Q1.

Bidding contacts are those contacts in which the suppliers offer discounts, less costs and
higher profit and in most of the cases different suppliers are chosen. McDonalds doesnt go for
bidding contacts because McDonalds trains their supplier, have a standardized products and
carefully craft each of their products in a way to get the best and some quality. Hence,
McDonalds doesnt use bidding contacts because every time they wouldve to choose new
supplier (which wouldnt allow them to make long-term relationships.),moreover they focus on
quality, the lower cost the bidden would offer, the less the quality would be; also the stability in
the supply chain would be harshly affected. Quality inspector programme (Q/P) enables them to
provide best quality, by bidding contacts it would lower their quality, resulting in loss of market
share and lower satisfaction lasting ground to other food chains. Therefore, McDonalds avoid
bidding contacts instead work with local farmers to come out with best quality and endless longterm relationship.
Q2. McDonalds has been able to lower the costs and maintain sustainable supply chain in the
following way:
Firstly, McDonalds was quality inspection programme (Q/P) that enables them to cut down
operational wastage resulting in reducing costs. Secondly, those are different paints in cold chain
and have refrigerated trucks with multi temperature which able them to provide standardized
product with sustainable supply chain. Moreover, they reduce the costs through designing the
franchise in a way that fulfills every customers (for e.g., they provide drive thrus, walk thrus as
well as dinning) so one franchise fulfills three types of customers resulting in reduced costs.
Also, they work with local farmers and design in a way that not only enables them to maintain
sustainable supply chain but also reduces the costs. lastly, they have values of QSCV and all

mac restaurants have busting cold storage units having three zones- freezers, chiller and ambient
that works in forever of sustainable supply chain and provide standardized products.