Mcdonald s supply chain management case study

Raw material production, processing, and distribution. “Among other things, this means working with suppliers to innovate and implement best practices for sustainable ingredients, requiring that our suppliers protect human rights in the workplace, and safeguarding food quality and safety through best practices in animal health and welfare. ”Steps that McDonald’s has taken to strengthen supply chain sustainability, include partnerships with nongovernment organizations (NGCs), a Supplier Code of Conduct, and increasing supplier capacity in emerging economies. Sustainable logistics through system-wide continuous improvements in logistics efficiency, including the increased use of biofuels; Waste; It’s about sharing vision and collaboration to achieve a long-term culture of sustainable social and environmental change—and how they go about it with their partners. About the Author: Concerns also center on how labor standards and working conditions can best be monitored and enforced throughout the chain. These are business processes and serious issues that CSR plans must account for clearly and realistically. Sustainability report: “We are committed to working toward a tomorrow where quality food and balanced choices are accessible and affordable to all. It’s apparent that for strategies to be taken seriously involving Supply Chain Management (SCM) and Business Process Outsourcing (BPO) a company’s Corporate Social Responsibility (CSR) plan must be an integral part.

Animal Health and Welfare; The CSR report says: “By sourcing our ingredients and packaging sustainably, we aim to create value for our business and society. Land and Biodiversity; This mentality of joint ownership allows us to work as one efficient organization with our suppliers, planning for the future and adapting to the present in a cohesive and integrated way, ” James adds. Traditional supply chains can crack under the pressure of unforeseen political, environmental, or competitive changes, but the McDonald’s “three-legged stool” philosophy and cooperative approach can absorb the shocks produced by the unforeseen while quickly adapting to frequently changing demands, specifications, and volumes. What is noteworthy along the McDonald’s CSR path is not sustainability goals this year or next, and what the companies can do by themselves: Where the food we serve is sustainably sourced from thriving farms. They know that suppliers need to be brought into the corporate sustainability discussion in real ways, not just as P. R. We are committed to doing what we can to help protect oceans and other valuable ecosystems, promote resource efficiency, and support the economic viability of farming, fishing and responsible land management so that resources are adequately available for generations to come. ”In addition, the company oversees the three Es at each level of its supply chain: Ethics, environment, and economics, ” said Jose Armario, executive vice president, McDonald’s Global Supply Chain, Development Companies are catching on to the fact that their supply chains must be anticipatory, adaptive and environmentally aware to be sustainable.

Frosting. They must do CSR right and would do well to emulate the approach of companies who employ the Vested ® shared principles of trust, collaboration and flexibility. Kate Vitasek is an international authority for her award-winning research and Vested ® business model for highly collaborative relationships. Community Impact and Economics. “Innovation is key to our CSR and sustainability journey, and McDonald’s suppliers have an impressive track record of innovating for what we call sustainability’s three Es: Just look at the huge and ongoing work regarding human and labor rights that the apparel and footwear industry is doing to correct unsafe, low-pay, sweatshop conditions that have come to light recently in countries such as Bangladesh, Vietnam and China. Driven by globalization, supply chains are rapidly evolving and gaining in complexity across every industry sector, and the vendors in those supply chains are often a moving target as multinational corporations search for low cost suppliers. Fortunately, there is good news: Where environmental protection and efficiency are universal. Franchising. James said it’s flexibility and resilience based on trust. McDonald’s deeply-ingrained culture for long-term, win-win relationships with suppliers dates back to its inception, when founder Ray Kroc established a culture of trust and loyalty. In May McDonald’s issued its which honored 36 suppliers and 51 projects that “represent real innovation toward a more sustainable supply chain. ” McDonald’s received 585 submissions, nearly 40 percent more than for the previous “Best of” report. McDonald’s executives and industry experts recognized sustainable accomplishments across eight platforms: McDonald’s is one case in point. McDonald’s“From my perspective, the heart of an outstanding supply chain is trust and transparency, features that contribute to natural resilience and provide a level of nimbleness not possible in more guarded systems, ” says Kurt James, V. P. Human Health and Welfare;

It has initiated supply chain goals and protocols for measuring, identifying and scaling sustainable beef production; Where people from all walks of life are valued for their unique contributions to a shared global community, ” says Don Thompson, McDonald’s president and CEO, in the report. These are not mere words: Sustainable sourcing is vitally important to McDonald’s and its supply chain. Of supply chain, McDonald’s Japan. James said the McDonald’s supply chain is designed to be “efficient, adaptive and collaborative, ” traits that have enabled the company to enter new markets at a scale and pace that is unmatched by its competitors. “We talk about the supply chain at McDonald’s as a shared system, rather than as our system. Water; All of the moving parts must work together in an ethical and socially responsible way. This is especially true for service provider, IT outsourcing and supply chain relationships. McDonald’s approaches supply chain management through the three Es—and they are the theme of McDonald’s 2012-2013 corporate social responsibility Her work has led to five books, including:   , and . A faculty member at the University of Tennessee, World Trade Magazine named her as one of the “Fabulous 50+1” most influential people impacting global commerce. Climate Change and Energy; Promoting environmental best practices at supplier facilities through a Global Supplier Performance Index and the Supplier Code of Conduct. The resulting system is one of unparalleled connection, collaboration, and mutuality. Mcdonald s supply chain management case study.