Day 125 - 12 May 95 - Page 38
1
2 Q. Sorry, we are talking about meat suppliers. So, was it
3 easier to control or police the quality of the product when
4 you had just five suppliers?
5 A. Yes, it was. Obviously, five plants are easier to
6 oversee or monitor the quality of those plants, and I would
7 say, additionally, the fact that those plants supplied
8 thousands of restaurants meant that they could afford to
9 have state-of-the-art equipment, they could afford to have
10 better quality management, better supervision at the
11 plants; it also meant they were able to devote a portion of
12 their budget to ongoing research, ongoing development of
13 technology. Our suppliers have been instrumental, in many
14 case, s in helping to improve the McDonald's system, the
15 method of delivery, the quality of product, etc. They have
16 been as much a contributor to our success, as our
17 franchisees, and as we have. You know, you read in the --
18 in your reading you saw there they have been innovative,
19 and they indeed have been, and I think we have benefited
20 from that. So, yes, it has been real plus for us. It has
21 helped us to make sure that our customer-view, our
22 customer ---
23
24 MR. MORRIS: I am not actually a customer ----
25 A. Well, maybe one day. -- have had the chance of ---
26
27 MR. JUSTICE BELL: Let us leave it.
28 A. -- that you would get a better product. That the
29 quality was going to be on the up and up.
30
31 MR. MORRIS: So, with five suppliers whose business really is,
32 or may not be, exclusive but dependent on McDonald's, they
33 are going to be a loyal part of McDonald's family or
34 whatever?
35 A. They have been. They are independent, by the way.
36
37 Q. I understand that. I understand that is your position.
38
39 MR. RAMPTON: No, my Lord -----
40
41 MR. JUSTICE BELL: Do not bother, Mr. Rampton.
42
43 MR. MORRIS: I do not want to say something which seems I am
44 necessarily agreeing with everything.
45
46 MR. JUSTICE BELL: Leave it there. Carry on with your question.
47
48 MR. MORRIS: Could you give us some examples of problems that
49 you had with your beef suppliers, when you had a lot of
50 them, which were in terms of adhering to your
51 specifications or something, which improved when you had
52 just five and you could police them better and they were
53 more loyal and whatever; can you give us some examples of
54 how you could show that?
55 A. Sure.
56
57 Q. Those improvements?
58 A. Sure, a couple of quick examples would be in the case
59 of fresh meat. Some of the suppliers that we sacked would
60 put ice in the meat which would add weight to the products,
