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McDonald’s “Secret Sauce” for Supply Chain Success

The fast food leader stays atop the marketplace with a “System” where suppliers and McDonald’s “share the pie.”
By Kate Vitasek
Kate Vitasek is the author of six books on her “Vested business model” for highly collaborative relationships and a faculty member for the University of Tennessee’s Graduate and Executive Education program. She can be reached at .(JavaScript must be enabled to view this email address).
December 6, 2016

Is there a “secret sauce” for consistent supply chain success? McDonald’s—which is consistently ranked in the top echelon of supply chains by Gartner—thinks so.

Gartner’s influential rankings of the top supply chains for 2016 once again has McDonald’s occupying the No. 2 spot. In fact, the company has occupied the No. 2 slot since 2013 and has been entrenched in Gartner’s top 10 rankings since 2011.

So what is the secret sauce? According to McDonald’s, it is creating long-term supply chain success based on a “System” where everyone wins. University of Tennessee researchers studied McDonald’s System as part of its research into what is known as the Vested business model. McDonald’s relationships with its suppliers embodies the Vested mindset of expanding the pie and sharing the pie. Suppliers that help McDonald’s succeed also succeed by building their own businesses. Both McDonald’s and its suppliers create value rather than simply exchanging value, as in conventional transaction-based relationships.

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Download Article PDF

Is there a “secret sauce” for consistent supply chain success? McDonald’s—which is consistently ranked in the top echelon of supply chains by Gartner—thinks so.

Gartner’s influential rankings of the top supply chains for 2016 once again has McDonald’s occupying the No. 2 spot. In fact, the company has occupied the No. 2 slot since 2013 and has been entrenched in Gartner’s top 10 rankings since 2011.

So what is the secret sauce? According to McDonald’s, it is creating long-term supply chain success based on a “System” where everyone wins. University of Tennessee researchers studied McDonald’s System as part of its research into what is known as the Vested business model. McDonald’s relationships with its suppliers embodies the Vested mindset of expanding the pie and sharing the pie. Suppliers that help McDonald’s succeed also succeed by building their own businesses. Both McDonald’s and its suppliers create value rather than simply exchanging value, as in conventional transaction-based relationships.

SUBSCRIBERS: Click here to download PDF of the full article.

 

 


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