3. How are emerging technologies such as radio frequency identification improving the way in which organizations manage their supply chains?
Radio frequency identification technologies help companies keep better track of shipments, and to keep more accurate accounts of inventory. Obviously, having RFID tags can reduce theft and spoilage by enabling companies to keep better inventory records. By reducing theft and spoilage, this leads to a more efficient supply chain. Another advantage is that if the shipment were to somehow get lost while in transit, it should be fairly easy to find it since it has an embedded RFID tag. Overall, RFID technology leads to a more efficient supply chain, which in turn can help companies better control costs.
Outsourcing Your McDonald’s Order
1. From the perspective of both McDonald’s and its customers, what are the pros and cons of outsourcing drive-through ordering?
From the perspective of the customer, one pro of McDonald’s outsourcing their fast food service is that the process will become more streamlined. For example, the customer would not have to wait at a long line at the drive-through and can just simply order online.
Another pro is that the customer can easily see the menu online, and they do not have to delay the ordering process for other customers. One con of outsourcing the drive-through service is that the quality of the food could possibly suffer. If someone worked anywhere from 15-20 minutes away from a McDonalds and ordered right after work, the order would be processed automatically into the management queue. By the time the customer got there, the food would be cold. This process works better for pizzas, because they take 30 minutes to cook. Another con would be the loss of human interaction. Some people like the one on one interaction with the server, because the server can relate to the person on a personal level unlike a computer.
From the perspective of McDonald’s, one pro is that it can cut down costs. They will not have to worry about paying a server to serve the drive-through and it is very easy and cost effective to start an outsourced web service for ordering food. Another pro is that the process becomes more streamlined on the employee side, as well as the customer side. By customers ordering online, employees can clearly see the order on their screen besides having to rely on a customer’s voice. One con is the possibility of a system failure. With personal communication, it is fairly easy to take an order on a piece of paper if the system were to fail. With everything outsourced and online, a failure would lead to a complete stall in ordering and lost revenues. Another con relates to the con for customers. There is a high probability that the quality of the food could suffer by outsourcing since it is fast food, and this can lead to large customer complaints and possibly lose some customers.
2. What risks to customer relationships does a local McDonald’s restaurant assume when utilizing outsourced drive-through service? How can these risks be minimized?
As mentioned, by the drive-through service being outsourced you lose the personal one on one communication. If the McDonald’s is in a fairly small town, such as Hattiesburg, this can lead to customer complaints because they like to one on one personal connection. These risks can be minimized by having a customer support hotline available through the outsourced service, and the hotline will lead you to a direct employee of your local McDonalds.