case study mcdonalds supply chain

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McDonald’s and the Challenges of a Modern Supply Chain

Three lessons.

Recently, McDonald’s, the world’s iconic largest food service provider, has been (forgive the cliché) through the grinder. Poor performance has led to the departure of its CEO and plenty of critical attention in the business pages . Part of this story relates to the provenance, or origins, of its products: Chains that provide more upmarket “fast casual” dining such as Panera, Chipotle, and Shake Shack have brands that speak of freshness, health, and trustworthy sourcing.

• Steve New teaches operations and supply-chain management at the University of Oxford’s Saïd Business School and is a fellow of Hertford College.

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Breaking Down McDonald’s Supply Chain Strategy: A Recipe for Success

Breaking Down McDonald’s Supply Chain Strategy – DFreight

The food supply chain is the process of getting food from producers to consumers, and it has evolved significantly in the digital age. McDonald’s is a significant player in the food supply chain, leveraging technology through its supply chain strategy to become highly efficient and stay competitive. Through partnerships with digital freight forwarders like DFreight, food companies can coordinate shipments, monitor performance, optimize resources, and monetize data analytics. With the help of digital forwarders, they have streamlined their food supply chain and improved their overall efficiency.

In this blog post, we will delve into the critical components of McDonald’s supply chain strategy and explore how it contributes to the company’s overall success.

Table of Contents

McDonald’s and Supply Chain Strategy

McDonald’s  is one of the world’s largest fast-food chains, with a global presence and millions of customers served daily. Understanding its supply chain strategy is essential to comprehend the company’s ability to deliver quality food and maintain customer satisfaction consistently.

A well-designed supply chain strategy is crucial for any successful business, and McDonald’s is no exception. By effectively managing its supply chain, McDonald’s ensures the timely delivery of ingredients, minimizes costs, and maintains product consistency across its vast network of restaurants.

In the previous blogs, we looked into the supply chains of famous and leading companies, which you can read about each of them in the section below.

Navigating the Complexities of McDonald’s Supply Chain

McDonald’s is one of the world’s largest and most successful fast food companies, and a complex and far-reaching supply chain powers its success. From procurement and supplier management to distribution and logistics, technology and innovation to sustainability and ethical practices, and collaboration and partnerships – managing the complexities of its supply chain is no small feat. In the following, we look at the various elements of McDonald’s supply chain and explore how it ensures consistent success.

Procurement and Supplier Management

McDonalds offers a wide range of food products to customers around the world. The company is committed to selecting high-quality suppliers, setting a rigorous quality control and standards, and maintaining strong relationships with suppliers. By understanding their effective supplier management practices, we can gain insights into McDonalds’ commitment to providing excellent customer satisfaction.

1. Sourcing Ingredients and Products

McDonald’s sources a wide range of ingredients and products to create its diverse menu. The company carefully selects suppliers meeting stringent quality and safety standards, from fresh produce to meat, packaging , and condiments. McDonald’s manages its procurement process to ensure a steady supply of high-quality ingredients aligned with its brand values.

2. Supplier Selection and Evaluation

Maintaining strong relationships with suppliers is critical for McDonald’s supply chain. The company selects and evaluates its suppliers based on reliability, capacity, cost-effectiveness, and adherence to ethical practices. Discovering how McDonald’s fosters collaboration and transparency with its suppliers will shed light on its effective supplier management practices.

3. Quality Control and Standards

Ensuring consistent quality across all its restaurants worldwide is a priority for McDonald’s through the rigorous quality control measures implemented by the company, including regular inspections, audits, and certifications. Understanding how McDonald’s maintains high-quality standards will give insights into its commitment to customer satisfaction.

Distribution and Logistics

McDonald’s supreme success in the fast-food industry is due in part to its effective logistical operations. From centralized distribution models to inventory management and transportation strategies, McDonald’s has perfected its supply chain in order to meet customer demand, prevent stockouts, and maintain efficient delivery networks. By exploring how McDonald’s manages distribution and logistics, we can gain insights into their strategic prowess.

1. Centralized Distribution Model

Efficient distribution and logistics play a vital role in McDonald’s supply chain strategy. The company employs a centralized distribution model, allowing for streamlined operations and reduced costs. Understanding how McDonald’s manages the movement of ingredients and products from suppliers to restaurants will provide valuable insights into their logistical prowess.

2. Inventory Management

Maintaining optimal inventory levels is crucial for a fast-food chain like McDonald’s. McDonald’s utilizes advanced inventory management systems to forecast demand, prevent stockouts, and minimize waste. Discovering their inventory management techniques will showcase their ability to achieve operational efficiency and meet customer demand.

3. Transportation and Delivery

Ensuring timely and efficient transportation is essential to deliver fresh food to McDonald’s restaurants. The company manages transportation and delivery logistics, including using dedicated distribution centers, fleet optimization, and route planning. Understanding their transportation strategies will show their ability to operate on a global scale while maintaining consistency and quality.

Technology and Innovation

McDonald’s is renowned for its commitment to innovation and efficiency in its supply chain operations. By leveraging advanced digital solutions, automation technologies, and data analytics, the company is able to optimize their operations and ensure customer satisfaction at all stages of the supply chain.

1. Digital Supply Chain Solutions

In today’s digital age, technology plays a vital role in supply chain management. McDonald’s leverages digital solutions such as order management systems, real-time tracking, and data analytics to optimize their supply chain. Exploring their use of technology will highlight their commitment to innovation and efficiency.

2. Automation and Robotics

Automation and robotics have revolutionized supply chain operations across industries. McDonald’s is no exception, utilizing automation technologies in various supply chain stages. Automation and robotics enhance efficiency, reduce costs, and ensure food preparation and packaging consistency.

3. Data Analytics and Forecasting

Accurate demand forecasting is critical for McDonald’s to manage inventory, minimize waste, and meet customer expectations. The company utilizes data analytics, machine learning in logistics , and predictive modeling to forecast demand, optimize supply chain operations, and drive business growth. Understanding their data-driven approach will showcase their ability to adapt to changing consumer preferences.

Sustainability and Ethical Practices

McDonald’s has committed to sustainable sourcing, environmental impact reduction, and labor and social responsibility as core principles of its supply chain management strategy. These initiatives demonstrate the company’s commitment to protecting the environment and providing safe and ethical working conditions for those involved in their supply chain.

1. Sustainable Sourcing Initiatives

Sustainability is an increasingly important aspect of supply chain management, and McDonald’s recognizes the significance of minimizing its environmental footprint. The company’s sustainable sourcing initiatives include responsible agricultural practices, support for local farmers, and commitment to certified sustainable ingredients. Discovering McDonald’s efforts toward sustainability will highlight its dedication to protecting the planet.

2. Environmental Impact Reduction

McDonald’s understands the importance of reducing its environmental impact. The company implements measures to minimize waste generation, optimize packaging materials, and promote recycling and energy efficiency across its supply chain. Exploring their environmental initiatives will showcase their commitment to operating in an environmentally responsible manner.

3. Labor and Social Responsibility

McDonald’s supply chain strategy also focuses on labor and social responsibility. The company ensures fair and ethical treatment of workers throughout its supply chain, including supplier factories and farms. Understanding their commitment to labor rights and social responsibility will show their dedication to creating a positive impact beyond just business operations.

Collaboration and Partnerships

McDonald’s has built their successful supply chain on the basis of fostering strong collaborations and partnerships with franchisees, suppliers, stakeholders, and communities. From engaging stakeholders, to working closely with suppliers on production and demand, to working with franchisees to support their success, McDonald’s exemplifies an ideal model of successful collaboration and partnership.

1. Franchisee Relationships

McDonald’s operates on a franchise model, which requires strong collaboration and partnerships with its franchisees. The company fosters franchisee relationships, including supply chain collaboration, training programs, and shared goals. Exploring their collaborative approach will showcase the importance of a cohesive network in executing McDonald’s supply chain strategy.

2. Collaborative Planning with Suppliers

Collaborative planning with suppliers is crucial to McDonald’s supply chain strategy. The company works closely with suppliers to optimize production schedules, manage demand fluctuations, and drive continuous improvement. Understanding their collaborative planning processes will provide insights into their ability to adapt to market dynamics and ensure smooth operations.

3. Engaging Stakeholders

Engaging stakeholders is essential for the success of any supply chain strategy. McDonald’s recognizes the significance of fostering positive relationships with various stakeholders, including suppliers, customers, employees, and communities. The company actively engages stakeholders through transparent communication, social initiatives, and community partnerships. Discovering their stakeholder engagement practices will showcase their commitment to building strong relationships beyond the traditional supply chain.

Challenges and Future Trends

The global supply chain landscape is becoming increasingly complex as companies face new challenges due to changing consumer preferences, geopolitical risks, and technological advancements. McDonald’s is no exception to this complexity and has to navigate these issues while adapting their supply chain strategy to an ever-evolving market.

1 . Global Supply Chain Complexity

Operating a global supply chain comes with its fair share of challenges. McDonald’s faces complexities, including managing diverse regulations, cultural differences, and geopolitical risks. The company tackles these challenges and adapts to the evolving global landscape.

2 . Changing Consumer Preferences

Consumer preferences and trends constantly evolve, presenting challenges and opportunities for McDonald’s supply chain strategy. The company navigates changing consumer demands, including the rise of healthier food options, customization, and digitalization. Understanding their approach to consumer preferences will highlight their agility in adapting to market shifts.

3 . Technological Advancements and Adaptation

The supply chain industry is experiencing rapid technological advancements. We will explore how McDonald’s embraces emerging technologies such as blockchain , the Internet of Things (IoT) , and artificial intelligence (AI) to enhance their supply chain operations. Discovering their technological adaptations will showcase their ability to stay at the forefront of innovation.

Streamline Your Food Supply Chain with DFreight

Harness the power of digital freight forwarder DFreight and its online platform and mobile app to improve overall efficiency, reduce risk, and enhance traceability in your food supply chain. With DFreight, you can quickly access accurate and up-to-date product and shipment information to ensure your food deliveries arrive on time, every time. Unlock the potential of your food supply chain and take the hassle out of transporting food with DFreight today.

What factors should I consider when selecting a food provider for my supply chain?

When selecting a food provider for your supply chain, you should consider the provider’s quality standards, sustainability practices, transportation capabilities, pricing, customer service and availability. Additionally, be sure to evaluate their ability to meet your order requirements in a timely manner.

How can I improve the efficiency of my food supply chain?

You can improve the efficiency of your food supply chain by leveraging digital freight forwarding services to streamline the ordering and delivery process, monitor transportation processes, track inventories, and forge partnerships with suppliers for better food availability. Additionally, digital freight forwarding enables businesses to access lower-cost, more reliable transport options while optimizing supply chain visibility and control.

How is McDonald’s supply chain structured?

At the top of McDonald’s supply chain is an international network of strategic partnerships with various suppliers that are responsible for providing raw ingredients such as beef, potatoes, and eggs, as well as other finished products. Products are typically sent to McDonald’s regional distribution centers, which then send the products to franchised locations.

How does McDonald’s ensure food safety in their supply chain?

McDonald’s ensures food safety in its supply chain by evaluating food vendors and partners, maintaining strict food safety protocols and testing, and conducting regular quality and safety inspections. Additionally, the company has a traceability system to guarantee accountability and transparency when sourcing, manufacturing, and preparing foods.

What steps has McDonald’s taken to improve its supply chain strategy?

McDonald’s has taken a number of steps to improve its supply chain strategy, including expanding its use of third-party logistics providers, implementing automated ordering and delivery systems, partnering with suppliers to reduce waste, and leveraging new technologies to optimize operations.

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How McDonald’s Suppliers and Partners Support Our Customers and Our People

March 31, 2020

By Chris Kempczinski, CEO, and Francesca DeBiase, EVP and Chief Supply Chain and Sustainability Officer, McDonald’s

Dear Global McFamily,

Our work, home and personal lives have all changed considerably over the last few months as we continue to manage through this challenging and unprecedented crisis. It’s clear that we are all facing a very different world, and it has become more important than ever that we work together to serve our customers.

We’re here to serve communities. That has been our guiding compass for the past 65 years and remains at the heart of everything we do, now more than ever. One of our biggest differentiators in doing that is our System – the three-legged stool of our people, our franchisees and our suppliers – which has been in full force over the last several months working tirelessly and safely to supply our restaurants and serve our customers.

Being transparent with each other and our stakeholders is key to managing through these uncertain times. The work happening with our suppliers and third-party partners is an excellent example of that principle in action, so we wanted to share a few highlights.

A resilient supply chain

Our supply chain plays a crucial part in ensuring our food reaches customers, and we are proud to count supplier partners as members of our McFamily. We’ve all heard about or witnessed the amazing work taking place in our restaurants, but there is some equally amazing work going on behind the scenes as our dedicated suppliers continue to work together to get us everything we need to serve our customers.

We are pleased with how our supply chain has adjusted, but we are also not surprised. We have the best supply chain in the industry, and during this challenging time, our supply chain has played an even more crucial role than usual. Our tightly linked, global network of suppliers includes a mix of large companies and smaller, family-owned businesses, all connected by an infrastructure of shared values, partnerships, processes and technology. 

Our global supply chain teams and suppliers have been in constant communication, ensuring our efforts are always aligned and that our operations remain strong. Despite the disruption to our business, to date we have had no break in supply for any food, packaging materials, toys, equipment, logistics or other solutions globally. That means we have been able to continue serving customers the food they love. 

Keeping our restaurants open where possible not only allows us to continue serving our customers, but it supports thousands of jobs in our supply chain as well. 

In addition to the goods and services suppliers continue to provide to our restaurants, suppliers have helped to maintain our commitment to protecting the health and well-being of our customers and our people through their efforts to responsibly procure safety materials such as masks, gloves and hand sanitizer, as well as ensuring the protection of their own employees. 

Our suppliers also have partnered with us to identify and fill the needs of our communities through generous support for Ronald McDonald House Charities and contributions to relief efforts globally of food, medical supplies and financial resources.

Ramping up McDelivery, safely

Our delivery ecosystem is another network where we have adapted our ways of working to ensure we continue to serve affordable and great-tasting McDonald’s food within the boundaries of the various guidelines in place around the world.

Above all, the health and safety of our customers and people remains our number one priority. With that guiding principle, we are stepping up hygiene standards in our restaurants, including by fully sealing delivery bags by using more stickers, posting hygiene information and making hand sanitizer available for couriers, when possible. We also are working closely with our delivery partners to communicate guidelines for courier hygiene and safety in accordance with our high standards.

We also are taking advantage of the flexibility of the delivery model and our own technology to adhere to social distancing guidelines. We have several contactless solutions in place for restaurant pick-up and delivery. That includes having couriers pick up orders at the front door or through the Drive-Thru lane, as well as encouraging customers to elect for a contactless drop-off for their orders. 

We are focused on getting customers what they need by working with our delivery partners to closely monitor their number of couriers to ensure that we can continue to meet customer demand and deliver hot food quickly. All of this is designed to give our customers a familiar, feel-good McDonald’s experience, even in the midst of widespread change and disruption.

Drawing on our collective strengths

These are just a few examples of the three-legged stool working as it is meant to: doing what is right for our customers and being there for our communities through teamwork and operating with transparency and agility across the system. This unwavering spirit is an inspiration to all of us. It’s what makes McDonald’s special.

Looking ahead, as the days, weeks and months unfold, we will continue to draw strength from all three legs of the stool. We are at our absolute best when we have open conversations and learn from each other. We should continue to do that as we work through this period and plan for the long term, while also considering how we might need to adapt to a new reality.

We have always supported each other, and that is one thing that we know with certainty will never change. Thank you for everything you do.

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McDonald’s Secret Sauce for Supply Chain Success

Cite this chapter.

• Kate Vitasek ,
• Karl Manrodt &
• Jeanne Kling  

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Last but not least. Governance may be the last of the Vested Five Rules, but it is perhaps the most important. Following the first four rules helps you get to a good agreement—but you have to manage it. If you do not manage it well, the consequences are costly. In fact, leading industry research found that poor governance can erode up to 90 percent of anticipated value. 1

None of us is as good as all of us. —Ray Kroc

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Ian R. MacNeil, Contracts: Instruments for Social Cooperation (South Hackensack, NJ: F. B. Rothman, 1968).

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O. E. Williamson, “Outsourcing: Transaction Cost Economics and Supply Chain Management,” Journal of Supply Chain Management 44, no. 2 (2008): 5–16. Blackwell Publishing Inc. Retrieved from http://doi.wiley.com /10.1111/j.1745-493X.2008.00051.x.

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John F. Love, McDonald’s: Behind the Golden Arches, rev. ed. (New York: Bantam Books, 1995), relates the widespread practice of the chain restaurant business during the 1950s. It concludes: “Having captive licensees as guaranteed buyers, franchisers needed to do little else than sit back and collect money.”

Peter Eisler, Blake Morrison, and Anthony DeBarros, “Fast-Food Standards for Meat Top Those for School Lunches,” USA Today , December 9, 2009, http://www.usatoday.com /news/education/2009-12-08-school-lunch-standards_N.htm.

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© 2012 Kate Vitasek and Karl Manrodt

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Vitasek, K., Manrodt, K., Kling, J. (2012). McDonald’s Secret Sauce for Supply Chain Success. In: Vested. Palgrave Macmillan, New York. https://doi.org/10.1007/978-1-137-51190-4_6

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McDonald's Corp.: Managing a Sustainable Supply Chain

By: Ray A. Goldberg, Jessica Droste Yagan

McDonald's seeks to learn from a successful response to Greenpeace's Amazon deforestation campaign in order to make its supply chain more socially and environmentally responsible.

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McDonald's Corporation: The World's Leading Fast Food Chain [Case Study]

Devashish Shrivastava , Anik Banerjee

McDonald's Corporation is an American fast-food organization established in 1940 as a café by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a burger stand and later transformed the organization into an establishment; the Golden Arches logo being presented in 1953 at an area in Phoenix, Arizona.

Ray Kroc, a businessperson, joined the organization as an established operator in 1955 and continued to buy the chain from the McDonald's siblings. McDonald's had its base camp in Oak Brook, Illinois, and moved its worldwide base camp to Chicago in mid-2018.

McDonald's is worth $185+ bn today. It is the world's biggest eatery network by revenue. It was last registered to be serving 69+ million customers each day in more than 120 countries across over 39,000 outlets.

Although McDonald's is best known for its burgers, cheeseburgers, and french fries, its menu also includes chicken items, breakfast things, sodas, milkshakes, wraps, and sweets. In light of changing buyer tastes and a negative backfire on account of the wretchedness of its food, the organization has added mixed greens, fish, smoothies, and natural products to its offerings.

McDonald's Corporation's income originates from leases and charges paid by the franchisees. According to two reports distributed in 2018, McDonald's is the world's second-biggest private manager with 1.7 million representatives (behind Walmart with 2.3 million workers).

Here's bringing you the McDonald's company profile that will present to you McDonald's company overview, when was McDonald's founded, McDonald's growth over the years, about McDonald's, McDonald's owner name, founder of McDonald's corporation, McDonald's history and background, McDonald's case study marketing, and more.

McDonald's - Company Highlights

McDonald's - Startup Story and History McDonald's - Mascot/Logo McDonald's - Business Model And Market Strategy McDonald's - Target And Mission McDonald's - Growth McDonald's - Restaurants And Services McDonald's - Future

McDonald's - Startup Story and History

Richard and Maurice McDonald in 1940, opened the primary McDonald's at 1398 North E Street at West fourteenth Street in San Bernardino, California; however, it was not the McDonald's you know today. Ray Kroc made changes to the siblings' business and modernized it.

The siblings presented the "Speedee Service System" in 1948 by extending the standards of cutting-edge drive-thru eatery that their antecedent White Castle had tried over two decades earlier. McDonald's emerged with a delivery model where it made its food on a supply belt and delivered it within 2 minutes.

It looked like a fantastic and impossible eatery that had:

• Only burgers, fries, and shakes on the menu • No plates or waiters to serve the customers

However, when Ray Kroc came, he was astonished by the never-ending waiting lines that were there waiting for their orders from McDonald's.

Kroc was then 50 already and was selling milkshake mixers door to door. Ray Kroc had earlier tried his hand in many things but never had attained success in his whole life. He already worked as a musical director, pianist, and had also worked as a real estate guy, in the paper cup industry, and as a seller of kitchen appliances, but he couldn't hold on to one thing among them all. Thus, Kroc was a person who lived from paycheck to paycheck.

Kroc came to McDonald's to deliver an absurd order of 8 milkshake mixers for just one area. He wondered "why would someone want to make 40 milkshakes at a time?" This is why he drove to California, at McDonald's to see the place himself.

Seeing the huge demand for McDonald's burgers, fries, and shakes, Kroc sensed a huge opportunity. He soon pushed the founders of the store to embrace a franchise model. The McDonald's brothers who owned the business, were living a comfortable life then, getting rich by the day, and buying Cadillacs as they filled their pockets. They didn't have vision nor they were eager to expand. However, Ray convinced them and rushed to work, as soon as he did that.

He assumed the role by taking 2 major steps back to back:

• Mortgaging his house when he was already 52
• Opening 18 new outlets in the very first year

This has helped the company scale big time, and McDonald's now boasts of:

• Serving 2.3+ billion burgers a year
• Serving 39,000+ restaurants across more than 120 countries
• Being the 4th largest employer in the world
• Being the largest toy distributor in the world

Though it was Ray's idea and the expansion was promising, the McDonald's brothers made an unfair deal with him. Kroc was allowed only 2% of the profits. McDonald's being to scale aggressively but the founders of McDonald's wasn't really happy with Ray and his scaling. This is why Ray borrowed and bought them out for $2.7 mn, thereby becoming the 100% owner of McDonald's.

The organization attributes its success to Ray Kroc. Kroc later bought the McDonald siblings' value in the organization and was responsible for McDonald's overall reach. He was seen as a forceful colleague, driving the McDonald siblings out of the business. Kroc and the McDonald's siblings battled for control of the business, as recorded in Kroc's life account.

The San Bernardino eatery was torn down (1971, as indicated by Juan Pollo) and the site was offered to the Juan Pollo chain in 1976. This zone currently fills in as central command for the Juan Pollo chain, and a McDonald's and Route 66 museum.

With the development of McDonald's into numerous universal markets, the organization has turned into an image of globalization and the American lifestyle. Its unmistakable quality has additionally made it a regular point of open discussions about heftiness, corporate morals , and shopper obligation.

McDonald's - Mascot/Logo

The first mascot of McDonald's was a cooking cap over a burger who was alluded to as "Speedee" . In 1962, the Golden Arches supplanted Speedee as the all-inclusive mascot. The image of jokester Ronald McDonald was presented in 1965. Ronald McDonald showed up to promote amongst children.

On May 4, 1961, McDonald's initially petitioned for a U.S. trademark on the name "McDonald's" with the portrayal "Drive-In Restaurant Services". By September 13, McDonald's, under the direction of Ray Kroc, petitioned for a trademark on another logo—a covering, twofold curved "M" image.

Before the twofold curves, McDonald's used a solitary curve for the design of its structures. Even though the "Brilliant Arches" logo showed up in different structures , the present form was not utilized until November 18, 1968, when the organization was given a U.S. trademark.

McDonald's - Business Model And Market Strategy

The business and revenue model of McDonald's includes almost 37000 outlets which spread to more than 120 nations. Today, McDonald's is the biggest eatery network on the planet in terms of income.

Initially launched as a Drive-In Hamburger Bar, the idea was advanced in 1940 by The McDonald Brothers, Richard James (Dick), and Maurice James (Mac) McDonald. It was after the presentation of the Speedee Service System with shakes, fries, and burgers costing as low as 15 pennies that the McDonald Brothers started the establishment of McDonald's Hamburgers.

In 1954, Ray Kroc turned into the establishment operator of the McDonald Brothers. The main McDonald's eatery was opened by Kroc in 1955 in Des Plaines, Illinois, USA. It was in the year 1961 that the rights to the eating joint of the kin were obtained by McDonald's for a powerful total of $2.7 million.

You may likewise be astonished to realize that when the first McDonald's eatery opened, the extremely well-known McD french fries were eaten with no ketchup! The revenue model of McDonald's, the world's quickest developing food chain, is an interesting one.

McDonald's - Target And Mission

McDonald's endeavours hard to be its clients' "most loved spot and approach to eating". McDonald's plan of action is fixated on the ground-breaking strategy "Plan To Win", which is placed into requests around the world.

With the mission of "Quality, Service, Cleanliness, and Value", McDonald's has clung to each of these characteristics. Client experience is improved by the selection of five fundamentals: people, products, place, price, and promotion.

Additionally, McDonald's plans to give high-review nourishment, at effectively reasonable costs to individuals over the globe. The deals at McDonald's are furrowed through an efficient deals channel which guarantees remarkable consumer loyalty on all occasions.

Astounding Vision

When Ray Kroc opened the Original McDonald's in Illinois, he had a dream of expanding the franchise across the globe with more than 1000 outlets in the States itself. Remaining consistent with its guarantee, McDonald's widened its worldwide handle by opening joints outside the US as early as 1967.

The first international outlets were opened in Canada and Peurto Rico. By January 2018, McDonald's was situated in 120 nations and had about 37200 cafés with 1.9 million workers. It was serving more than 69 million individuals every day. At one point in time, McDonald's was opening a new outlet every 14.5 hours!

Significant Growth Strategy

McDonald's has clutched a promising development technique to serve customers and spread its wings. The presentation of the "Speed Growth Plan" in March 2017 enhanced the development of the business.

McDonald's development system depends on retaining, regaining, and converting. McDonald's strives to hold on to its old clients, recapture the lost trust, and convert easygoing clients into ordinary ones.

What's more, it has additionally embraced three quickening agents: digital, food delivery, and experience of things to control its monstrous development. It keeps on reshaping cooperation with clients and raising the level of consumer loyalty and experience through innovation and human endeavours.

Decent Variety

Monetarily, McDonald's has affected the world more significant manner than some other organizations. McDonald's adheres to the conviction "Decent variety is Inclusion" and doesn't leave a solitary opportunity to make each person from every network feel regarded. Its suggestion of "Decent variety is Inclusion" has affirmed its situation at the top position.

The McDonald's way of life revolves around the following: customer-obsessed, better together, and committed to lead. These coupled with its conviction has caused the fast-food chain to exceed expectations in the field of business enterprise and showcasing.

McDonaldization

McDonald's can appropriately be named as one of the best organizations to be involved in the worldwide system. The worldwide broadening of the McDonald's is regularly alluded to as "McDonaldization." Its accomplishment in more than 120 nations can be credited to its hierarchical structure.

The hierarchical structure of McDonald's mulls over expanding localization, and in this way, the entire plan of action of McDonald's is normally redone thinking about the mass intrigue in different nations.

Fruitful Acquisitions

The McDonald's Corporation Mergers and Acquisitions (M&A) have, since its inception, entertained itself with cautious acquisitions. Donato's Pizza which is a Midwestern chain of 143 eateries was obtained by McDonald's on 6 May 1999. Aside from securing Donato's, it acquired the Boston Market on 18 May 2000. Boston Market is a drive-through eatery chain that essentially focuses on home-style sustenance.

Supporting Employees

McDonald's doesn't, in any capacity, hamper the development of its workers. It bolsters its representatives in every possible way and empowers them to set up business systems.

At McDonald's, the work environment is brimming with positivity, connections are advanced, professional openings are supported, and business development is sustained.

Coaches, good examples, and backers are accessible at all times to direct the employees on successful initiatives, professional procedures, and prosperous business.

Engagement Of Community And Education

Aside from being one of the best good-quality fast food options, McDonald's investigates every possibility to endeavour for the network it serves. It effectively takes part in network administration and continues to have a critical effect on assorted networks.

The Global Diversity, Inclusion, and Community Engagement Team alongside its key accomplices have fabricated cherished relations with different network-based associations. McDonald's Hamburger University readies its workforce to maintain the multi-billion dollar business and worldwide initiative improvement programs.

McDonald's - Growth

McDonald's eateries are found in 120 nations and serve 69 million customers each day. McDonald's operates 39,000 restaurants/cafés around the world, utilizing more than 210,000 individuals as part of the arrangement. They help operate 2,770 organization possessed areas and 35,085 diversified areas, which incorporates 21,685 areas diversified to regular franchisees, 7,225 areas authorized to formative licensees, and 6,175 areas authorized to remote affiliates.

Concentrating on its centre image, McDonald's started stripping itself of different chains it had gained during the 1990s. The organization possessed a large stake in Chipotle Mexican Grill until October 2006 when McDonald's was completely stripped from Chipotle through a stock exchange .

Until December 2003, it likewise claimed Donatos Pizza, and it claimed a little portion of Aroma Café from 1999 to 2001. On August 27, 2007, McDonald's sold Boston Market to Sun Capital Partners.

Outstandingly, McDonald's has expanded investor profits for 25 back-to-back years, making it one of the S&P 500 Dividend Aristocrats. The organization is positioned 131st on the Fortune 500 of the biggest United States companies by revenue.

In October 2012, its month-to-month deals fell without precedent for nine years. In 2014, its quarterly deals fell without precedent for a long time, when its deals last dropped for the whole of 1997.

In the United States, McDonald's accounts for 70% of sales in drive-throughs. McDonald's shut down 184 eateries in the United States in 2015, which was 59 more than what they wanted to open.

Starting in 2017, the income was roughly $22.82 billion. The brand estimation of McDonald's is more than $88 billion; outperforming Starbucks with a brand estimation of $43 billion. The total compensation of the organization in 2017 was $5.2 billion; this worth saw an ascent of about 11% from the previous year.

McDonald's is, without a doubt, the quickest developing drive-thru eatery chain on the planet. In 2018, McDonald's developed as the most profitable inexpensive food chain with a brand worth nearing $126.04 billion. Also, the all-out resources of McDonald's were almost $33.8 billion.

The world's quickest developing cheap fast food chain partitions its market into four unique areas: U.S., International Lead Markets, High Growth Markets, and Foundational Markets and Corporate.

According to the report set forth by the organization in the year 2017, the market in the U.S. created the biggest measure of income at $8 billion. The International Leads Markets which includes Australia, Canada, France, Germany, and the U.K. created an income of $7.3 billion.

The High Growth Markets which incorporate China, Italy, Korea, Poland, Russia, Spain, Switzerland, the Netherlands, and comparative brought in about $5.5 billion in revenue.

The Foundational Markets and Corporate incorporate the rest of the business sectors. Furthermore, it additionally incorporates a wide range of corporate exercises. The income created by this section of the market represented roughly $1.9 billion.

McDonald's - Restaurants And Services

In certain nations, "McDrive" areas close to roadways offer no counter administration or seating. interestingly, areas in high-thickness city neighbourhoods frequently preclude pass-through service. There are likewise a couple of areas, found for the most part in the downtown locale, that offer a "Walk-Thru" administration instead of a Drive-Thru.

McCafé is a bistro-style backup to McDonald's cafés and is an idea conceived by McDonald's Australia (likewise known, and promoted, as "Macca's" in Australia), beginning with Melbourne in 1993. As of 2016, most McDonald's outlets in Australia have McCafés situated inside the current McDonald's eatery.

In Tasmania, there are McCafés in each eatery, with the rest of the states rapidly following suit. After moving up to the new McCafé look and feel, some Australian eateries have seen up to a 60% expansion in deals. There were more than 600 McCafés around the world some time back.

Create Your Taste

From 2015–2016, McDonald's attempted another gourmet burger administration and eatery idea dependent on other gourmet cafés, for example, Shake Shack and Grill'd. It was taken off without precedent for Australia in early 2015 and extended to China, Hong Kong, Singapore, Saudi Arabia, and New Zealand with progressing preliminaries in the US showcase.

In committed "Make Your Taste" (CYT) booths, clients could pick all fixings including a kind of bun and meat alongside discretionary additional items. In late 2015, the Australian CYT administration presented CYT servings of mixed greens.

After an individual had requested, McDonald's prompted that hold up times were between 10–15 minutes. At the point when the nourishment was prepared, the prepared group ('has') carried the sustenance to the client's table.

Rather than McDonald's typical cardboard and plastic bundling, CYT nourishment was exhibited on wooden sheets, fries in wire bushels, and servings of mixed greens in china bowls with metal cutlery. A more expensive rate connected. In November 2016, Create Your Taste was supplanted by a "Mark Crafted Recipes" program intended to be increasingly proficient and less expensive.

McDonald's Happy Day

McHappy Day is a yearly occasion at McDonald's during which a portion of the day's deals goes to philanthropy. The collections on this day go to Ronald McDonald House Charities.

In 2007, it was celebrated in 17 nations: Argentina, Australia, Austria, Brazil, Canada, England, Finland, France, Guatemala, Hungary, Ireland, New Zealand, Norway, Sweden, Switzerland, the United States, and Uruguay. As indicated by the Australian McHappy Day site, McHappy Day brought $20.4 million up in 2009. The objective for 2010 was $20.8 million.

McDonald's Monopoly Donation

In 1995, St. Jude Children's Research Hospital got a mysterious letter stamped in Dallas, Texas, containing a $1 million winnings McDonald's Monopoly game piece. McDonald's authorities went to the medical clinic, joined by a delegate from the bookkeeping firm Arthur Andersen, inspected the card under a diamond setter's eyepiece, took care of it with plastic gloves, and checked it as a winner.

Although game guidelines disallowed the exchange of prizes, McDonald's deferred the standard and made the yearly $50,000 annuity instalments for the full 20-year time frame through 2014, even in the wake of discovering that the piece was sent by an individual associated with a theft plan meant to cheat McDonald's.

McRefugees are destitute individuals in Hong Kong, Japan, and China who utilize McDonald's 24-hour cafés as transitory lodging. One out of five of Hong Kong's populace lives underneath the destitution line. The ascent of McRefugees was first archived by picture taker Suraj Katra in 2013.

McDonald's - Future

The reported objective is to source all visitor bundling from inexhaustible, reused, or ensured sources, reuse visitor bundling in 100% of eateries, and overcome framework challenges by 2025.

McDonald's turned into the principal eatery organization on the planet to set an endorsed Science-Based Target to lessen ozone-depleting substance emanations. It also joined the "We Are Still In Leader's Circle", driving activity to relieve environmental change.

McDonald's USA completed five years as the sole worldwide café organization to serve MSC-ensured fish in each U.S. area. It united with Closed Loop Partners to build up a worldwide recyclable and additionally compostable cup arrangement through the NextGen Cup Challenge and Consortium. Official pioneers called for atmosphere activity and offered arrangements at the primary Global Climate Action Summit (GCAS).

McDonald's co-facilitated the "Way to Greenbuild" occasion with Illinois Green Alliance at its new worldwide home office. The structure, a collaboration among Sterling Bay, McDonald's, and Gensler Chicago, got USGBC LEED Platinum accreditation.

McDonald's is establishing the tone for other inexpensive food organizations to pursue. Given the present want by numerous buyers to spend cash on organizations that are doing great on the planet, where McDonald's leads, others will pursue.

Who is the founder of McDonald's?

McDonald's was founded by Richard McDonald and Maurice McDonald on 15 April 1955 in California, United States.

Who is the CEO of Mcdonald's?

Chris Kempczinski is the CEO of Mcdonald's since Nov 2019.

Who is the owner of McDonald's in India?

In India, McDonald's is a joint-venture company managed by two Indians- Amit Jatia (M.D. Hardcastle Restaurants Private Ltd) and Vikram Bakshi ( Connaught Plaza Restaurants Private Ltd).

When was the fast-food chain McDonald's founded?

Mcdonald's was founded in 1940 in San Bernardino, California.

How much does a Mcdonald's franchise owner make?

An average Mcdonald's franchise generates $150,000 annually.

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Supply chain management case study 2.

• Case 2: McDonald’s Reinvents Itself Again

Share this activity with your students by simply copying and pasting the URL for this page into your LMS.   

• Time frame: Approximately 30 Minutes
• Setting : Online or face-to-face
• Source : Chapter 6 Demand Management and Customer Service from  Supply Chain Management   by Ray R. Venkataraman and Ozgun C. Demirag
• Recognize the factors that affect demand management. 
• Discuss the various issues to be addressed in managing consumer demand. 
• Discuss the importance of sustainability in the context of customer service.

Imagine yourself working as a business advisor for McDonalds

McDonald’s has never been content to sit back and wait for consumer tastes to change around it. Rather, the company continues to do what it can to shape the face of fast food and influence the marketplace with new offerings and other changes. In recent years, however, the drive by McDonald’s to reinvent itself has risen to another level in the face of stiff competition from healthier alternatives (Subway) and a general feeling by the public that major fast-food companies are not much different from one another in terms of their prices, quality, service levels, and product offerings. 

When fast food seemed synonymous with “greasy,” “overcooked,” and “fried,” McDonald’s changed things up with their healthy options menu, including wraps, grilled options instead of the production line fried foods, fresh fruit, and yogurt-based smoothies. These menu changes were doubly effective: They allowed McDonald’s to compete directly with other stores that promoted healthy alternatives, like Subway, and they took some of the rhetorical wind out of the sails of their harshest critics, including the San Francisco Board of Supervisors, who, in 2011, banned the inclusion of a toy in McDonald's Happy Meals®, claiming that the “pester power” of children could induce parents to buy these unhealthy lunch choices. McDonald’s response was twofold: Offer healthy options like milk and apple slices in Happy Meals®, and instead of eliminating the toys, McDonald’s charged 10 cents for the addition of a toy, with the proceeds benefiting the Ronald McDonald House. 

McDonald’s continues to set the pace in the fast-food industry. When competitors offer their own healthy menus, they are often seen as simply copying and therefore acknowledging the prescience of McDonald's in staying ahead of the consumer trend curve. The fast-food industry has been the butt of jokes and held up to general disapproval for a number of years due to charges that it offers increasingly poor choices to patrons who don’t know any better. Unlike some competitors who seem content to keep their menus unchanged and their products unhealthy, McDonald’s has been doing what is necessary to change who they are, reinvent themselves, and keep their fingers firmly on the pulse of their international customer base.

Recently, McDonald’s has been focusing on investing in technology to drive sales growth, especially in the area of digital sales. The company has been installing digital self-order kiosks in their restaurants and expanding food delivery. McDonald’s has also been ramping up its tech-focused investments. In 2019 alone, the company acquired Apprente, a Silicon Valley company using artificial intelligence to automate drive-thru orders, and Dynamic Yield, a company that specializes in decision logic technology. CEO Chris Kempczinski emphasizes the importance of technology shaping the company’s strategy in 2020 and beyond: “Digital is transforming global retail, and it will transform McDonald’s.

Share Your Insights

• In your opinion, what is the future of fast food around the world? Are consumer taste changes and concerns about healthy eating likely to diminish the demand for fast food? 
• How would you evaluate the reinvention strategy used by McDonald's? Do the changes represent a fundamental shift in the company’s competitive model, or are they cosmetic? 
• If McDonald’s hired you to advise it with regard to future trends and the changes it should consider, what would you suggest? Defend your suggestions. 
• Research the current state of McDonald’s. What are the areas in which the company plans to reinvent itself in the coming years, particularly in light of the appointment of its new CEO, Chris Kempczinski (November 2019), and the COVID-19 pandemic?

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17th May 2024

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This article has been supplied as a media statement and is not written by Creamer Media. It may be available only for a limited time on this website.

Supply chain finance is an increasingly critical aspect of supply chain management, enabling organisations to improve their cash flow, mitigate risk in their supply chains, and ensure the continuity of supply and the financial health of their suppliers, according to SAPICS (The Professional Body for Supply Chain Management).

In the public health sector, lives depend on efficient supply chains, to ensure that essential medicines, vaccines and healthcare commodities are available to patients and vulnerable communities when and where they are needed. However, the financial side of these supply chains can often be a complex hurdle that impedes the effectiveness of health programmes, SAPICS says.

Recognising the imperative to intensify the focus on finance in supply chain management, and to ensure that its members are empowered with the latest knowledge, skills, tools and technology, SAPICS has partnered with the global Supply Chain Finance (SCF) Community. This group consists of international knowledge institutions, corporations and supply chain finance professionals who share best practice and new research in an open, collaborative environment. Its founder members are leading business schools supported by corporations, banks, consultancies and technology vendors. The SCF Community aims to promote and accelerate the understanding, development and implementation of supply chain finance models.

Too many companies protect working capital by slow-paying suppliers

“Supply-chain finance today takes many forms, including early payment with dynamic discounting, inventory financing, pre-shipment purchase-order financing, and asset-based lending,” explains Luca Gelsomino, academic director at the SCF Community. “But the sector offers plenty of room for growth,” he states. “Too many companies continue to limit their efforts at protecting working capital to slow-paying suppliers. More creative solutions are needed to benefit both parties, especially at a time when economic uncertainty promises to put even more pressure on already challenged margins.” Based in The Netherlands, Gelsomino is also an assistant professor at the University of Groningen.

Supply chain finance will be in the spotlight at the upcoming 46th annual SAPICS Conference, which is Africa’s leading event for the supply chain profession. Taking place in Cape Town from 9 to 12 June 2024, it will see hundreds of attendees from around the world gather to network, learn and share knowledge through panel discussions, presentations, workshops and case studies.

A powerful practical workshop facilitated by Gelsomino is on the programme along with an insightful presentation on supply chain finance that he will share with SAPICS 2024 attendees.

Managing physical and financial flows in supply chains

These sessions will delve into the relevance of supply chain finance for today's supply chain manager. SAPICS Conference delegates will have the opportunity to work on real-world case studies, applying supply chain finance principles to day-to-day operations. “This hands-on approach ensures a deeper understanding of how supply chain finance principles can be applied to enhance cash flow optimisation, supply chain resilience and sustainable performance. In today’s rapidly evolving business landscape, the integration of supply chain and finance has become paramount for success. It is critical that we jointly manage physical and financial flows in supply chains,” Gelsomino stresses. His not to be missed contributions to this year’s SAPICS Conference have been sponsored by financial technology solutions provider Addendum, which is also a Silver Sponsor of the event.

SAPICS is hosting this year’s conference in association with the Southern African Association of Freight Forwarders (SAAFF).

Edited by Creamer Media Reporter

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In the tech world and beyond, new 5G applications are being discovered every day. From driverless cars to smarter cities, farms, and even shopping experiences, the latest standard in wireless networks is poised to transform the way we interact with information, devices and each other. What better time to take a closer look at how humans are putting 5G to use to transform their world.

What is 5G?

5G (fifth-generation mobile technology  is the newest standard for cellular networks. Like its predecessors, 3G, 4G and 4G LTE, 5G technology uses radio waves for data transmission. However, due to significant improvements in latency, throughput and bandwidth, 5G is capable of faster download and upload speeds than previous networks.

Since its release in 2019, 5G broadband technology has been hailed as a breakthrough technology with significant implications for both consumers and businesses. Primarily, this is due to its ability to handle large volumes of data that is generated by complex devices that use its networks.

As mobile technology has expanded over the years, the number of data users generate every day has increased exponentially. Currently, other transformational technologies like  artificial intelligence (AI),  the  Internet of Things (IoT ) and  machine learning (ML)  require faster speeds to function than 3G and 4G networks offer. Enter 5G, with its lightning-fast data transfer capabilities that allow newer technologies to function in the way they were designed to.

Here are some of the biggest differences between 5G and previous wireless networks.

• Physical footprint : The transmitters that are used in 5G technology are smaller than in predecessors’ networks, allowing for discrete placement in out-of-the-way places. Furthermore, “cells”—geographical areas that all wireless networks require for connectivity—in 5G networks are smaller and require less power to run than in previous generations.
• Error rates : 5G’s adaptive Modulation and Coding Scheme (MCS), a schematic that wifi devices use to transmit data, is more powerful than ones in 3G and 4G networks. This makes 5G’s Block Error Rate (BER)—a metric of error frequency—much lower. 
• Bandwidth : By using a broader spectrum of radio frequencies than previous wireless networks, 5G networks can transmit on a wider range of bandwidths. This increases the number of devices that they can support at any given time.
• Lower latency : 5G’s low  latency , a measurement of the time it takes data to travel from one location to another, is a significant upgrade over previous generations. This means that routine activities like downloading a file or working in the cloud is going to be faster with a 5G connection than a connection on a different network.

Like all wireless networks, 5G networks are separated into geographical areas that are known as cells. Within each cell, wireless devices—such as smartphones, PCs, and IoT devices—connect to the internet via radio waves that are transmitted between an antenna and a base station. The technology that underpins 5G is essentially the same as in 3G and 4G networks. But due to its lower latency, 5G networks are capable of delivering faster download speeds—in some cases as high as 10 gigabits per second (Gbps).

As more and more devices are built for 5G speeds, demand for 5G connectivity is growing. Today, many popular Internet Service Providers (ISPs), such as Verizon, Google and AT&T, offer 5G networks to homes and businesses. According to Statista,  more than 200 million homes  and businesses have already purchased it with that number expected to at least double by 2028 (link resides outside ibm.com).

Let’s take a look at three areas of technological improvement that have made 5G so unique.

New telecom specifications

The 5G NR (New Radio) standard for cellular networks defines a new radio access technology (RAT) specification for all 5G mobile networks. The 5G rollout began in 2018 with a global initiative known as the 3rd Generation Partnership Project (3FPP). The initiative defined a new set of standards to steer the design of devices and applications for use on 5G networks.

The initiative was a success, and 5G networks grew swiftly in the ensuing years. Today, 45% of networks worldwide are 5G compatible, with that number forecasted to rise to 85% by the end of the decade according to  a recent report by Ericsson  (link resides outside ibm.com).

Independent virtual networks (network slicing)

On 5G networks, network operators can offer multiple independent virtual networks (in addition to public ones) on the same infrastructure. Unlike previous wireless networks, this new capability allows users to do more things remotely with greater security than ever before. For example, on a 5G network, enterprises can create use cases or business models and assign them their own independent virtual network. This dramatically improves the user experience for their employees by adding greater customizability and security.

Private networks

In addition to network slicing, creating a 5G private network can also enhance personalization and security features over those available on previous generations of wireless networks. Global businesses seeking more control and mobility for their employees increasingly turn to private 5G network architectures rather than public networks they’ve used in the past.

Now that we better understand how 5G technology works, let’s take a closer look at some of the exciting applications it’s enabling.

Autonomous vehicles

From taxi cabs to drones and beyond, 5G technology underpins most of the next-generation capabilities in autonomous vehicles. Until the 5G cellular standard came along, fully autonomous vehicles were a bit of a pipe dream due to the data transmission limitations of 3G and 4G technology. Now, 5G’s lightning-fast connection speeds have made transport systems for cars, trains and more, faster than previous generations, transforming the way systems and devices connect, communicate and collaborate.

Smart factories

5G, along with AI and ML, is poised to help factories become not only smarter but more automated, efficient, and resilient. Today, many mundane but necessary tasks that are associated with equipment repair and optimization are being turned over to machines thanks to 5G connectivity paired with AI and ML capabilities. This is one area where 5G is expected to be highly disruptive, impacting everything from fuel economy to the design of equipment lifecycles and how goods arrive at our homes.

For example, on a busy factory floor, drones and cameras that are connected to smart devices that use the IoT can help locate and transport something more efficiently than in the past and prevent theft. Not only is this better for the environment and consumers, but it also frees up employees to dedicate their time and energy to tasks that are more suited to their skill sets.

Smart cities

The idea of a hyper-connected urban environment that uses 5G network speeds to spur innovation in areas like law enforcement, waste disposal and disaster mitigation is fast becoming a reality. Some cities already use 5G-enabled sensors to track traffic patterns in real time and adjust signals, helping guide the flow of traffic, minimize congestion, and improve air quality.

In another example, 5G power grids monitor supply and demand across heavily populated areas and deploy AI and ML applications to “learn” what times energy is in high or low demand. This process has been shown to significantly impact energy conservation and waste, potentially reducing carbon emissions and helping cities reach sustainability goals.

Smart healthcare

Hospitals, doctors, and the healthcare industry as a whole already benefit from the speed and reliability of 5G networks every day. One example is the area of remote surgery that uses robotics and a high-definition live stream that is connected to the internet via a 5G network. Another is the field of mobile health, where 5G gives medical workers in the field quick access to patient data and medical history. This enables them to make smarter decisions, faster, and potentially save lives.

Lastly, as we saw during the pandemic, contact tracing and the mapping of outbreaks are critical to keeping populations safe. 5G’s ability to deliver of volumes of data swiftly and securely allows experts to make more informed decisions that have ramifications for everyone.

5G paired with new technological capabilities won’t just result in the automation of employee tasks, it will dramatically improve them and the overall  employee experience . Take virtual reality (VR) and augmented reality (AR), for example. VR (digital environments that shut out the real world) and AR (digital content that augments the real world) are already used by stockroom employees, transportation drivers and many others. These employees rely on wearables that are connected to a 5G network capable of high-speed data transfer rates that improve several key capabilities, including the following:

• Live views : 5G connectivity provides live, real-time views of equipment, events, and even people. One way in which this feature is being used in professional sports is to allow broadcasters to remotely call a sporting event from outside the stadium where the event is taking place.
• Digital overlays : IoT applications in a warehouse or industrial setting allow workers that are equipped with smart glasses (or even just a smartphone) to obtain real-time insights from an application. This includes repair instructions or the name and location of a spare part.
• Drone inspections : Right now, one of the leading causes of employee injury is inspection of equipment or project sites in remote and potentially dangerous areas. Drones, which are connected via 5G networks, can safely monitor equipment and project sites and even take readings from hard-to-reach gauges.

Edge computing , a computing framework that allows computations to be done closer to data sources, is fast becoming the standard for enterprises. According to  this Gartner white paper  (link resides outside ibm.com), by 2025, 75% of enterprise data will be processed at the edge (compared to only 10% today). This shift saves businesses time and money and enables better control over large volumes of data. It would be impossible without the new speed standards that are generated by 5G technology. 

Ultra-reliable edge computing and 5G enable the enterprise to achieve faster transmission speeds, increased control and greater security over massive volumes of data. Together, these twin technologies will help reduce latency while increasing speed, reliability and bandwidth, resulting in faster, more comprehensive data analysis and insights for businesses everywhere.

5G solutions with IBM Cloud Satellite  

5G presents significant opportunities for the enterprise, but first, you need a platform that can handle its speed. IBM Cloud Satellite® lets you deploy and run apps consistently across on-premises, edge computing and public cloud environments on a 5G network. And it’s all enabled by secure and auditable communications within the IBM Cloud®.

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