McDonald’s Supply Chain Process

Process Analysis
McDonalds is one of the most successful fast food restaurant chains. The quality of the service and the meals offered at the chain of restaurants is largely determined by the raw material supply chain. In order to guarantee high quality food, they have established examination of the same at various levels along the supply chain. The chain begins with the identified supplier when sourcing for the raw materials at various collection centers. The supplier must wait for the inspection of their supplies before it moves to the next level ("Suppliers and Purchasing", 2017). If the supplies are approved by the quality assurance officers of the company, they are moved to various centers for distribution.
It is the duty of the inspection officers to guarantee quality. They look out for such issues as adhering to the dedicated lines of production, formulas of production and storage facilities. The system at McDonald demands that a supplier audients the ingredients of their supplies. It also calls for the upstream supplies to take responsibility for to meet the high safety and quality standards expected by the company (Food Service Safety Standards McDonald Wholesale OR, 2017). If a supplier does not meet the expected standards, their supplies will be rejected by the inspection officers at the collection stage. The company has a policy that encourages purchase of their raw materials from the local producers as long as such producers meet he set standards. The organization monitors every activity of the supplier along a range of aspects including agrochemical rules, environmental considerations, social issues and animal welfare. The firm only makes purchases from producers who adhere to the government regulations and those of the European Union. They also collaborate with the supplies in an effort to ensure that their expectations are met, and for the purposes of establishing long term relationships with major suppliers. They also work to pay the invoices from suppliers as soon as possible. They constantly update the suppliers on changes made including sharing information on development opportunities that arise within the company for suppliers ("Suppliers and Purchasing", 2017).
Once the supplies are approved by the inspectors, they are moved to the distribution centers in refrigeration containers and stored in warehouses. Such materials are safely stored in the warehouse awaiting requisitions from the various restaurants. Replenishment is indicated by the DSR (The Demand Signal Repository) coming from the online platform that operates globally and used by Emac Digital; owned by McDonald. When the stocks in the various restaurants run low, the restaurant managers and the various operators in the warehouses are signaled (Intrieri, 2017). The managers receive replenishments from the warehouses after confirming the signals. The meals are prepared in small amounts. They are inspected before presentation. In other cases, the meals are only prepared after a customer makes an order. The chief chef inspects the meals after preparation. The chief chefs determine whether the food is worth serving the customers as guided by the brand standards. If the chef does not approve, they order for the preparation of another meal, and disposal of the one rejected.
If the chief chef approves the meal, it is then served to the customer; thus, terminating the supply chain process. The payment for the meal by the consumer practically terminates the transaction. Such parameters as Hazard Analysis and Critical Control Points (HACCP) help to ensure quality a quality inventory that is safe, the stringent protocol for inspection that guarantees quality products and the AIB International checks that steer our promise product management that is secure have been established (Intrieri, 2017).
Efficiency metric
McDonalds has also set Key Performance Indicators for its distribution partners. The assessment of the DCs is based on various factors including efficiency of administration, the number of managed cases per hour of work, efficiency of the warehouse, cases handled per trip in during transportation, utilization of truck and overtime calculated as a percentage of the sum of the hours worked. The factors mentioned are crucial indicators of the performance of the company. They also analyze effectiveness of various processes along the supply chain in an effort to realize the company objectives (Intrieri, 2017). The primary objective of the supply chain is maintaining a minimal lead time and steer the management towards realizing high cash circulation levels from the customer to the company and, finally, to the employees.
Improvements
In order to reduce the lead time of the supply chain, the company should get rid of some of the redundant processes along the chain flow chart. The triple quality check needs to be done away with (Gale, 2017). Safety programs also exhibit a lot of redundancy. They include AIB International Audits, HACCP and the rigorous protocol of inspection. These three serve the same purpose at the collection point inspection, quality control and the inspection before a customer is served.
It is also important to relook at the value of the various checks; guided by a review with input from the whole team. If such steps are taken, the lead time will be reduced. Usually, it renders inspection and checks more significant and emphasizes the essence of controls (Intrieri, 2017). Nevertheless, it should also be noted that application of Lean to business has the potential to reduce the resiliency of the controls; that is, if it is not done right. Therefore, getting rid of the inspection points must be accompanied by a strict control environment.
Summary
The supply chain flowchart for McDonalds shows a supply chain that is lean. There is room to make changes to improve it though, through getting rid of redundant inspection points. Emphasizing quality control among the global partners of the company to manage, secure and optimize their chain of supply would reduce the lead time and raise the number of customers that they serve each hour Gale, 2017). Further, wastes that are incurred from unnecessary transport trips, movements, waits overproduction and over-inspection will be minimized. Conscientiousness bout the running of the activities simplifies workflow analysis by the management and points out potential channels of getting rid of waste. Furthermore, it then becomes easier to identify points where logistical methods would be used to get rid of some of the processes without veering off the objectives of the firm. Food safety and control can be realized via a highly controlled wok setup without inspection processes and steps that are redundant.

References
Food Service Safety Standards | McDonald Wholesale | OR, W. (2017). Food Service Safety Standards | McDonald Wholesale | OR, ID, WA & CA. McDonald Wholesale. Retrieved 28 December 2017, from https://www.mcdonaldwhsl.com/products/safety/
Gale, S. (2017). McDonald’s USA: A Golden Arch of Supply Chain Food Safety. Food Safety Magazine. Retrieved 28 December 2017, from https://www.foodsafetymagazine.com/magazine-archive1/februarymarch-2006/mcdonalds-usa-a-golden-arch-of-supply-chain-food-safety/
Intrieri, C. (2017). 9 Steps to Establish the Lean Supply Chain. Transportation Management Company | Cerasis. Retrieved 28 December 2017, from http://cerasis.com/2015/05/06/lean-supply-chain/
Suppliers and Purchasing. (2017). Mcspotlight.org. Retrieved 28 December 2017, from http://www.mcspotlight.org/company/publications/mcfact_section5.html
What Standards Do We Use When Selecting Suppliers?:: McDonald's Hong Kong. (2017). Mcdonalds.com.hk. Retrieved 28 December 2017, from http://www.mcdonalds.com.hk/en/food/learn-more-about-mcdonalds-food/how-much-do-you-know-about-our-food/what-standards-do-we-use-when-selecting-suppliers.html