ENG 383B-01How can McDonalds ensure quality control of food supply worldwide through supply chain management?Francis Chu 201212234HRaphael Lo 201212240HNatalie Kam 201212206H

Table of ContentIntroduction and BackgroundWhat is supply chain management?Importance of supply chain management for McDonaldsChallenges in ensuring quality control of food supply worldwideAnalysis of McDonalds recent food scandal in China (2014)SolutionConclusionRecommendation

1. IntroductionThe worlds largest chain of hamburger fast food restaurants Quality of food is one of the most important elements of running a restaurantSupply chain management is essential However, there are some food scandals of McDonalds recentlyObjectives: - Investigate how McDonalds control food qualityAnalyze the food scandals in ChinasProvide ways to improve supply chain management

1. Background

2. What is Supply Chain Management?An integrative approach: all stages involved, directly or indirectly, in fulfilling customers requestsE.g. Managing the movement of raw materials into an organization; and the movement of finished goods out of the organization to the end customer

3. Importance of supply chain management for McDonalds

Lower costsHigher availability of productCut down delivery time (more efficient)Maintain the highest standardsHigher response to customer requestsImproved relationships between buyers and sellers

4. Challenges in ensuring quality control of food supply worldwide

Language barrier =>Misinterpretation of the rulesOutsourcing to private companies which give managers a lot of autonomy =>may not follow the rules EXACTLY Infrequent visit by the American managers =>adherence to the rules is not guaranteed

*Source: http://fortune.com/2014/09/02/why-mcdonalds-supplier-failed-in-china/

QuestionsDo you think food quality control of McDonalds in Hong Kong is good enough? Why?Any other ways to improve McDonalds supply chain management?How can McDonalds improve their reputation on food quality?