ENG 383B-01

How can McDonalds ensure

quality control of food supply
worldwide through supply chain
management?
Francis Chu 201212234H
Raphael Lo 201212240H
Natalie Kam 201212206H

Table of Content
1. Introduction and Background
2. What is supply chain management?
3. Importance of supply chain management for
McDonalds
4. Challenges in ensuring quality control of food
supply worldwide
5. Analysis of McDonalds recent food scandal in
China (2014)
6. Solution
7. Conclusion
8. Recommendation

1. Introduction
The worlds largest chain of hamburger fast
food restaurants
Quality of food is one of the most important
elements of running a restaurant
Supply chain management is essential
However, there are some food scandals of
McDonalds recently
Objectives:
- Investigate how McDonalds control food
quality
- Analyze the food scandals in Chinas
- Provide 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 requests
E.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 costs
Higher availability of product
Cut down delivery time (more efficient)
Maintain the highest standards
Higher response to customer requests
Improved relationships between buyers
and sellers

4. Challenges in ensuring quality

control of food supply worldwide
Language barrier
=>Misinterpretation of the rules
Outsourcing 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/

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