Stock Management in Mcdonalds
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Managing stock to meet customer needs
Introduction
McDonald’s is one of only a handful of brands that command instant recognition in virtually every country in the world. It has more than 30,000 restaurants in over 119 countries, serving around 50 million people every day. All businesses face challenges every day. One of the major challenges facing McDonald’s is managing stock. Stock management involves creating a balance between meeting customers’ needs whilst at the same time minimising waste. Waste is reduced by: 1. Accurate forecasting of demand so that products do not have to be thrown away as often. 2. Accurate stock control of the raw materials.
The Stock Management Problem How to Meet customer needs Minimise waste
CURRICULUM TOPICS • Stock control • Business planning • Supply chain planning • Improving productivity • Planning, controlling, reporting
GLOSSARY Stock: materials or finished products for sale. Stock control: maintaining information on the quantity, location and condition of materials. Stock management: the process of controlling stock; may be through automated systems. Forecast: a projection for the future based on an analysis of likely sales. Raw materials: goods in their original state purchased from outside suppliers – e.g. beef, lettuce, etc.
This is an increasingly tough balancing act. As customer tastes change, McDonald’s needs to increase the range of new products it offers, so the challenge of reducing waste becomes even greater. In the past, stock ordering was the responsibility of individual restaurant managers. They ordered stock using their local knowledge, as well as data on what the store sold the previous day, week and month. For example, if last week’s sales figures showed they sold 100 units of coffee and net sales were rising at 10%, they would expect to sell 110 units this week. However, this was a simple method and involved no calculations to take account of factors such as national promotions or
Managing stock to meet customer needs
Introduction
McDonald’s is one of only a handful of brands that command instant recognition in virtually every country in the world. It has more than 30,000 restaurants in over 119 countries, serving around 50 million people every day. All businesses face challenges every day. One of the major challenges facing McDonald’s is managing stock. Stock management involves creating a balance between meeting customers’ needs whilst at the same time minimising waste. Waste is reduced by: 1. Accurate forecasting of demand so that products do not have to be thrown away as often. 2. Accurate stock control of the raw materials.
The Stock Management Problem How to Meet customer needs Minimise waste
CURRICULUM TOPICS • Stock control • Business planning • Supply chain planning • Improving productivity • Planning, controlling, reporting
GLOSSARY Stock: materials or finished products for sale. Stock control: maintaining information on the quantity, location and condition of materials. Stock management: the process of controlling stock; may be through automated systems. Forecast: a projection for the future based on an analysis of likely sales. Raw materials: goods in their original state purchased from outside suppliers – e.g. beef, lettuce, etc.
This is an increasingly tough balancing act. As customer tastes change, McDonald’s needs to increase the range of new products it offers, so the challenge of reducing waste becomes even greater. In the past, stock ordering was the responsibility of individual restaurant managers. They ordered stock using their local knowledge, as well as data on what the store sold the previous day, week and month. For example, if last week’s sales figures showed they sold 100 units of coffee and net sales were rising at 10%, they would expect to sell 110 units this week. However, this was a simple method and involved no calculations to take account of factors such as national promotions or