On January 4th, McDonald’s China signed a strategic cooperation agreement with Cainiao Group for the digitalization of its supply chain. According to the agreement, the two parties will start with the Radio Frequency Identification (RFID) project and further promote the landing and implementation of Cainiao’s RFID solution in McDonald’s China’s supply chain. They will also explore cooperation in supply chain digitalization and automation to help McDonald’s China enhance its supply chain digitalization, improve supply chain efficiency and traceability, and enhance customer and employee experiences.

Taking the Internet of Things (IoT) as an example, according to the agreement, McDonald’s China will deploy Cainiao’s RFID technology in its food supply chain. McDonald’s China will implant Cainiao’s RFID tags on product packaging, enabling products to have a unique “digital ID”that connects the “production-logistics-restaurant” links. This will not only effectively improve inventory counting and logistics efficiency but also help create an end-to-end intelligent logistics system, achieve digital monitoring and traceability, and enable supply chain information interconnection and collaboration. In the RFID pilot project currently being promoted by McDonald’s China and Cainiao, the time required for daily inventory counting in restaurants has been reduced by 75%, and inventory data accuracy has approached 100%.

McDonald’s is a globally renowned food service brand with nearly 40,000 restaurants worldwide, serving over 68 million customers daily. As a leader in industry supply chain capabilities, McDonald’s has consistently ranked high in the Global Supply Chain Top 25 list compiled by the global supply chain research and consulting firm Gartner. Rooted in China for 33 years, McDonald’s has nearly 5,800 restaurants in China and employs over 200,000 people. It has become McDonald’s second-largest market globally and the fastest-growing market. McDonald’s China fully leverages its influence to drive upstream and downstream supply chains under the “three-legged stool culture,” continuously promoting digital layout and construction, and exploring digital solutions and forward-looking innovation initiatives in the supply chain field. In China, McDonald’s has a 100% localized data and IT team, established an IT strategic research and development center, strengthened internal research and development, and capacity building, making digitalization a new driving force for business growth and seamlessly connecting McDonald’s China’s digital platform with consumers’ new needs and changes. As a global leader in the e-commerce logistics industry, Cainiao not only applies technology to every aspect of logistics operations but also provides a comprehensive set of practical and cost-effective technological solutions externally. With its leading advantage in supply chain digitization, Cainiao has successively launched a series of technology collaborations with the world’s top ten consumer goods giants. Cainiao’s rich accumulation in automation, digital supply chain, and the Internet of Things has greatly promoted the quality improvement and digital upgrade of industry-leading enterprises. In the agreement signed between Cainiao and McDonald’s China, the above-mentioned technological applications have become the main direction of cooperation between the two parties.