McDonald's China to ramp up smart supply chain

McDonald's China has unveiled the progress of its smart supply chain project at the China International Supply Chain Expo in Beijing, with a focus on enhancing fresh, safe and traceable practices and green agriculture.

Phyllis Cheung, CEO of McDonald's China, said: "The expo offers an excellent platform to deepen exchanges with our supply chain partners, drive innovation and efficiency, and advance sustainable development to better serve our customers with fresh, natural and trusted ingredients."

The company's long-term success relies on three pillars that are built on the strong foundation of collaboration among employees, franchisees and suppliers, she added.

During the expo, the company announced the nationwide rollout of its "One Case, One Code" project, integrating advanced technologies provided by Cainiao and involving key suppliers such as Bimbo and Tyson.

The project will expand nationwide, with plans to include over 100 supplier factories.

As the first large-scale application of this technology in the domestic restaurant industry, McDonald's China uses RFID (radio frequency identification) and other technologies to assign a unique digital identity to each product package, enhancing digital collaboration and precise management throughout the supply chain.

For example, restaurant receiving and inventory-checking efficiency has improved by more than 30 percent and inventory information is visible across the entire chain. Production and logistics are enabled with more agile demand and supply planning.

McDonald's China operates more than 6,500 restaurants, with more than 2,000 logistics vehicles serving its supply chain every year.

The company unveiled its first cultural and creative product — the McFarm Calendar — celebrating its practices in green agriculture.

McFarm is the traceability and consumer engagement platform, reaching over 34 million viewers through livestreamed tours and videos, showcasing the origins of fresh, natural ingredients.

The calendar features traditional farmers' art and highlights stories of 12 farmers who contribute to the company's regenerative agriculture plan.

Limited to 5,000 sets, the calendars are available through McDonald's official app from Wednesday to Friday.

Additionally, 20 restaurants in 15 cities will be transformed into McFarm-themed locations, offering immersive experiences to connect consumers with green agriculture.

Since launching the regenerative agriculture plan in 2023 with nine suppliers, McDonald's China has trained nearly 5,000 farmers in 2024.

This year, the company introduced its first cage-free chicken logo in June, promoting animal welfare. White-feather chickens, raised cage-free, walk over 1,000 steps daily and are housed in clean, temperature-controlled environments.

At its booth in the expo, a 20-square-meter farmer art installation created from 300 recycled McDonald's paper bags was showcased, highlighting the sustainable practices behind cage-free chicken production.

Full-chain data visibility and traceability further strengthen food safety and quality with advanced technological safeguards, said the company.

Jim Shi, chief supply chain officer of McDonald's China, said the company and its suppliers are committed to building a smart supply chain for the future through the development of digital productivity tools.

The company has improved efficiency and accelerated innovation in its supply chain but also elevated the quality of operations and management, he added.

wangzhuoqiong@chinadaily.com.cn