How to Transform Your Supply Chain Management Strategy

Introduction 

The dynamism in the current business environment demands strategic planning to keep up with competition and ensure business longevity. The supply chain plays a pivotal role in the daily operations of the business. Efficiency in the selection of supplier, making transport and distribution choices and communicating with customers can make the difference in a business where the completion of tasks runs in chains. Supply management chain encompasses all activities from the processes of sourcing for materials, conversion, distribution and finally managing all the logistics. Control of expenses and boosting of sales rely on proper supply chain management strategies that take into account the challenges in the supply chain process. Consequently, supply chain transformation processes focus on innovative solutions to overcome the challenges associated with the field. 

Implementation of supply chain transformation programs takes into account the various issues affecting the supply chain process in the organization before coming up with strategies that suit the intended change processes. The supply chain for organizations in the food retail industry is especially crucial due to the sensitivity in material handling and the level of competition in the industry. Success rates in supply chain transformation in the industry often fail to meet the intended purpose due to inefficient strategies and failed leadership. While most organizations acknowledge the need to align their supply chain process to current technological ideal, lack of way laid down plans for implementation is a hindrance to meeting these goals. The success of McDonald’s supply chain process and its contribution to the overall success of the company points to the importance of a long-term supply chain strategy. The company’s estimated 70 million customers in over 30,000 restaurants rely on a supply chain strategy that creates values for customers, employees and restaurant owners. Hence, this study explores the efficiency of McDonald’s supply chain and its relevance in overcoming the challenges encountered in managing supply chain change strategy in the food retail industry. 

Literature Review 

The widely adopted supply chain processes utilized in organizations today have their roots in their functions described by Peter Drucker. Drucker conceptualized a supply chain process that represented a shift from the traditional demand-driven system to one that utilized the pull in demand (Fernie & Sparks, 2014). A key feature of the Drucker’s supply chain system is enhancing the role of information systems to achieve maximum control of the supply chain. Advancements in technology allow better control of these information systems thus enabling precise planning and monitoring of the various functions in the supply chain. Drucker supply chain also advocated for the elimination of unnecessary inventory which typically slows down the functions in the supply chain (Fernie & Sparks, 2014). Importantly, the management needs to identify the core activities in the supply chain and increase the level of focus accorded to these activities. By outsourcing the non-core activities, enough time is freed up to efficiently align these core activities to the needs of various stakeholders in the organization. Building on these ideas of Drucker’s concepts, organizations in the food retail industry are able to ensure smooth flow of materials and products. 

Transformations in supply chain processes borrow on mutually reinforcing activities to create processes that effectively create value from the beginning of the supply chain process Fernie & Sparks (2014) provided an assessment of these activities and emphasized on the shift towards a more cooperative and collaborative style that creates efficiency for the whole process. These activities aim to overcome the challenges experienced while implementing transformation programs in the supply chain while at the same time reducing the costs and enhancing sales. Secondary distribution is crucial for the completion of the supply chain. Instead of exerting control only on the primary activities, organizations, especially in the food industry, are focusing on creating efficiency by monitoring secondary activities using information technology (Fernie & Sparks, 2014). These include activities such as stock replenishment, control of the movement of products and sorting of goods. Organizations are also relying on quick response techniques which essentially quicken the flow of products by cutting down on the level of inventory (Qrunfleh & Tarafdar, 2014). In an industry where sales and demand are likely to fluctuation, these techniques ensure that these demands are met within the shortest time possible while also taking into account the changing needs of customers. These techniques reduce the time that orders take before they are processed and also effectively work on smaller orders to reduce the backlog. 

While focusing of gaining substantial control over secondary distribution, supply chain managers are also working on integrating the primary and secondary distribution such that the two work as a single system (Fernie & Sparks, 2014). The rationalization process aims to utilize the logistical assets available in the organization while cutting down on waste. Proper integration strategies eventually lead to the merging of primary and secondary distribution hence reducing costs. The idea of reverse logistics is gaining pace in the quest to create an efficient supply chain system that reduces costs while improving efficiency. Consequently, businesses are applying tactics that ensure the quick return of packaging material and handling equipment to ease the process of reverse logistics. Changes in laws concerning the handling of waste have helped in speeding up the reverse logistics techniques by encouraging businesses to efficiently utilize their resources while minimizing waste. 

The complexity of supply chain warrants a deep understanding of the activities related to the supply chain for purposes of managing transformations for the system. Hence, the idea of supply chain management whose aims to coordinate the flow of products and services across multiple geographical areas with a focus on reducing costs, meeting customer needs and gaining competitive advantage (Serdarasan, 2013). Two varied forms of complexity are apparent in the supply chain; static complexity and dynamic complexity. Static complexity affects the sum of the systems involving the structure of the supply chain while dynamic complexity relates to the operational characteristics of the whole system. These complexities influence decision making processes in the transformation process of the supply chain and eventually determines the success of the change process. While innovation is a key contributor to the success of the supply chain in the current business environment, it adds to the complexity of the transformation strategy by affecting the static component of the supply chain. Furthermore, trends relating to globalization and outsourcing create the need for a better understanding of the supply chain to overcome these complexities. A successful transformation strategy in the supply chain takes into account the complexities presented by the current environment and presents solutions based on the challenges faced in the current and future environment. 

Perspectives into the current models for supply chain management are incomplete without insights into the role of technology in transforming dysfunctional systems into success supply chains. Current business strategies are embracing digital technologies to align the activities within the business to ideals in the industry. The activities include computing, communication, and connectivity to ease the information and products are handled in the organization. The current supply chain links business strategy to functional-level activities that aim to utilize IT infrastructure to control the flow of products and services (Bharadwaj, El Sawy, Pavlou & Venkatraman, 2013). For instance, organizations with several branches in far apart geographical location can easily monitor materials flow through IT infrastructure thus ease the decision making the process the headquarters. Embracing digital technologies presents several benefits to firms in the form of boosts in sales and productivity, innovation in the supply chain and improved interactions with customers (Matt, Hess & Benlian, 2015). Apparently, the benefits offered by these digital technologies in relation to the supply chain are independent of the benefits presented by other factors. Consequently, businesses prioritize the benefits presented by digital technologies in the process of managing the supply chain change transformation strategy. 

Roh, Hong & Min (2014) asserted the need to develop a responsive supply chain goes against the traditional practices which have proven to be less efficient. This supply chain focuses on incremental gains at every step of the process. Materials are transported faster at lower costs, adherence to quality of goods and customers are served according to their specific needs. The traditional supply chain which relied on a linear process is less convenient for the modern business world, hence firms rely on digitalization of their processes to come up with a complex supply chain that meets modern day demands. The complexity of this responsive supply chain introduces new perspectives into its successful implementation. Factors such as the size of the business, the type of products and materials and services offered are determinant of the ease of implementing the responsive supply chain. Pull production capabilities are possible under this supply chain when inter-organizational resources are effectively utilized in achieving the desired objectives. Irrespective of the geographical location of the firm, responsive supply chains are able to meet the varied needs of customers and other stakeholders in the business at much-reduced costs. 

Issues and Challenges in Supply Chain 

Food Safety 

Demands in supply chain require a better understanding of the path that materials and finished products take from the suppliers to the firm then the finished products to the market. The supply chain in the food industry bears its own unique features due to the sensitivity of the materials handled and the level of safety demanded. Globalization of the food trade such as in the case of McDonald’s also increases scrutiny on the manner in which the food is handled. Meeting the demands in the industry is vital for maintaining the trust of customers and adhering to the laws and regulations in different geographical regions. Maintaining quality in the food supply chain is especially a challenge considering the well-documented incidences such as the mad cow disease and the various food-borne diseases (Aung & Chang, 2014). Such incidences a have resulted in increased demands by customers about the quality of food offered including the traceability with regard to the sourcing and handling of food. Additionally, traceability systems for food supply chains have come under direct scrutiny by authorities revealing weaknesses that have resulted in strict policies and laws (Aung & Chang, 2014). Consequently, quality assurance requirements are needed in the industry to ensure safety for customers. While these measures are in place with the best interest of the customers in mind, they introduce new complexities in a challenging supply chain. Firms in the industry have to maintain the best standards beginning from the suppliers up to the moment the food reaches the customers. While traceability is likely to have different definition according to the type of food, the general understanding is the customer must be able to access all the information about the origin and the handling process for the food. Consequently, firms undergo extra costs in meeting these demands. 

Theoretical Perspectives 

The supply chain has emerged over the last few decades a crucial component of business strategy with the most successful organization utilizing it to gain competitive advantage and cut down on costs. The organization mainly use supply chain to solve issues within their supply and distribution networks. Interestingly, the supply chain concept is continuously evolving hence firms have to keep up with the changes especially with the incorporation of technology. Surprisingly, the lack of any theoretical grounding for supply chain presents issues that could be solved is supply chain was based on proven techniques as opposed to reliance on tried methods by different firms (Melnyk, Narasimhan & DeCampos, 2014). Mainly, businesses only seem concerned with the concepts in supply chain management without a focus on the origin of these concepts or the number of changes to these concepts that can sustain a successful supply chain. Applying the example of food retail, firms strive to develop supply chains that create value for the long term. However, with careful analysis and application of concepts, a theoretical framework for supply chain in the food retail industry can be developed to help overcome the numerous challenges in the industry. Resultantly, firms can save on costs and efficiently utilize organizational resources with a theoretically grounded supply chain. 

Globalization 

Firms seeking to boost their sales and achieve a considerable market share are focusing on global markets as local market become too competitive or are fully exploited. While globalization presents opportunities for business growth by opening up new markets, it introduces new challenges in the supply chain as firms begin operating in the global market. Businesses focus on shifting operations to locations where the supply chain costs are lower including transportation, cost of labor, taxes, and prices for raw materials. The production process thus becomes global with some firms producing various parts of the same product in different global locations. As outsourcing of the production process is done, the procurement procedures are also affected. Different suppliers in vast geographical locations complicate an already complex supply chain. Businesses have to coordinate with parties across borders to ensure continuity in production. Additionally, the delivery lead times have to be maintained according to the needs of customers. Customers are less concerned about the supply chain costs and challenges hence are likely to shift to different retailers if their needs are not met according to their specifications. Another issue in the globalized supply chain is the need for monitoring the production cycle to maintain the expected production cycle. Real-time monitoring includes the flow of raw materials to the moment the materials become finished products. Advancements in technology have made it easier for the firm to apply their monitoring abilities on a global scale. Monitoring is especially crucial in the food retail industry due to safety concerns and the implications that breaches in handling and safety can have on the business. Consequently, the supply chain managers have to apply strict monitoring techniques with the aid of the available technology to achieve the intended quality of products. 

Moreover, expansion on the global scale increases the markets where firms have to distribute their products. While opportunities for higher sales arise, the supply chain must adjust to meet the needs of the new customers. Customer behavior a key consideration in the global market since various cultures, social circles and region have varying preferences. Maintaining uniformity of the products if often an unsustainable practice considering the varying needs of customers in these regions. This is especially a challenge in the food retail supply chain since various outlets have to customize their products according to the varying needs of customers in these regions. Additionally, social media introduces challenges that are new in the supply chain. Customers have better exposure which causes new demands that enterprises have to meet. Furthermore, consumers are advocating shorter life cycles for products such as shelf foods and the materials used in production. Fast-changing markets market is undesirable considering the need to forecast changes in demand with time. Innovation in the supply chain thus becomes a necessity to sustain the spikes and dips in demand. Food retailers are now relying on agile supply chain strategies to keep up with these transformations in the market. 

Quality Issues and Compliance 

Firms are now faced new expectations by consumers in conditions where compliance measures are strict and likely to lead to fine or revocation of licenses when they are not adhered to. Social amplifies the damages associated with faulty products through the easier spread of information. Hence, supply chain managers have to act with precision to ensure products do not receive negative scrutiny from consumers. Hence, businesses have to maintain high quality products at low costs. Regulations in the handling, packaging, and transportation of products are now tighter in the food retail business as authorities aim to protect customers from harmful products. Meeting the local and international standards for the supply chain strains the supply chains and is likely to attract unexpected costs. In some countries, the certification processes can be overwhelming leading to disruptions in operations and in extreme cases closure of the business. 

Personnel Issues 

Finding people with the right skillset to handle supply chain tasks is becoming increasingly difficult (RBW Logistics, 2018). Traditional supply chain concepts centered on laid down procedures that individuals relied on to ensure the flow of materials and products according to prevailing needs. These techniques, however, have been outsmarted by advancement s in the supply chain such that current leaders utilize technology and innovative techniques to develop transformation programs that reduce costs and ensure products reach customers on time. The demands of the modern day supply chain require leaders who have the talent and vision to build the firm’s supply chain to the exact needs of the market. Most businesses struggle to find employees suited to the current supply chain roles hence utilize personnel with skill limitations for the role. As a result, most of these businesses are unable to develop innovative solutions to the challenges in the supply chain Thus, costs remain high while the time taken to process orders is undesirably longer than expected. 

While lack of talent possess major problems for the organization in their supply chains, poor relations are also a manifestation of employees’ failure to identify the right suppliers and instill measures to avoid disruption due to differences with suppliers. Interruptions often occur due to mistrust issues between suppliers and businesses, resulting in standoffs over pay and timelines for delivery. Having a knowledgeable supply chain management unit goes a long way in solving these [problems by identifying the risks that are likely to cause problems in the future. The management then develops plans for dispute resolution and backups that aid in avoiding interruptions. Importantly, the organization needs to identify a reliable supplier with a reputable record provide materials and services. 

Research Issues 

Supply chain transformation strategies often result in failure or little success when compared to the intended purpose of the change strategy. Apparently, only 30% of supply chain transformations manage to meet the objectives of the process with the remaining 70% only managing part or none of the intended purpose (Fortna, n.d). These statistics paint a bleak picture of the adopted techniques of managing supply chain transformation. The role of managing the transformation process for the business organization rests on supply chain leaders. The leaders have a responsibility to provide the vision and techniques to maneuver through the transformation process with the intention of attaining all the objectives of the process. Overruns in costa and schedules are the main motivation for organizations to come up with transformation programs for the supply chain. 

Avoiding the Traditional Approach to Implementing Change in the Supply Chain 

Admittedly, the supply chain has undergone evolution for decades. Digital technologies have rendered the traditional approach to supply chain projects obsolete due to new demands on a global scale. The traditional approach was characteristically desperate in creating change within the organizational framework based on current challenges, irrespective of their future implication. These desperate measures were quick fixes whose sustainability was weak and likely to lead to escalated problems in the future. They typically lacked a systematic and comprehensive approach which took into consideration the integration of organizational processes with a definite outcome. The presence of a weak leadership alignment without proper plans for implementing transformative approaches. Lack of quality leadership undermined the change process and was a major recipe for spectacular failure. The leadership likely failed to put into consideration the readiness of employees to the eminent change leading to rigidity on the human par when the changes were eventually introduced. 

Business goals are a crucial component of the implementation process for the transformative processes for the supply chain. Organizational goals need to be aligned with the change process such that the changes make substantive contributions to the attainment of these goals. Traditional models or transforming the supply chain, however, failed to incorporate business goals resulting in a detachment between the intended purpose of the change process and the eventual outcomes. Additionally, the supply leaders relied heavily on consultants and third parties to develop a plan for transformation (RBW Logistics, 2018). The result of this overreliance was a lack of connection between the challenges facing the organization and the possible solution and the quick fix solution offered by the consultants. 

Insights into the weaknesses of the traditional approach to change management in the supply chain transformation provide reliable information into the form of activities to avoid in creating a sustainable change process in the supply chain. Less successful transformation programs incorporate the features discussed under the traditional approach. Modern approaches to the change process demand leadership capabilities on the part of the supply chain leaders. The leaders create a vision and a plan which they incorporate into the current supply chain. With the identified challenges and issues in the food retail supply chain, the leaders are then to incorporate modern practices of supply chain management which utilize digital technologies to create sustainable change. 

The Need for Change 

Motivators for change in the supply chain for food retain businesses include a reduction in costs and the need to maintain a competitive advantage. Increased competition in the food retain business exerts a lot of pressure on organization leaders to come up with strategies that will help the company to retain its competitive advantage in a rapidly changing global market. Previously, established companies like McDonald’s enjoyed total domination over other smaller companies in the industry. However, trends and changes in preferences for customers are eliminating these privileges hence the need to create a supply chain that meets the needs of customers on a global scale. Technological advancement has contributed heavily to the shift in customer preference as consumers are gaining greater exposure and demanding products that suit their needs. McDonald’s has to invest extra resources in produces quality products according to the needs of its customers. 

Costs in the production process are a major consideration when assessing the activities in the supply chain. Unplanned costs are bound to occur in the supply chain in addition to the normal costs. Hence, the efficiency and residence of the supply chain are vital components in maintaining an uninterrupted flow of material and products (Chopra & Sodhi, 2014). While conducting a study on the best strategies for supply chain transformation, issues of residence and efficiency take center stage due to their influential role in creating a successful transformation in the supply chain. Unplanned costs emanate from risks in the supply chain while the normal costs are the daily expenses in attaining flow of products and services. 

Financial and Non-financial Benefits for Change 

Certainly, transformation strategies for supply chain in food retail focus on the short and longterm benefits. The profitability and longevity of businesses rely on its ability to maintain profits while maintaining growth in the industry. Both the financial and non-financial aspects of the supply chain are crucial in managing change in the supply chain. The financial factors include the need to improve sales and cut down on costs. Successful change management strategies ensure customers have access to the company products at the time that they need them. Such measures ensure that more of the company’s products are purchased hence improving products. Costs, on the other hand, affect the profitability of the company whereby supply chain managers strive to keep costs at the lowest level possible to increase profits. Change strategies identify the risks and challenges in the supply chain and come up with measures to reduce risks while overcoming challenges that negatively affect profitability. Non-financial motivations for effecting change in the supply chain center on motivating employees and attaining the needs of the customer to maintain loyalty. Food retains business aim to provide the best services to the customers to build a strong reputation that will sustain the company in the future. 

Change Processes 

The change process in the supply chain demands carefully laid down procedures that incorporate the company’s logistical activities and goals. Communication and collaboration are the fundamental requirements of successful change strategies. Supply chain leaders carefully assess the current communication strategies of the organization and come up with areas that require improvement. Gaps in the communication process for the organization result in delayed orders and increase the likelihood for disruptions and other risks relating to the supply chain. Hence, the leaders identify these gaps and develop innovative measures for bridging the gaps. Hence, researching change strategies in supply chain focuses on the techniques applied by the leaders to create positive change. However, the change process in food retail supply chain takes into consideration other weaknesses in the supply chain. These include the outdated strategies in the companies supply chain and techniques to create improvement through innovative practices. 

The food retail supply chain offers challenges that are unique in the context of the market and the regulations that are already in place. Hence, the research must explore the unique challenges of the industry and the possible solutions devised by industry players to overcome these issues. For instance, regulation in the industry is likely to change due to occurrences that are beyond the organization’s control such as diseases outbreaks due to poor practices by competitors. Hence, designing the supply chain to adapt to these changes facilitates changes processes that will not interrupt with the operations of the organization. New laws on genetically modified foods will also affect the supply chain operations for food retail businesses due to traceability measures. Hence, change processes must consider these eventualities. 

Research Methods 

The research methods outline the procedures that will guide this particular study. Research methods include the design of the stud, the procedures for data collection and analysis together with an outline of the variables that will guide the analysis process. The chosen research methods for this-this food retail supply chain, with focus on Macdonald’s fast food company, will aim to explore the strategies of managing supply chain transformation processes were successfully implemented leading to the ranking of the company’s supply chain among the best five in the world. 

Research design 

The research design refers to the detailed framework adopted by the researcher for exploring all the areas of the study. Several research designs exist according to the nature of the study, the study purpose and the intended outcome of the study. An appropriate research design is selected with consideration for the ease of collecting reliable data within the most preferable time for the study. The theoretical and philosophical models of the research area also a vital consideration since the success of a particular study heavily relies on these two models (Yilmaz, 2013). Typically, the philosophy of the particular design informs decisions on instrumentation, data collection methods and eventually the analysis techniques. The theoretical model of the study on the hand guides the inferences from the research and recommendations that the researcher puts forward. 

In light of that, selection of a qualitative research design suits the purpose of this research since it allows an in-depth analysis of the success of strategies applied by McDonald’s in transforming their supply chain to among the best in the world. Qualitative studies allow the research to narrow down to specific areas of interest for the study. In this case, the main area of interest for the study is the supply chain at McDonald’s hence a qualitative approach will ease the data collection process. Exploration of this data will provide the conclusions which are the desired output of the study. Under the case study approach in this study, contemporary situations are assessed with the aim of developing an in-depth understanding of the topic. A case study id more appropriate since it allows a review of all the aspects of McDonald’s supply chain with a focus on how the management of the transformation process resulted in success. The researcher is already equipped with the parameter of the study and only embarks to measure them against the ideals of the chosen organization. Consequently, the researcher develops insights that will inform decisions about the approach of the topic under study. 

Data Collection and Procedure 

The process of data collection is crucial for the whole study since it provides the relevant data for analysis. The strength of the collected data determine the inferences and eventually the success of the study. Too little data presents problems in the analysis stage since the conclusions will be made on inferior evidence. Comparatively, too much data causes problems in the analysis stage leading to difficulties in making correct conclusions. Hence, the right instrumentation and techniques in data collection will ensure the collection of relevant data that is resourceful for the analysis stage. Considering the nature of the study and the intended purpose, data collection for this study will be carried out through reliable sources on the internet relating to the supply chain design at McDonald's. These include the company’s website which provides a detailed explanation of the supply chain including its history. 

Caution will be necessary at the data collection stage to ensure only relevant sources are utilized hence avoiding compromise in the study results. The focus will be on the strategies applied by the supply chain leaders at the company in developing an efficient supply chain that is capable of effectively serving thousands of McDonald’s restaurants all over the globe. Additionally, the technological input in the supply chain together with the role of the right relationships between supplier and the supply chain leaders. In essence, the data collection process will provide in-depth knowledge on managing change in supply chain transformation. 

Study variables 

Case studies offer the advantage of identification of new variables in research which could strengthen conclusions (Bennett, n.d). These variables further display causal mechanisms which introduce new sets of knowledge for the study. The dependent variables for the study are the time taken to process the orders, profitability level of the organization, shorter order cycle, costs in the supply chain and the number of customer complaints. These variables depend on the measures instilled by the supply chain leaders to transform McDonald’s business strategies into effective and efficient processes. The dependent variables are the change processes for the supply chain, including the decisions by the management. Changes in the market also determine the course of the success of the supply chain transformation strategies hence qualify as independent variables. The level of technological input in the supply chain innovative processes are also the independent variables. 

Discussion and Findings 

McDonald’s boasts a presence in over 100 countries with approximately over 35,000 restaurants (Sharma, 2013). The company is an industry leader inconsistency of food quality, safety, and uniformity. Customers are guaranteed the same quality of food regardless of the geographical location of the restaurant. The company invests in longterm relationships with suppliers as opposed to chasing costs. Supplier relationships are based on transactions where each supplier is paid according to the goods supplied with time. Focus on outcomes is a fundamental principle of McDonald’s supply chain where achieving the goals of the company is the main driver for creating an innovative supply chain. Driving business value for the company involves the infusion of quality and precisions in the supply chain where the service offered to customers is a vital component of the chain. Mutual commitment thus becomes key where McDonald’s pays its supplier on time while the suppliers also deliver goods according to agreed standards. The suppliers are also confident of the business position of the company due to its competitive advantage and immunity to cuts in prices. 

The quality, service and cleanliness value of the McDonald’s is infused into the suppliers' principles to guarantee delivery of products that align to the core values of the company. The supply chain leaders at McDonald’s have a specific vision for the company which they share with their suppliers. While the sharing process is meant to infuse the core values of the company into its supplier, the management understands the dangers of micromanaging supplier. Consequently, the company avoids activities that dictate to supply their needs. Suppliers have the freedom to identify the best methods of meeting the standards of McDonald’s to maintain the level of trust in their business relationships. The supplier is also free to innovate to deliver products to McDonald’s using faster and cheaper methods. Focus on clear and measurable outcomes in the supply chain facilitates the process of creating efficiency by enabling McDonald’s to check on the performance of the supply chain over time. Suppliers are incorporated into the planning and execution process of these goals hence have a hand in the outcomes of the strategic plans. The suppliers thus become part of the supplier chain process hence have an obligation to work towards the success of the whole process. These strategies create clear shred goals that benefit both the supplier and McDonald’s, hence creating achievable wins in the long-term. 

The pricing models at McDonald’s aim at securing the financial future for both the company and the supplier. McDonald’s outsources almost every material in their final products list, thus identifying the relevance of good working relationships with suppliers. This long-term view avoids disputes over prices since the suppliers understand that the long-term goals far outlive the short-term benefits. The pricing systems developed by McDonald’s have high levels of transparency such the suppliers have access to all the costs involved hence develop a genuine reason to work closely with the company in meeting its financial goals. Working at optimal conditions carries the benefit of reduced costs on the long term which in turn reflects in the payments received by suppliers. Importantly, a peer-to-peer approach in McDonald’s supply chain eliminates any hints of mistrust. Accountability is maintained at the highest achievable levels since the relationship with suppliers is that of mutual consent without forced governance issues. Emergent problems are solved at the lowest possible levels without the company forcing its ideal situation on suppliers. 

Governance issues are accorded the highest level of serious due to their impact on the relationships between the company and their suppliers. Beginning at the operations levels all the way to the executive, the peer-to-peer link exists such that issues at different levels are controlled by the relevant people at these levels. As a result, none of the parties develops concerns over the push by one party to have their way regarding the issues under discussion. This approach not only saves time in the process of solving conflicts but also lays the foundation for all-inclusive methods for handling emergent issues. 

Analysis Methods 

This study utilizes the content analysis technique to obtain resourceful data from all the data obtained in the case study. The content analysis identifies data that is relevant to the study and filter out data that is not important for the study (Elo et al. 2014). The relevant content for this study relates to the identified research variable which relates to the success of the transformation strategies in the supply chain in McDonald’s supply chain. With regard to the time required to process orders, McDonald’s supply chain is concerned working with a supplier with the capability of delivering quality on the agreed timelines. McDonald’s understands the level of reliance on its supply chain to meet the needs of customers, hence invests in supplier relations that are built for the long term. These suppliers provide a guarantee for assured delivery since there is an assurance of pay according to the time and the goods delivered. 

Costs in the supply chain are reduced by the elimination of shifts to different suppliers over prices. While shifts might seem desirable for the short-term, they erode the trusts of supplier hence affecting long-term business relationships. McDonald’s suppliers are guaranteed of proper pay for the goods supplied, thus are unlikely to dwell on cost issues due to the understanding that they are bound to benefit in the long-run from the business relationship. Consequently, the company saves on supply chain costs through long working relationships. Organizational profitability, on the other hand, is a continuous process that is reflected through the ability of the company to meet its costs. Considering the long working relationships between McDonald’s and its suppliers, it is certain that the company has a stable financial base which reflects in the continuous expansion of to various continents. Moreover, the company has been able to maintain quality and uniformity for its products through a reliable supply chain. Consequently, customer complaints and related incidences are kept at a minimum. 

Conclusions and Suggestions 

Main Findings 

1. McDonald’s invests in building long-term relationships with its suppliers. The company creates a common ground such that the suppliers share the same strategic plan with McDonald’s. The imperative for these shared goals is the need to have a common purpose which benefits both the company and the supplier. Hence, transformation strategies in the supply chain must aim for shared goals to create mutual understanding. 

2. Trust is key in creating change in the supply chain. Although McDonald’s aims to maintain the same standards for its products, it refrains from micromanaging suppliers to meet its objectives. Granting freedom to suppliers allows them the chance to apply innovative means in their areas of expertise to meet business standards. This level of trust reflects in the long-term relationships with suppliers. 

3. Focus on costs affects other critical areas of the supply chain. Insistence on the lowest price is likely to lead to conflict hence the failure of the transformation strategy. Quality brings in more revenue hence the company is able to benefit from reduced costs over an extended period. 

Research Implications 

The food retail industry is rapidly changing due to shifts in consumer preference and stringent regulations. Maintaining quality and remaining consistent is the market is key to long-term sustainability. Hence, supply chain transformation strategies are crucial in monitoring costs and meeting the needs of customers at all time. Although companies like McDonald’s have achieved success with an efficient supply chain, still there is potential for improvement in the supply chain for food retail businesses with the application of digital technologies. Hence, research on the application of technologies in overcoming challenges in the supply chain is necessary to continually improve the supply chain. 

Study Limitations 

The findings on the transformation strategies in food retail supply chains may lack transferability to other industries due to the unique challenges in the industry. McDonald’s case study also limits the study findings to the food retail supply chain hence the potential of some of the findings applying in other industries is reduced. An assessment of the strategies applied by McDonald’s in creating transformation in its supply chain bears the characteristics of a financially stable multimillion company. Smaller food outlets might face unique challenges not highlighted in McDonald’s case study. 

References  

Aung, M. M., & Chang, Y. S. (2014). Traceability in a food supply chain: Safety and quality perspectives.  Food control ,  39 , 172-184. 

Bennett, A. (n.d). Case Study Methods: Design, Use, and Comparative Advantages . Retrieved from https://pdfs.semanticscholar.org/7d11/098671a75e7b289fd65adab2eb236c5cf580.pdf 

Bharadwaj, A., El Sawy, O., Pavlou, P., & Venkatraman, N. (2013). Digital business strategy: toward a next generation of insights. MIS Quarterly, 37 (2), 471-482. 

Chopra, S., & Sodhi, M. (2014). Reducing the risk of supply chain disruptions.  MIT Sloan Management Review ,  55 (3), 72-80. 

Fernie, J., & Sparks, L. (2014).  Logistics and retail management: emerging issues and new challenges in the retail supply chain . Kogan page publishers. 

Fortna. (n.d). Keys to Successful Supply Chain Transformation . Retrieved from http://www.fortna.com/whitepapers/WP_Keys%20to%20Successful%20Supply%20Chain%20Transformations%20FINAL_EN.pdf 

Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies.  Business & Information Systems Engineering ,  57 (5), 339-343. 

Qrunfleh, S., & Tarafdar, M. (2014). Supply chain information systems strategy: Impacts on supply chain performance and firm performance.  International Journal of Production Economics ,  147 , 340-350. 

RBW Logistics. (2018). Supply Chain Challenges . Retrieved from http://blog.rbwlogistics.com/the-5-biggest-supply-chain-challenges/ 

Roh, J., Hong, P., & Min, H. (2014). Implementation of a responsive supply chain strategy in global complexity: The case of manufacturing firms.  International Journal of Production Economics ,  147 , 198-210. 

Serdarasan, S. (2013). A review of supply chain complexity drivers.  Computers & Industrial Engineering ,  66 (3), 533-540. 

Sharma, K. (2013). A case study on McDonald’s supply-chain in India.  Asia Pacific Journal of Marketing & Management Review,    2319 , 2836.