Transportation & Logistics International - Winter 2017 - 82
WAREHOUSING & PACKAGING
ture issues including the supply chain
so those franchisees can dedicate
themselves to their restaurants.
"Our team is providing services to
support those 36,000 restaurants mostly in the area of strategy," Stewart says.
"They're independent so we have to
work closely with them and make sure
whatever services we're providing are
aligned with what their needs are."
The way McDonald's approaches its
supply chain follows the company's
three-legged stool philosophy. If one
leg becomes wobbly, the entire seat
topples over. Stewart says the three
legs of McDonald's are suppliers, company leadership and employees, and
franchisees. Each leg must be financially sound and follow good strategies
to support the weight of the entire
system. "Working together we can
develop strategies that are customer-centric," Stewart says.
Between its corporate-owned stores,
and regional and corporate offices
worldwide, McDonald's has approximately 420,000 employees. In addition, McDonald's franchise-owned
locations employ tens of thousands
more people across the world.
But that still doesn't reveal the
entire reach of McDonald's. The company's supply chain is driven by 3PLs
such as Martin Brower, which has
8,000 employees itself.
3PLs are the backbone of McDonald's supply chain. The company
has only a limited number of its own
dedicated logistics personnel, most of
whom are focused on strategy development. Each market has a person
responsible for deploying those supply
chain strategies, but actual execution
comes down to the 3PLs.
For each region where it has restaurants, McDonald's has a supply chain
strategy and logistics partners in place
to best support its franchisees. The
TLIMAGAZINE.COM WINTER 2017
// The company sees high-growth markets
in areas were McDonald's is known but still
expanding, such as in China and Poland.
"Our goal and our vision
is really to become a
modern and progressive
burger restaurant that
delivers a contemporary
for fresh food."
needs of the local supply chain can
change depending on the maturity
of the market. The United States, for
example, is a market all of its own, but
other countries are segmented into the
international lead market, high-growth
market and foundational market.
The international lead market
includes nations such as Canada,
Australia, France, the United Kingdom
and Germany where the McDonald's
brand is established. Revenue from
those countries is strong, but the
opportunity for sales growth is not as
significant as in younger markets.
The high-growth markets are areas
where the McDonald's brand is known
but still expanding, such as China, the
Netherlands, Switzerland and Poland.
The largest opportunity for growth lies
in the last segment. The foundational
markets consist of 80 countries primarily in Asia, the Middle East, Africa
and Latin America, which are home to
60 percent of the world's population.
McDonald's can't create a strategy
for each of those markets and regions
all on its own, so the company engages
its logistics providers and suppliers
to help determine the most efficient
way to build a supply chain. Take the
company's ocean freight strategy. McDonald's formed a global ocean freight
council made up of suppliers and
logistics companies to provide insight
into McDonald's supply chain strategy
and help the burger chain optimize its