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,

Prev Next Index