In offering value, McDonald’s concentrated on offering a broad variety of products at a range of price points that would appeal to price sensitive customers, such as the dollar menu in the US, as well as those willing to pay for premium products-Measuring the price driver involved improvements in value-for-money scores and restaurant margins 5.

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• McDonald’s has a complex global supply chain with thousands of direct suppliers who employ over a million people in over 100 countries. With a supply chain of this scale, we have an important responsibility to only do business with suppliers that respect the fundamental rights of their employees and partners.
• By the end of 2020, all of McDonald’s global beef sourced for McDonald’s restaurants will support deforestation-free supply chains. 1 Progress As of the end of 2019, 92% of McDonald’s global beef supply is verified as compliant with our Commitment on Forests.

Logistics partnerships and tracking technologies allow McDonald’s to take the burden off its franchisees and assure reliable supply.

By Tim O’Connor

Customers may have long wanted to enjoy an Egg McMuffin at lunch, but it wasn’t until April 2015 that McDonald’s began seriously considering ending the tyranny of the 10:30 a.m. breakfast menu cutoff. When the company announced to cheers that it would begin around-the-clock service of its most popular breakfast items later in 2015, the company’s supply chain team had to figure out how to make the sudden expansion of its menu possible.

The logistical challenge of the all-day breakfast menu was further complicated by an outbreak of avian influenza that led to an egg shortage across the United States. The egg is kind of a key ingredient of the Egg McMuffin and a lot more people were going to be ordering them if they were available at any time, so McDonald’s worked with its trusted suppliers to secure a sufficient quality and quantity of eggs. Meanwhile, the company needed to procure and deliver breakfast equipment such as toasters to prepare restaurants for the looming menu change.

Rolling out all-day breakfast to all of McDonald’s 14,000 U.S. restaurants with only seven months of lead time was a daunting task. But rather than viewing its size as a barrier, the company used it to leverage supply chain agreements and enable it to scale up the production of breakfast items and equipment from suppliers.

Despite those hurdles, the smooth launch on Oct. 6, 2015 was a testament to McDonald’s efficient supply chain and its customer-obsessed philosophy. “At the end of the day, as a restaurant you have to be prepared to offer menu items when customers want them, not when it’s convenient to you,” says Bob Stewart, corporate vice president of strategic supply chain services.

McDonald’s was rewarded with a reversal of its lagging sales in the United States. The fast-food giant reported a 1.3 percent increase in same-store sales for American locations in third-quarter of 2016. “We think that was fairly significant in compelling the U.S. in supporting our turnaround strategy,” Stewart adds.

Supporting Supply

Stewart’s career at McDonald’s began 22 years ago in the logistics area. He was one of the founders of the company’s global ocean freight strategy to use third-party logistics providers (3PL) to procure and manage carrier operations.

More than 80 percent of McDonald’s 36,000 worldwide locations are owned by independent franchisees in more than 100 countries. McDonald’s corporate focuses on big-picture 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, it is estimated that McDonald’s franchise-owned locations employ 1.5 million people around 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 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. How to update nikon transfer for mac os x 10.13. 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 network while sharing best practices among the council members.

Teamwork is necessary even among competing logistics providers. McDonald’s moves the equivalent of 70,000 twenty-foot shipping containers annually. If there are delays at a port or another issue arises, the company can’t just wait for a resolution. McDonald’s logistics councils develop contingency plans to account for those situations and create sharing agreements so that products can continue to flow to restaurants. “The team [the ocean freight council] works on contingencies to make sure we have a strategy in place that’s executable so we don’t get caught in a solution where we don’t have an assured supply,” Stewart explains.

Assured Supply

What would McDonald’s be without a burger patty or its classic French fries? Every region may have its own supply chain challenges, but ultimately, Stewart’s job is to make sure no restaurant ever runs out of a food item. The central strategy of the logistics division is to not only deliver value, but also ensure the supply pipeline is linked to consumer demand.

Shorter supply chains create better consistency. Which is why McDonald’s typically sources as much product as possible within each market. Its 3PL partners then manage the freight to leverage McDonald’s scale from suppliers inbound to its 200 worldwide distribution centers. From there, fresh and frozen products are consolidated into shipments and delivered to restaurants an average of 2.5 times per week.

Restaurants risk having a shortage of a food item if the truck is late or a product is under-ordered, so each delivery must contain everything it needs. At the same time, McDonald’s wants to avoid excess stocking and wasted products. To balance those requirements, the company and its 3PL providers implemented traceability and visibility into its supply chain. McDonald’s can track the location of every shipment, view what products restaurants have in stock and measure demand for food items.

The integrated system then produces proposed order amounts for each restaurant, which the operator can review and adjust. “That order proposal is meant to ease the burden on the restaurant manager so the restaurant manager can focus on the customer,” Stewart says.

The usefulness of that visibility extends throughout the entire supply chain. Just as a restaurant manager can make more efficient ordering decisions, a supplier can look at demand and adjust its production schedule accordingly. The end-result is a transparent supply chain made more efficient by linking shipping and production to real customer purchases.

/download-android-operating-system-for-htc.html. Contemporary Customers

Those kinds of insights into the supply chain are an example of how McDonald’s is incorporating cutting-edge technologies to improve its operations behind the scenes, but the company is also finding ways to upgrade the guest experience. “Our customers have changed,” Stewart says. “What they want today is different than what they wanted 20 years ago.”

An example of that change is in how guests define convenience. In the past, McDonald’s thought of convenience as being in the right location for the customer. But today, the word encompasses everything from the ease of ordering to having accessible information on where the company sources its food.

As part of that contemporary strategy, McDonald’s is now testing self-order kiosks, digital menu boards, phone apps and table service at restaurants. “Our goal and our vision is really to become a modern and progressive burger restaurant that delivers a contemporary consumer experience for fresh food that’s delivered fast,” Stewart says.

He believes the supply chain is an enabler of the company’s contemporary strategy. Setting up a system to anticipate demand more effectively enables the supply chain to be more efficient by reducing the miles traveled and the number of deliveries that must be made.

Stewart calls the concept an “efficient, assured supply” – a promise that McDonald’s will help ensure the products its franchisees need are available in the most cost-effective way possible so that franchisees can focus on their end of the business. “Our ideal vision would be everything is there when they need it and they don’t have to worry about it,” Stewart says.

Stewart says the integration of the supply chain will never be complete, but the next evolution of the strategy will be to take that digital information and build upon it to create more demand. McDonald’s is already piloting programs with that goal in mind, such as an ordering system that allows for more customization of menu items.

Increased visibility will also enable the company to react more quickly to opportunities. It used to take 30 days to create and execute a marketing plan, such as a buy-one/get-one offer, around a local event. But the integrated supply chain has made it possible for McDonald’s to increase orders or even direct inventories to implement promotions sooner.

Eventually, Stewart believes the technology will allow for complete transparency into McDonald’s inventories and supply chain. “That’s the future I think is going to be a challenge for us,” he says. “But we’ll meet it.”

Let's face it, no one goes to McDonald's expecting to eat a healthy and nutritious meal. We all know that the food from the Golden Arches is full of fat and laced with sugar. We all remember watching Morgan Spurlock completely transform his body for Super Size Me. By eating only McDonald's food for 30 days, he gained 25 pounds and added serious amounts of fat to his liver and bloodstream. But, like any restaurant, some options are better than others. If you're in the mood to indulge (or in the middle of a crazy with absolutely no other options) there are some foods that won't break the calorie bank. There are also some that will completely wreck your diet from a mile away — and they might not all be the menu items you would expect. Here are some of the biggest offenders, as well as some of the friendlier options.

Southwest buttermilk crispy chicken salad

Think you're being sensible by skipping the double quarter pounder and going for a salad with chicken? It's pretty amazing how many calories McDonald's (and a lot of other restaurants) can cram into an innocent salad. This salad packs 520 calories and 25 grams of fat. It also has 46 grams of carbs! You might think you're going low-carb by skipping everything served on a bun, but this salad and dressing are loaded with hidden carbs (also known as sugar). To cut some of that fat, opt for grilled chicken instead of crispy. The southwest grilled chicken salad has about 350 calories, 11 grams of fat, and only 27 grams of carbs.

Skip the soda

It truly doesn't matter if you're at McDonald's, a fancy restaurant, or the grocery store. It's time to start skipping the soda. It is just straight calories and sugar. A small Coke on the McDonald's menu has 150 calories and a whopping 42 grams of carbs. Add this to a typical McDonald's meal, and you are well over the recommended daily amount of carbs (which is about 225-325 grams per day). The sweet tea is a little better at 90 calories and 21 grams of carbs. Opt for a cold water or unsweetened iced tea instead if you want to avoid major damage.

Shamrock shake

I'll admit that the shamrock shake is downright irresistible every March. However, this winter I think I'll be able to avoid it after doing this research. One 16-ounce shake contains 550 calories and 13 grams of fat. And if there's one thing the shamrock shake has in abundance, it's sugar. It's loaded with 82 grams of sugar, which Mary Hartley, a registered dietitian, told Shape is 'like eating around six slices of bread all at once.' The American Heart Association recommends men limit their sugar intake to 36 grams per day and women no more than 24 grams per day.

Milkshakes

It probably isn't fair to single out the shamrock shake. Really, no milkshake on the McDonald's menu is safe. The regular menu shakes range in calories from 490 in the small vanilla shake all the way to 530 in the small chocolate shake. And if you're watching your carbs, stay away from these — they all have around 80 carbs per shake (and that's just for a small!). They're all pretty high in sugar too: Vanilla can technically be considered the 'low sugar' option since it comes it at only 59 grams (still about twice your daily limit), compared to chocolate's 74.

McCafe Frappes

The McCafe drinks are McDonald's version of coffee house favorites like pumpkin spice lattes and caramel mochas. Pretty much all of these drinks are loaded with calories and sugar, but the frappes (frozen coffee drinks) take it to a new level. One medium caramel McCafe frappe has 510 calories, 21 grams of fat, and 72 grams of carbs. Those are some big numbers for your morning coffee.

Hotcakes and sausage

An order of hotcakes and sausage contains 790 calories, 35 grams of fat, and 103 grams of carbs. This epically disastrous McDonald's favorite meal of hotcakes and sausage is the health-conscious person's worst nightmare. It doesn't take much to realize that combining sugar-laden bread with sodium-heavy meat does zero favors for your waistline, not to mention your poor heart. Those numbers factor in the whipped margarine and syrup, but keep in mind that the numbers just climb higher for every extra packet you add.

If you really feel like having something sweet in the morning, try ordering the fruit and yogurt parfait instead. With 150 calories and 2 grams of fat, it is subtly sweet, rich, and nourishing all at once. While it is a decidedly on-the-run kind of breakfast, this menu item gives you a chance at starting the day right.

Buttermilk crispy chicken sandwich

Chicken sandwiches are hard to turn down. We get it. McDonald's buttermilk version has a whopping 620 calories, 29 grams of fat, and 63 grams of carbs. Yes, chicken that's been breaded and fried tastes good, but you probably know it's not good for you to consume so much grease. Combined with fatty mayo and oversized buns, this meal is high in calories and saturated fat.

Bacon, Egg & Cheese McGriddles

While McDonald's McGriddle sandwiches may be tempting, try not to succumb to their fatty allure. Sure, in a perfect world we ought to be able to consume greasy bacon, eggs, cheese, and plenty of butter served on cakes with zero repercussions. In the real world, the combination of these high cholesterol, sodium-laden, fat heavy processed ingredients are sure to kill any diet. Moreover, the effects on your heart aren't too great either. With 52 percent of the daily value of sodium, 195 milligrams of cholesterol, and eggs that contain five ingredients additional to, um, just eggs, you're better off saying no. Your heart and your waistline will thank you.

Sausage breakfast sandwiches

If you're hungry for a breakfast sandwich, save yourself some trouble and skip all of the ones made with sausage. One sausage biscuit with egg has 530 calories, 34 grams of fat, and 38 grams of carbs. This sandwich might sit a little heavy in your stomach for first thing in the morning. Here, the equivalent of four sausage links are sandwiched between greasy, processed bread. High in saturated fat, this is one meal you want to avoid the next time you're hitting up your local McDonald's. Trust me. The aftermath ain't pretty.

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The sausage McMuffin with egg might sound like a healthier option, but it's not actually much better. Clocking at 480 calories, 30 grams of fat, and 30 grams of carbs, it's still a breakfast that'll start your day off on the wrong foot.

For a lighter and healthier alternative to the compact heart attack of the sausage biscuit with egg, opt for the Egg White Delight McMuffin. You get to enjoy the feeling of eating a breakfast sandwich at less than half the calories and fat. With 250 calories and 10 grams of fat, this satisfying meal fills you up but doesn't weigh you down.

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World-famous fries

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A medium-sized portion of McDonald's beloved fries boasts 340 calories, 16 grams of fat, and 44 grams of carbs. While it may seem like a sin not to place an order of fries to go along with your burger, try to resist the societal pressure. For vegetarians who think this go-to side dish is safe for consumption, think again. The fries contain natural beef flavor. As if that weren't disturbing enough, dextrose (sugar) is the third ingredient listed on the company's website.

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While they are indeed less glamorous than the world-famous fries, order a side of apple slices and you'll feel great about your life choices — at least the ones you make at McDonald's. With 15 calories and zero fat, this crispy, naturally sweet fruit really is good for you.

So where does all this leave you?

The truth is grim. Most of the items on McDonald's menu are terrible for anyone concerned with general healthfulness. That said, you might find yourself at times with no other choice than to duck into a McDonald's for sustenance. While that is a sad occurrence, the good news is that there are some McDonald's foods you can order that won't make you feel disgusting afterward.