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McDonald's and Dynamic Yield Changing the Supply Chain



In recent years, McDonald's has been making significant progress in advancing its technology. Among other technologies, they've introduced self-serve kiosks, a global mobile app, and digital menus in their restaurants. All these technologies are aimed at improving their customer experience and increasing their competitive advantage. With their recent acquisition of Dynamic Yield, McDonald's is seeking to further advance their technology in their customer experience and supply chain spaces. Dynamic Yield is an AI-powered personalization platform that uses predictive algorithms to deliver more personalized customer experiences.

The algorithms are able to predict purchasing patterns based on time of day, weather, or traffic, and can adjust menu suggestions to meet these predictions for customers in the stores or drive-throughs. Dynamic Yield would also allow the kiosks or mobile app ordering system to suggest additional products to customers based on their current selections. These additions will help to make McDonald's one of the first companies to integrate predictive algorithms at the customer points-of-sale in stores. Another major benefit of these decision algorithms is the ability for McDonald's to utilize the predictions of customer purchasing patterns to make decisions further up their supply chain. This would allow stores to reduce stock and wasted products without increasing the amount of out-of-stock incidents.

McDonald's began testing these algorithms in select markets in 2018 and will roll out the technology to all US stores in 2019. They aim to continue to roll out the technology to other major markets in the future.

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