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.
Sometimes city governments issue zoning requirements prohibiting the construction of giant retail stores. The latest: Swansboro, North Carolina, where town residents are hotly debating an ordinance that, in effect, would ban construction of a Walmart.
The latest news, analysis, services and systems for facility location planning and network design and their impact on global supply chains. Today’s companies are planning their location of facilities and the underlying transportation network in order to deliver goods in a more timely and efficient manner than ever before. New technologies are transforming the way companies search for and choose the right location for a facility in a region — allowing them to stay ahead of the competition in their industries. As these services continue to evolve, businesses are discovering new ways to increase efficiency and cut costs. Learn how companies are using facility location planning solutions to power their supply chains.
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