Logistics management plays a major role in determining overall success of companies

Logistics c be plays a major role in determining boilers suit success of companies provide range worryLogistics heed is an integrating pass which unionises and optimizes all logistics activities, as hearty as integrates logistics activities with diametric functions, including marketing, sales, manufacturing, finance, and information technology.(Jonsson, 2008, p 4)Logistics Management or Supply Chain Solutions, both play a major role in determining the all overall success of a company. Major consequences argon found in tot up d freshstring if in that respect is even small variance in inventory to overcome such consequences an effective logistics is necessary for any organisation. Logistics heed involves high take aim of competences and salutary knowledge. Managing from raw existent to final examination stage at right describe on right time is handled by logistics management. To leverage opportunity in emerging markets, companies atomic number 18 focusing on conso lidating and aligning their impart concatenation management infrastructure, processes and procedures to cut out prices and improve efficiency.A Supply chain consists of the series of activities and organisations that materials move through on their journey from initial suppliers to final guests. any product has its own unique supply chain and these merchantman be both long and complicated. (Waters 2003 p.7) in that respect is a series of step problematic from the origin of services or product and its inhalation. The steps involved in this are know as supply chains. The report provide provide operations of McDonalds in UK and will emphasis on its supply chain management.Company Background and IntroductionMcDonalds toi allow is the worlds leading forage service organization. The corporation started away as a small drive-through in 1948 by 2 br early(a)s, Dick and Mac McDonald. In addition, McDonalds opens a modernistic restaurant every three hours. Big Mac is the bi ggest attraction and backrest of the corporation. Moreover, McDonalds maintains its competitive advantage by constantly creating new power points to add onto its menu. This shows us that McDonalds practices an analyzer type of strategy, introducing new items and def supplanting its active mavens.McDonalds opened its foremost UK restaurant October 1974. In December 2004, there were over 1330 McDonalds restaurants operating in the UK. Around 60% of these are owned and operated by the company. The remainders are operated by franchisees. Each McDonalds restaurant is structured as an independent business, with restaurant management responsible for accounting, operations, inventory control, community relations, training and human resources.Read practically http//www.thetimes light speed.co.uk/case-studyrecruiting-selecting-training-for-success28-194-1.phpixzz15v72oKUJSupply chain management strategyThe complete SCP modelhttp//www.tompkinsinc.com/publications/competitive_edge/arti cles/11-08-supply_chain_ picknerships.aspSupply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion and all logistics management activities. Companies adopt supply chain management to match that supply chain is operating effectively and providing high level of customer satisfaction with low cost. SCM integrates the demand and supply management indoors and across companies. (Jonsson 2008 p .5) The quick-service-restaurant (QSR) giant has built an entire process over the years for managing a sophisticated pitching system, starting on the live-animal intersection side and railway linening all along the supply chain until products cooking stove their final destination as McDonalds customers favourite.Nature and Operation of OrganisationMcDonalds Corporation is the world largest chain of fast regimen restaurant, serving more that 58millions customer every day. A McDonalds restaurant is operated by either fra nchisee or the corporate itself. The corporation revenue generates from rent, royalties and fees paid by franchisees and as well as from sales in company operated McDonalds. The menu is consists hamburgers , cheeseburgers , chicken and fish products , French fries , eat menu , soft imbibes ,shakes and desserts. (McDonalds Website n.d.)Logistics Service ProvidersMany organisations do not coiffe umpteen of their own logistics activities. They arrange logistics service providers to take advantage of efficient and experienced specialists to look after the transport, while the organisation chamberpot revolve around on its core operations. An organisation mainly forms a partnership with other company to look after warehousing, purchase of material, material handling and many of the other functions of logistics. When one company uses other companies to run its logistics are known as third base party or 3PL or contract logistics. For McDonalds detect stone distribution works as a 3PL. (Waters 2003 p.90)Keystone scattering UK is a subsidiary of Keystone Foods LLC, which provides food manufacturing and distribution services to rather a large step of customers in America, Asia, and Europe. Keystone distribution was create in 1977 in partnership with McDonalds for its UK baker of hamburger bun and since hence(prenominal) company is progressing along with McDonalds. Keystone distributor has been efficiently supplying everything to its existing client involve to run the business successfully. Keystones manages a large part of McDonalds UK supply chain and replenishing its 1200 UK stores from mops and ketchup to the essential ambient , fresh , nipping foods that makes up the McDonalds menu. (Logistic Business IT Website 09.Nov.2009)Structure of Supply ChainStructuring the supply chain requires an understanding of the demand patterns, service level requirements, distance considerations, cost elements and other related factors. (Rock ford Consulting Website N .D.) Moving of material inward is upstream and forbiddener is downward. The upward activities are divided into courses of suppliers. A supplier that sends materials directly to the operations is initiative level supplier one that send materials to a first tier supplier is a second tier supplier one that sends material to a second tier supplier is a third tier supplier and so on to the original source. Customers are as well divided into tier. One that gets product directly from the operations is first tier customer and so on to final customers. (Waters 2003 p.8)http//www.gmtonline.com.my/solutions/B2B/pic/rosett1.jpghttp//www.gmtonline.com.my/solutions/B2B/rosettanet_b2b_supply_chain.aspMcDonalds deals with different suppliers for its different products and ultimately which aims to provide customers great taste and on low-priced price. McDonalds has been on the job(p) in partnership with household brand such as with coca cola, Tropicana and Buxton who act as second tier supp lier because they supply its products to anchor distribution who works for McDonalds as first tier supplier. Also there are number of other suppliers such as Sun valley and Moy Park who supply McDonalds with Chicken product all these works as second tier supplier for McDonalds. Also Ecsa, the makers of the beef patties who are refer for success of supply chain besides supplies its product to McDonalds first tier supplier (Keystone Distributors). All the different supplier deals with Keystone Distributor, who then sends material directly to McDonalds to run the business smoothly by providing on affordable prices, delivering products on time and helps in outward style of sound outs and receiving payments from customers. Overall, keystone is a important player in structure of supply chain for reservation upward and downward activity successful. (Make up your own mind Website process 2009)Managing the supply chainAs the McDonalds UK distributor, its the responsibility of keyston e to provide the stainlessive aspect service and product every time they need and also to coordinate the requirement of hundreds of McDonalds around UK. They work along the supply chain ensuring the tone of voice and reliability is kept while passing talking to to restaurant. In hallow to achieve this Keystone uses the latest technology and software to work closely with McDonalds marketing and business plan. Keystones ensures managing peak and troughs as they come along for property smooth supply chain and ensures there are no out of sprouts. On an average Keystone carries five days inventory in their store and delivers three to four times per week inventory in severally restaurant. To meet that delivery they have 300 vehicles, tractors and trailers which help them to run these logistic operations at heart UK and including the Isle of Man and channels Island by delivering around one million cases each week. Their biggest challenge is ensure those vehicles amaze at the res taurants on time and containing everything beingness redacted and meeting 100 percent quality of product including frozen, chilled or dry. (Business Re clear Europe website 10th.July.2010) enumeration Control at McDonaldsMcDonalds introduced in 2004 a central blood management function known as Restaurant supply Planning Department. The group build these factors into the new planning and forecasting system called Manugistics which forecast belike demand of complete menu items such as Big Macs. McDonalds deals in three types of stock-taking like every business hasRaw stuff and nonsenseThese ingredients go into producing finished product. They are buns, beef patties, paper cups and packaging in case of McDonalds. They are delivered three and five times a week. There are three sections of raw material Frozen, chilled, ambient which arrive together in one lorry so that each product can be stored at their suitable temperature.Work-in-progressThe process of being made into finishe d product is referring to as Work-in-progress. A Big Mac consists of a bun, dickens beef patties, lettuce, cheese, pickles, onions, sauce and a small amount of seasoning. The restaurant waits until the stage is graded so that Big Macs stays hot and fresh when served. consummate StockThe product gain for immediate sale to customer are known as finished products. At lunch time and mobile evening hours restaurant will have range of Big Macs and chickens ready for sale to customers. First-in-first-out method is used to handle all stock whether raw material, work-in-progress, or finished product, in order to minimise waste and also it helps in providing fresh food at all time to each and every customer. register ManagementThe process of making sure there is enough stock at all times to meet customer demand whilst minimising expensive waste is known as stock management. gritty cost is involved in holding too much stock so McDonalds uses lean stock control method to save money. catal ogue ordering motorbus work with the new stock control system, Manugistics, to ensure capable raw stock is available. This helps restaurant to produce the meals required consort to the forecasted demand. Forecast is done on the basis of restaurant historic product-mix data from last year, store-specific and national causal factors such as national promotions and shoal holidays, information from store managers about factors that might affect demand .e.g. path closure or local events and new promotions.Restaurant manager need to ensure that the data they enter into the system is as accurate possible. Every day restaurant manager record opening and closing stock of key food items. Other items are recorded weekly and periodical basis. The store computers system identifies any stock count deviations from last stock count so it gives opportunity to manager to investigate missing product. For example, the manager may have missed off a box of continual meat while counting them earl ier on the shift.Ordering operationThe ordering process involves holding a small buffer stock. This is unneeded amount of inventory held to meet any unexpected higher demand. Inventory manager uses a web based communication software called Weblog to view and amend store order proposals. Each time of ordering weblog creates a proposed order to analyse and amend if necessary. Weblog helps managers to view what quantity have been ordered, how much is the current stock level and how much stock is due to be delivered at a particular time. The system automatically generates a delivery note that gives the exact quantities and descriptions of the delivery. The manager has to click confirm on weblog when they finishes selecting amount of inventory they needed to use.Serving CustomerCompetition and increasing consumer tasting for variety and healthier food makes McDonalds to expand the range of menu. Customers entering into McDonalds are divided into those who know about menu and those who are new and approach path to restaurant first time and are not familiar with menu. apart(predicate) from selling food items by itself McDonalds also sell Extra repute meals which consist of a burger, fries and a drink. When customers reaches the front counter and place their order, the till person applies two selling technique. The selling up technique where order is changed by asking customer by suggesting larger dish out and also by adding extra item such as drink and another one is suggestive selling technique where any item extra is being asked to sell each and every customer. For example if customers comes and buys two three adults meal and one two children meal and they are being asked if they wanted to buy two apple pies for 1.50.The till person punches the order on to their till. There are some standard food items which are meant to be held in merchandise bin, the counter person pick the food what is being ordered in a specific sequence which involves glacial drinks first, and then hot drinks second, then fries and at last burgers.If a particular food item is not available in the production bin, then the counter person calls the order to the production person who then calls the food order to the grill area. Certain food products in drop period are cooked to order due to their less demand and to avert waste.When the order in not ready the till person ask the first customer to pay and wait aside if its take away order and if its eat in they ask customer to take a sit and order will be brought to your table, and start dealing with the next person in the line. Every time till person completes the order there is a button served which is to be punched in order to let computer know that the order is finished. As if it not done the computer will not allow taking eleventh order. So every time order is done its necessary to serve it off.Performance usefulnessKeystone manages the supply chain to ensure that there is always sufficient stock to fulfill demand when orders are received. The companys integrated order and management system prints colour coded descriptive picking labels which aid restaurants in stock rotation. Orders are then collated on to a purpose built trailer designed for the simultaneous delivery of frozen, chilled and ambient product stored at book temperatures. This ensures that the restaurants complete order is supplied in one delivery, whilst maintaining the product in perfect condition. This process works extremely well, but there is always mode to improve processes. Keystone is working on an initiative that it hopes will encourage advance the efficiency of the companys operations. Were reviewing the whole of the delivery schedule as well as the entire delivery system in conjunction with McDonalds to strain and find a more cost effective and equally eco-friendly delivery schedule with them, says Assal. Thats a major render for us at the issue and were working on that in detail. That will be rolled out in the coming months and it will produce a major cost benefit to the whole McDonalds supply chain.Its also important for Keystones environmental insurance policy to chime with McDonalds high profile efforts in this area. All packaging within our distribution centres, both cardboard and plastics, is collected and recycled we recycle everything from office stationery down to warehouse packaging. At present, we run all our vehicles on diesel that contains five percent bio-diesel. But were working on a project to use 100 percent bio-diesel in all our vehicles by the end of this year, instead of fossil fuel diesel. We believe that will have a neutral effect on the business it will neither be a cost benefit or a cost saving.We also have a number of initiatives light sensitive switches, low consumption bulbs in our warehouses. We try to play our part and do what we can to reduce our carbon footprint. Its policies like these that make Keystone a truly advanced company, and one that is moving with the times, just as McDonalds updates its operations for a ever-changing fast service industry.http//www.fin.gov.on.ca/en/budget/ontariobudgets/2004/images/papere2.gifhttp//www.fin.gov.on.ca/en/budget/ontariobudgets/2004/papere.htmlhttp//lh4.ggpht.com/_k0ovfY0NP70/TGAHWC5Pc-I/AAAAAAAABdY/3kLGhdxvHNk/s800/mcdonalds.PNGhttp//iamjamesward.wordpress.com/2010/08/09/there-is-only-one/The draw below shows the forward flow of materials from upstream to downstream, the bidirectional flow of information, and the movement of money from downstream to upstream.http//www.vivaceproject.com/showcase_html/supply%20chain%20simulation/introduction%20to%20supply%20chain_image1.jpgFlows in the supply chain (from Spekman et al 1998)http//www.vivaceproject.com/showcase_html/supply%20chain%20simulation/introduction%20to%20supply%20chain.htmIt is easy to see that these factors are passing variable in nature and this variability needs to be considered during the supply chain analysis process. M oreover, the interplay of these complex considerations could have a significant look on the outcome of the supply chain analysis process. http//rockfordconsulting.com/supply-chain-management.htm