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Projects: Supply Chain



Fast Food Fails Digital Networking Test



By Larry Barrett

  Table of Contents:
  1. Fast Food Fails Digital Networking Test
  2. ' INTO THE FRYER'
  3. ' THE SPECIAL SAUCE '
  4. ' TURNS AND RETURNS'
  5. ' FOOD, FOLKS AND FORECASTING'
  6. ' MCDONALD'
  7. ' MCDONALD'
  8. ' BASE TECHNOLOGIES'

McDonald's planned to spend $1 billion over five years to tie all its operations in to a real-time digital network, but the project failed before it even got off the ground.

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Fast Food Fails Digital Networking Test - ' MCDONALD'


( Page 6 of 8 )

'S BASE CASE">
MCDONALD'S BASE CASE
Headquarters: McDonald's Plaza, Oak Brook, IL 60523
Phone: (630) 623-3000
Business: World's largest fast-food restaurant chain serving more than 46 million customers each day at more than 30,000 locations in 121 countries.
Chief Information Officer: Dave Weick
Financials: $893 million net income in 2002; $2.1 billion operating income; $15.4 billion revenue.
Challenge: Implement worldwide digital network and enterprise resource planning system for financial data, human resources and supply-chain management applications.

BASELINE GOALS:
  • Increase sales by at least 3% to 5% in 2003.
  • Improve operating income by 5% to $2.2 billion by 2005.
  • Cut capital expenditures to $1.2 billion in 2003, down $700 million.
  • Cut the length of time needed for managers to collect and analyze individual restaurant sales and inventory from more than one week to a little as a minute.

     
     
    >>> More Projects: Supply Chain Articles          >>> More By Larry Barrett
     


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