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 doesn’t 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 uality. !ence, McDonalds doesn’t use bidding contacts because every time they would’ve to choose new supplier "which wouldn’t allow them to ma#e long$term relationships.%,moreover they focus on uality, t he lower cost the bidden would offer, the less the uality would be& also the stability in the supply chain would be harshly affected. Quality inspector programme "Q'(% enables them to provide best uality, by bidding contacts it would lower their uality , resulting in loss of mar#et share and lower satisf action lasting ground to other food chains. )herefore, McDonalds avoid bidding contacts instead wor# with local farmers to come out with best uality and endless l ong$ term relationship. Q*. McDonalds has been able to lower the costs and maintain sustainable supply cha in in the following way+ irstly, McDonalds was uality inspection programme "Q'(% that enables them to cut down operational wastage resulting in reducing costs. -econdly, those are different paints in cold chain and have refrigerated truc#s 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 thru’s , wal# thru’s as well as dinning% so one franchise fulfills three types of customers resulting in reduced costs. lso, they wor# with local farmers and design in a way that not only enables them to maintain sustainable supply chain but also r educes the costs. lastly, they have values of Q-/0 and al l
