McDonald’s

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McDonald’s

Logistic operations involve the integration of different activities in an organization, which can be categorized into five distinct areas in the organization including development of a support solution, purchase and continued acquisition of materials, management of resources, which include warehousing, and distribution, maintenance that may involve repair and finally disposal of waste material (Bowersox and Closs, 1996). McDonalds is an international organization with franchises all over the world. Hence, logistics operations resulting to proper planning will lead to increased efficiency making it a vital part of the company. Utilization of information technology in the human resource departments to keep track of operations in the different franchises leads to increased efficiency in this company (Natalie and Colin, 1994). These systems enable McDonalds easily and effectively tackle difficulties experienced in the different franchisees, whether labor issues, management issues or supply issues and this ensures that there is no compromise on the efficiency of the entire company.

The perish ability of the goods offered requires a fast system of delivery both in the acquisition and supply hence solid ties are important, with a lot of suppliers and consumers to ensure that the supplies are always on time. For fast communications with these suppliers, advanced information technology is incorporated in the company systems to make the orders and confirm delivery. These systems automation allows them to record time and location of orders and keep track of the amount of orders to ensure the production matches the amount of orders. For the purchase of input and materials used in production of the final product, information technology serves the purpose of location of viable suppliers and comparison of the quality of products produced by the various suppliers and enables the company to gain access to prices and conditions of procurement (Davis-Frank and Manrodt, 1991). It also serves the purpose of keeping constant contact with suppliers to ensure that deliveries are made on time and payments paid and recorded to maintain good relations that do not harm the operations of McDonalds. Incorporation of information technology in the logistic systems in McDonalds aids in the management of resources as there are constant records kept of resources used in purchases and payments. Revenue gained is automatically recorded, and this lowers the possibility of defraud within the company.

Since McDonalds is a large organization, the amount of purchases made is large hence warehousing is necessary even though for a short period due to the perishable nature of food products. Information technology is applied in tracking the entry and exit of the bulk to ensure proper utilization of the products. This is also necessary in knowing the amount of restocking required to prevent under or overstocking causing losses. McDonalds utilizes IT in distribution by keeping track off constant orders by recording them and ensuring that delivery is on a first come first served basis and on a timely way enhancing customer reliance due to their reliability. Finally, there are records of waste material due to the perishable nature of food where their costs are calculated and deducted from revenue to get the correct cost of running the organization. Hence, McDonalds ensures efficient incorporation of IT in its systems leading to smooth running of supply and acquisition system, therefore keeping it competent due to the reduced occurrence of hitches.

References

Bowersox D. J. and Closs D. J., (1996). Logistical Management. New York: McGraw-Hill. Print.

Davis-Frank W. Jr and Manrodt, K. B., (1991). ‘Principles of Service Response Logistics’, Proceedings of the Council of Logistics Management.Illinois: Oak Brook. Print.

Nathalie, F. B. and Colin, J., (1994). ‘Formulating Logistics Strategy’, Logistics Distribution Planning.London: Kogan Page Limited. Print.