November 27-Hangzhou/Cainiao, the global leader in e-commerce logistics,has partnered with McDonald's China and its supplier network to launch a cutting-edge smart supply chain solution based on the "One Box, One Code" initiative. The RFID and IoT technology has already been rolled out across various upstream factories, logistics centers, and McDonald’s restaurants. The system has been successfully tested in pilot markets across the entire product and supply chain, and will soon expand nationwide, with over 100 supplier factories expected to join, accelerating its adoption throughout McDonald's China’s supply chain.

As the first large-scale digital transformation in China’s foodservice sector, McDonald's China, in partnership with Cainiao, is leveraging RFID and other IoT technologies to assign a “digital ID” to each package. This innovation improves digital coordination and management across the entire supply chain. For instance, restaurant receiving and inventory processes have become over 30% more efficient, with real-time inventory data now visible throughout the entire supply chain. This visibility enables more accurate demand forecasting and supply planning, while also adding an extra layer of security to ensure food safety and maintain product quality.

With over 6,500 restaurants and more than 2,000 logistics vehicles covering 80 million kilometers annually, McDonald's China has been building a smart supply chain since 2021 to address the sector's complexity.

The "One Box, One Code" project is key to this transformation. However, applying RFID technology in the foodservice industry presents challenges, including long supply chains, diverse product types, manual processes, and limited system integration. Certain products, like liquids or those with metallic packaging, can also affect RFID accuracy.

Since 2022, Cainiao and McDonald's China have been exploring advanced RFID technology for the foodservice sector. After over two years of R&D, the project team has revamped the software, hardware, and processes across the supply chain. Key nodes are now equipped with end-to-end digital systems and IoT infrastructure, boosting efficiency and accuracy throughout the supply chain.

This project removes barriers between factories, logistics centers, and restaurants, providing full traceability of product information. It represents a groundbreaking use of RFID technology in the restaurant supply chain, a first in China, and solidifies McDonald's China’s position as a global leader in this field.