From servant to driving force : Transforming the role of the supply chain in McDonald’s The Netherlands

Abstract

Today, McDonald’s The Netherlands runs 80 per cent of the supply chain in a different way from three years ago. That qualifies as a transformation — a radical 180-degree change. This paper is about how supply chain management can earn a seat at the table. It describes how change came about in McDonald’s — and the efforts it took. It is about the transition of supply chain management moving away from the ‘serving’ role of (just) getting the necessary things done to keep the restaurant business operation going. It is about learning how to be a driving force, playing a central role in the organisation. The paper presents a new approach to supply chain management: the idea, the practice, with the pros and cons, and the current outlook. This approach is based on three key steps: 1) creating strong alignment on shared goals between all stakeholders connected to supply chain, the balancing act of ‘the doughnut of stakeholders’; 2) building a new skill set for supply chain professionals to take a central role in this balancing act, geared towards seamless cooperation and better results; and 3) fully utilising and empowering all internal and external stakeholders within the supply chain system. Over the past three years, the supply chain department of McDonald’s The Netherlands has moved towards a new position as facilitator and manager of a dialogue-style process of innovation, development and progress. In this position, supply chain management drives meaningful change while taking into account the needs and interests of all stakeholders ‘in the doughnut’. In the new approach, no stakeholder gets told what to do; supply chain management is the neutral and respected facilitator of change and innovation. It has led to a new way of working, a new positioning internally and, most importantly, a more future-proof supply chain organisation that yields better results, both commercially and in terms of sustainability.