The entire supply chain in China is unsophisticated and aboriginal. Despite having the highest population in the world, the entire food supply chain still relies on small food processing companies that are inefficient and lack mass production technology. This also reflects that very few large end users are willing to support the construction of large food processing plants (Wang 2011). Although McDonald's supply logistics management in China has taken a step forward with the entry of the Havi Group, McDonald's major U.S. distribution manager and Havi have established wholly foreign-owned Husi Food Co. Ltd., which will serve as a consolidator. and distributor of virtually all McDonald's products in China, the full takeover by the Havi Group has not yet been achieved (Chinaadopttalk.com 2008), consequently the small and inefficient local supply chain will make it difficult for McDonald China to manage the market supply side. In the case of McDonald's China, it needs its location to be closer to individual customers and the nearest supply points in order to control transportation costs, attract as many customers as possible, and also reduce response times to changing customer demands. customers in terms of changes in the production volume required and transportation costs incurred (Chinaabout.net
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