technology that allows companies to share and operate system for order processing, transportation scheduling, and inventory and facility management.

Required: Company name- McDonald’s. How could/would the following company use Supply Chain Management and Logistics Management to satisfy their customers? What are some of the trade-offs associated with their choices? Detail your thoughts on of the companies. Write 180 words.

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Answer 1

McDonald’s is quite an established brand in the fast food segment of food industry. Supply chain management is one of the major processes which helps in maintaining the competitive edge of the company in the fast food market. SCM incorporates all processes ranging from sourcing and procurement, quality management and logistics management. The principles of SCM are adopted so that the operations of the outlet run smoothly on a daily basis. Also SCM facilitates cost effectiveness of the company by enhancing the overall value provided to the customers. JIT strategy is incorporated to manage the daily demands of the customers. JIT or Just in Time manufacturing system works with the objective of keeping the inventory level minimal. This objective is met by conducting production to meet customer orders.

A company opts for JIT manufacturing if it wants to meet the following objectives:

·       Production of goods must happen after customer confirmation of order

·       To keep manufacturing cycle time minimum

·       To ensure quality adherence in production

·       To minimalize waste

·       To facilitate customization of products

EOQ of the company is maintained by focusing on:

·       Low ordering costs

·       High holding costs

The company employs the principles of contract logistics in logistics management. Keystone Distribution works as the 3PL for McDonald’s. All the purchase and procurement for the company is handled by this contractor company.

https://davidkigerinfo.wordpress.com/2016/03/24/mcdonalds-one-of-the-best-supply-chain-management-in-the-world/

https://supplychainx.highjump.com/supersized-supply-chain.html

https://edisciplinas.usp.br/mod/resource/view.php?id=2326402