McDonald’s Supply Chain Methodology
McDonald’s largest distributor, the Martin-Brower Company LLC, is tasked with delivering supplies to nearly all of the company’s 15,000 locations in North America. Each distribution center handles 250 to 700 restaurants, providing warehousing, transportation, and logistics services to each.
Most restaurants get two or three deliveries per week, with one delivery truck able to completely stock the establishment. Delivery times are coordinated to not interrupt breakfast or lunch service because customers may not pull in if they see the truck in the parking lot.
Drivers call in route to be sure the restaurant has workers there to take delivery when it arrives, reducing the time trucks are in the parking lot by up to 30%. The company also switched from roller and stand to delivery carts that move from the truck into the restaurant.
With its sprawling and complex supply chain, McDonald’s and Martin-Brower maintain plans to deal with disasters. Each summer, both companies plan for hurricanes and tornadoes and communicate emergency procedures.
Inventory is turned over every four days at a McDonald’s restaurant. The company can do this because of relationships they’ve formed with their suppliers, many of which still maintain the relationship that started with McDonald’s Corporation founder Ray Kroc.