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DEFINATION of SCM
The management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole.
BRIEF INTRODUCTION
McDonalds Corporation is the worlds largest chain of hamburger fast food restaurants. A McDonalds restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The corporations revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonalds has become emblematic of globalization, sometimes referred to as the McDonaldization of society. The Economist newspaper uses the Big Mac Index: the comparison of a Big Macs cost in various world currencies can be used to informally judge these currencies purchasing power parity.
REASONS
As we know, the enterprise style of McDonald’s can be concluded as happiness. Many people from different countries have bought the products of McDonald’s. The food of McDonald’s indeed please the consumers all over the world. McDonald’s developed its business at an incredible speed in the past three decades. According to a survey of U.S. Securities and Exchange Commission, there are 32737 branches of McDonald’s in the world, while nearly 1500 of the branches locates in China. Meanwhile, the retained profit of McDonald’s was 1.41 billion dollar during the second quarter last year.
Secondly, the management principle of McDonald’s is QCSV (Quality, Service, Cleanness Value). Besides the restaurants and delicious food, a perfect, comprehensive and powerful logistics system is a must for McDonald’s. The logistics mode of McDonald’s is called Third-Part Logistics. The 3PL, which is short for Third-Part Logistics, makes significant contribution to McDonald’s SCM. Fresh and high-quality raw materials could be transported to every branch in the appropriate time.
3PL service providers are companies who provide a range of logistics activities for their clients. T
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