(Yicai) Jan. 5 -- McDonald’s China is teaming up with e-commerce giant Alibaba Group Holding’s express delivery arm to digitize its supply chain so as to help the Chinese division of the US fast-food giant improve the efficiency of its procurement and distribution channels as well as enhance the consumer experience, Securities Times reported today.

McDonald’s China will leverage Cainiao Group’s industry-leading strengths in automation, digital supply chains and the Internet of Things to drive the digital layout of its upstream and downstream supply chains and improve automation, the report said

The project will use radio frequency identification, which is a wireless identification system that can automatically identify and track tags attached to objects, the report said. The tie-up should slash the time needed by restaurants to do a daily inventory to 15 minutes from 1 hour and hike the accuracy of inventory data by 30 percent, it added.

McDonald’s has nearly 5,800 outlets in China, and the country is the Chicago-based company’s second-largest and fastest-growing market in the world.

Editor: Kim Taylor