The company continues its relentless efforts to streamline and optimize its supply chain, deploying an application from LLamasoft to engage in predictive analytics and modeling.

It's fair to say that some mouths dropped in some quarters when word got out that the vice president of supply chain for McDonald's in the UK said he had handshakes rather than formal contracts with key suppliers. In dispensing with the written word, the fast-food chain formed long-term relationships with its partners in food, packaging and distribution, and included them in planning – even helping to set prices and volumes. Said Warren Anderson, "We don’t have contracts, but we do have our very assured supply partnerships with our food and paper suppliers," he said. "A gentleman’s handshake is just as powerful here."

The rise of e-commerce means that companies must re-think where and how they construct distribution facilities, says Bob Silverman of Jones Lang LaSalle. Silverman notes how other market trends also are impacting facility planning.

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