Analysing Mc Donald’s Supply Chain Management - 1742 Words

Supply Chain Management according to Tom Mc Guffog is Maximising added value and reducing total cost across the entire trading process through focusing on speed and certainty of response to the market. Supply chain management is one of the important area which requiring strategic planning in a business enterprise. Planning and decision making are required right from the production of goods till the goods reach the ultimate consumers in the most cost effective and timely manner. If a firm is able to manage its supply chain efficiently, it can increase its customer satisfaction because SCM ensure the deliverance of fast and quality products to customers. Supply chain includes all the activities from the conversion of raw materials, one end†¦show more content†¦8. Variety: supplying all the items listed on the menu is also a challenge, for example some of the items offered by Mc Donald’s is Blueberry Banana Nut Oatmeal but Mc Donald’s in itself is a very big marke t, growing blueberries and keeping the supply large enough to meet the demand of all the stores is not possible at all. Specific and Practicable Recommendation for action so as to improve the efficiency or effectiveness of the Supply Chain After discussing the supply chain issues faced by a restaurant we got to a conclusion that management of inventory plays a key role in the management of supply chain. The management is required not only of finished goods but also of raw material and work in process. Historically it has been proved that companies which are able to generate more cash flows with the help of supply chain have a higher stock price multiples than its competitors even if the earnings per share and growth rates are similar in the companies (CSCO Insights). Here are four strategies which will help organizations manage their inventory: 1. Management of safety stock: most of the companies use simple methods to determine the levels of safety stocks at different stages of supply chain for example use of SKU segmentation or four classification but these are not sufficient for today’s times. The most common of the process improvements is to use many more attributes associated with each SKU to in effect create a much larger number of itemShow MoreRelatedManaging Inventory Of A Supply Chain Management3066 Words   |  13 PagesKRAIHAN 8 HARLEY DAVIDSON_ KOMGROB KRAIHAN 8 CONCLUSION_ TUAN UYEN NGUYEN 8 REFERENCE: 9 Introduction The most important part in supply chain management is managing inventory as company operation tries to minimize cost from supplier, manufacturing, and production. Regarding to inventory, the management accounting must have understand the basic of inventory management. There are a numbers of techniques including: ABC system, EOQ model, TQM, and JIT system. All those several system are relating in