Procurement magazine August 2025 | Page 88

MCDONALD’ S
AI IN PROCUREMENT
Digital transformation accelerates operations The use of AI in McDonald’ s’ operations came to the forefront in 2020 as part of its Accelerating the Arches growth strategy, which saw the organisation begin emphasising digital transformation, including the use of data analytics for smarter operations.
The last five years have seen it grow to be a fundamental tool for the business. A watershed moment came in 2023, when the company announced a multiyear partnership with Google Cloud to“ leverage a wide range of Google Cloud’ s hardware, data and AI technologies” across its restaurants.
As McDonald’ s Global CIO Brian Rice explained at the time, connecting restaurants worldwide to millions of data points means“ tools get sharper, models get smarter, restaurants become easier to operate and, most importantly, the overall experience for our customers and crew gets even better.”
In practice this digital platform modernisation is intended to improve demand forecasting and inventory planning, among other applications, by turning massive real-time pointof-sale and operational data into actionable insights.
“ Through this wide-ranging partnership, Google Cloud will help McDonald’ s seize on new opportunities to transform its business and customer experiences, empowering restaurants worldwide with the latest technologies for near-term impact,” said Thomas Kurian, CEO at Google Cloud.

MCDONALD’ S

HEADQUARTERS: CHICAGO, US NUMBER OF EMPLOYEES: 150,000 REVENUE: US $ 210.66BN NUMBER OF COUNTRIES: 119
“ Pairing the iconic brand, size and scale of McDonald’ s with Google Cloud’ s deep history in AI and technology innovation will redefine how this industry works and what people expect when they dine out.”
Smart warehouses and cold chain innovation In 2024, McDonald’ s and four of its major suppliers unveiled the Hubei Smart Food Industrial Park in China. The site was created thanks to a combined investment of CN ¥ 1.5b( US $ 206m) and launched in partnership with Bimbo QSR, XH Supply Chain, Tyson Foods Inc and Zidan, McDonald’ s China’ s major suppliers. Smart warehouses continuously monitor inventory levels and supplier capabilities, triggering automated restocking based on predicted demand patterns. Meanwhile, cold chain logistics incorporates Internet of
88 August 2025