McDonald‟s has no legally signed agreements with its suppliers. It is a simple „handshake
relationship‟ with the suppliers. The policy with suppliers is very clear; one product-one supplier
relationship. The policy has been proven as long-term relationships at every time.”
The fast food chain sells 30 or 35 independent Stock Keeping Units (SKUs) at its outlets. With
various combinations (a meal can be small, medium or large, while a Coke can also be sold as
regular, medium or large), there are 100-150 SKUs which are sold to customers. Limited
SKUs,have ensured speedy service and ease to maintain stock keeping.
The major demand (80%) is fulfilled by 14 core suppliers and whenever addition is there in
restaurant line those 14 suppliers are the first choice.