McDonalds Outbound Logistics

Proposal - Outbound Logistic Flow in HK McDonald’s

Group 7

Chan, Wing Ying Winky

Lee, Tak Yan

Leung, Ki Yun

NG, Wing Yan

Objective

This proposal intends to give an overview on the project about the logistics management of McDonald's. We will first give a description on the company, and briefly discuss the current outbound logistic flow in McDonald Hong Kong. In the project, we will identify McDonald's current logistics management practice, analyze its strengths and weaknesses by SWOT analysis, and eventually propose recommendations for ways of improvement with the possible difficulties being discussed. We chose McDonald's as our target of study due to its great influence as a fast food chain around the globe. We hope to identify its successful factors and any possible challenges it might be facing, so as to suggest ways of improvement.

Company Overview

In 1975, McDonald's entered Hong Kong market and opened the first store in Causeway Bay. Now, McDonald's becomes one of the largest fast food chain with its intensive network of 237 restaurants in Hong Kong. And Hong Kong has become one of the most successful McDonald's market operations in the world as claimed in their website. Several awards have been given to Hong Kong McDonald's recently, including the Hong Kong Management Association (HKMA) Quality Award - Golden Award 2012. The well-designed service of McDonald's is proven to be excellent by these awards.

Methodology

We will focus on three areas of McDonald’s service, which are (1) System Design, (2) Labour and Time, and (3) Cost and Revenue. After the detailed study on McDonald’s outbound logistics, we will evaluate on the existing efficiency of the logistic and will make recommendations on improving the process.

(1) System design

It means the process flow from customer arrival to customer getting their food and leave the queue. The primary steps include: customer gets in the line and wait, staff takes order from the customer and input the order to the system, order send to kitchen for processing, kitchen prepares the food according to the order, front counter picks and packs the finished order, food is delivered to customers, and finally customers get the food and leave the queue. We will conduct the site observation* and researches for online reference like the official website of McDonald’s or some restaurant review platform for the data.