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Interview with McDonald's CEO in China: Investing in and Developing Smart Supply Chain in the Chinese Market with Long Term Optimism

王俊杰2017
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"McDonald's globally increased its stake in McDonald's China business from 20% to the current 48%, simplifying the entire equity structure. The only reason for making such a decision is to have a positive outlook on the development of the Chinese market." Zhang Jiayin, CEO of McDonald's China, gave this answer in a recent interview with media such as China News Agency in Xiaogan, discussing how to view the development and business environment of the Chinese market.
Recently, McDonald's China, along with its four major suppliers, Binbao, Shunxinhui, Tyson, and Zidan, announced the official launch of the McDonald's China Supply Chain (Hubei) Smart Industrial Park. The park is jointly invested by McDonald's China and its four major suppliers with a total investment of 1.5 billion yuan, aiming to build the industrial park into an industry benchmark for green development and smart supply chain.
McDonald's China Supply Chain (Hubei) Intelligent Industry Park's automated factory. Photo by Wang Yan
Entering the automated chemical plant in the industrial park, the ground QR code serves as the "navigation" for short shuttle logistics transport vehicles, shuttling back and forth in the workshop without interfering with each other; At the end of the warehouse, various packaged foods undergo box by box induction scanning, and are sorted and aggregated on conveyor belts according to the needs of different stores
Zhang Jiayin said that currently, the Chinese market has become McDonald's world's second largest market and also the fastest-growing market. The landing of the smart industrial park this time has a strategic location advantage, which can radiate to 8 provinces in the central and western regions, providing sufficient, stable, and reliable supply to 2000 restaurants in the future from products, packaging to logistics.
In Zhang Jiayin's view, McDonald's global optimism about the Chinese market is long-term, especially in the fields of smart supply chain and green low-carbon.
It is reported that in the smart industrial park factory, through supply interconnection, suppliers and McDonald's China have achieved information interconnection, traceability of food ingredients and production, monitoring of production efficiency and efficiency, and can further optimize production scheduling by combining algorithm engines. In an automated warehouse, the control hub can analyze the inventory and supplier capacity in real-time, and automatically replenish goods based on demand forecasting.
"Behind every business or investment decision, we think about the execution capability of the supply chain," said Zhang Jiayin. For example, more intelligence can be used to do better and faster links, allowing each accumulated execution capability to bring returns.
In addition, for McDonald's, the Chinese market also has a complete industrial system, deep talent reserves, rich innovative application scenarios and market space, all of which have laid a good foundation for McDonald's development in China.
"China's practice has brought new inspiration to the world. We hope to tell the story of China well, while actively learning from advanced foreign experiences, integrating local vitality and global standards through the spirit of integration, and opening up a two-way perspective of localization and globalization." said Zhang Jiayin. (End)
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