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For a firm as large as McDonald’s logistics is an area where proper planning results in increased efficiency. Because of its size, little improvements in the way it handles materials adds up. Conversely, a few, seemingly simple lapses can cost the company millions.
Purchasing is the most costly activity in most firms. For the fast food industry, the cost of purchases as a percentage of sales is often substantial. Because such a huge portion of revenue is devoted to purchasing, an effective procurement strategy is vital. Purchasing provides a major opportunity for management to reduce costs and increase contribution margins...
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