Expenditure Process

Mcdonald’s expenditure cycle is centered on the E-Mac Digital, which is the E-Procurement
Model that is developed through the partnership of mcdonalds with Accel-KKR, Inc. E-mac
digital is created so that the cycle would be optimized.
The expenditure process includes the requisition of goods, supplier selection, ordering process,
receipt and payment.

As you can see in the figure, the cycle is centered with E-mac Digital.
It starts with the global franchisee that will order supplies or goods that they need. The goods
or supplies that are being ordered would be based on either cycle view or push/pull view. Cycle
view is where the goods or supplies to be ordered is based on what the customers have
ordered that results in lack of specific supply in the inventory. While push or pull view based
their orders on 1) what the customers have ordered like in the cycle view and 2) their
anticipated supply that would be needed by them for example when they are launching a new
product, relaunching an old product or if they see that a specific product would be bought
frequently this season. This order of supplies will be put on emac digital to find which supplier is
available for the order. After finding the supplier, the supplier then approves the order and
would go again through emac digital to find which logistics is available to deliver the purchased
supplies. Next is the logistics will notify the franchise that they would deliver the ordered
supplies and proceed to the delivery. After receiving the purchased supplies, the franchisee
would pay the supplier through emac digital.