Innovative approaches to the system logistic provider’s profit calculations
MAGAZINE №2 (55) April 2013
AUTHOR Kapkov S.
CATEGORY Controlling Corporate logistics retailers Providers of logistics services
ABSTRACT
The article is dedicated to descriptions of cooperation principles methodology alignment between McDonald’s corporation and it’s distributor HAVI logistics Russia.First of all the article is focused to evolution of the profit calculation approaches and the influence of the mentioned processes to the cost and service levels. The key innovation is the development and implementation by the author the new profit calculation system “Pay for Performance” when the part of profit is directly depends on service level and project execution reached by the distributor. It is very important to mention the high formalization and detailed elaboration of the new scheme, which provides to distributor required motivation both on corporate and personal level.
The initiatives applied can helps to achieve qualitative progress in McDonald’s restaurants serving, which was positively reflected on KPI’s and the cost savings as a result of several unique innovative projects implementation.The best practices describes in the article could significantly increase the competitiveness of McDonald’s logistics structure and consequently McDonald’s is still have the position number one in the quick service restaurants market.
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