On January 4th, McDonald's China and Cainiao Group signed a strategic cooperation agreement on supply chain digitalization construction. According to the agreement, both parties will start with the Radio Frequency Identification (RFID) project and deepen the implementation and implementation of Cainiao RFID solution in McDonald's supply chain. At the same time, they will jointly explore cooperation in supply chain digitization, automation, and other aspects to help McDonald's China's supply chain digitization construction, improve supply chain efficiency and traceability capabilities, and improve customer and employee experience.
Taking the Internet of Things as an example, according to the agreement, McDonald's China will deploy Cainiao RFID technology in the food supply chain. McDonald's China will implant Cainiao RFID tags on food packaging materials. Due to RFID's group reading function and unique identification code, products can have a unique "digital ID card" that connects the "production logistics restaurant" process. This not only effectively improves the efficiency of goods inventory and logistics, but also helps to create end-to-end intelligent logistics, achieve digital monitoring and traceability, and supply chain information interconnection and collaboration. In the RFID pilot project currently being jointly promoted by McDonald's China and Cainiao, the daily inventory time required by restaurants has been reduced from one hour to 15 minutes, and the accuracy of inventory data has been improved by 30%.
McDonald's is a globally renowned food and beverage service brand with nearly 40000 restaurants worldwide, receiving over 68 million customers every day. As a leader in industry supply chain capabilities, McDonald's has consistently ranked among the top 25 global supply chain companies in the global supply chain research and consulting firm Gartner. Rooted in China for 33 years of development, McDonald's has nearly 5800 restaurants and over 200000 employees in China, making it the second largest and fastest growing market in the world. McDonald's China fully leverages its influence to drive the upstream and downstream supply chains to continuously promote digital layout and construction under the "three legged stool culture", and continuously explore digital solutions and forward-looking innovative measures in the supply chain field. In China, McDonald's has a 100% localized data and IT team, established an IT strategic R&D center, strengthened internal R&D and capacity building, and made digitalization a new driving force for business growth. McDonald's digital platform in China seamlessly links new consumer needs and changes.
As a global leader in the e-commerce logistics industry, Cainiao not only applies technology to every aspect of logistics operations, but also provides a complete set of practical and cost-effective technological solutions to the outside world. With its leading advantage in supply chain digitalization, it has successively launched a series of technological cooperation with the top ten fast-moving consumer goods giants worldwide. Cainiao's rich accumulation in automation, digital supply chain, and the Internet of Things has greatly promoted the improvement of quality, efficiency, and digital upgrading of leading enterprises in the industry. In the agreement signed between Cainiao and McDonald's China, the above-mentioned technology applications have also become the main direction of cooperation between the two parties.