Ensuring Product Safety in a Global Organisation

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• Ensuring Product Safety in a Global Organisation
• Thibault Cruse
• Director Business Affairs
• McDonalds Europe

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Introduction
McDonalds Worldwide

• As part of our Global strategic plan, which we
  take extremely seriously, we care about the 5
  Ps
• - People
• - Product
• - Promotion
• - Place
• - Price
• Worldwide there are 30.000 restaurants in 119
  countries and 1.6 million McDonalds employees.
• Worldwide we will distribute over 1,6 billion
  toys in our Happy Meals in 2006 for Europe it
  will be 400 millions toys

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Introduction
McDonalds Europe
278.000 employees
41 countries
UK Germany France
2nd largest Business Area worldwide with 6.300
restaurants.
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Issue
Why Essential Product Safety?

• To safeguard our (youngest) customers.
• Prevention of loss of life, limb or
  function.
• To ensure confidence of consumers.
• To protect the McDonalds brand.

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Who do our toys go to?
Our youngest customers
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McDonalds Safety Track Record
U.S. Toy Industry vs. McDonalds
U.S. Toy Industry McDonalds



Deaths
5
0
Hospitalisation
2.249
0
56.214
Minor Injuries
29
Numbers are based on per billion toys produced
and data available from 1994-2003. Quantities for
the total toy industry beyond year 2000 were
projected from dollar values, by benchmarking
with dollar and unit inputs of year 2000
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Challenges to overcome
McDonalds Global Supply Chain

• Having a clear safety and quality policy in
  place and connecting all facets of our Supply
  Chain partners
• regardless of
• - country
• - culture
• - language

• Transfering this message to all involved parties
  (Vendors, Transport companies, Marketing
  Agencies, Supply Chain departements,
  Restaurants) around the globe requires an
  extremely effective and complex safety process.

• Support and involvement of Senior Management in
  all
• phases of the Supply Chain is crucial.

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Policy
McDonalds Policy
Every premium distributed to children within
McDonald's in any country of the world and in any
restaurant of the world MUST/ WILL be
rigorously assessed and MUST/ WILL follow the
McDonald's Product Safety Process!
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Process
McDonalds Safety Process
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Safety Partners
McDonalds Safety Agencies

• McDonalds recognises and engages the most
  exacting professional resources (safety
  agencies) in Europe and across the world to
  ensure its products are safe (legal
  compliance vs. essential safety).

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Issue
Happy Meal Business

• The Happy Meal accounts for 20 of McDonalds
  sales with over 15 BILLION toys distributed
  worldwide in our 25 years Happy Meal history.

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Conclusion
In Conclusion

• Consumer product safety can be effectively
  managed in large global, decentralized
  organizations to the positive benefit of
  consumers and business.
• This requires sound corporate leadership and
  engagement in all levels of business globally.
  The benefits are significant which can be seen
  from the track record of our company.

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Thank you for your attention!