Supply Chain of

C Donald’s

Shailendra Singh RajputMBA-AB 2011-13

Quick facts about

• McDonald's was started by two brothers, Richard and Maurice McDonald in California, US in the year 1937.

• Ray Kroc, distributor for milkshake machines, expressed interest in the business, and he finalized a deal for franchising with the McDonald brothers in 1954.

• In 1961, he bought out the McDonald brothers' share for $2.7 million and changed the name of the company to McDonald's Corporation. In 1965, McDonald's went public…

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C Donald’s:

Reference: mcdonalds.com

C Donald’s history India:• Entered in India 1996.• India is 50-50 JV partnership between

C Donald’s Corp. USA & two Indian businessman Amit Jatia and Vikram Bakshi.

• Trained extensively with their Indian management team in Indonesia and

USA before launch.• The entire menu was changed.• 90% of C Donald’s business is owned and run by independent franchisees in India.Reference: mcdonaldsindia.com

Extended Hours

Pricing Food Innovation

Operation Excellence

Brand Trust

Key business drivers & potential:

38 supplier throughout India & several standalone restaurants working with it for various requirements

Distribution Centers:

Reference: mcdonaldsindia.com

Where the food comes from: C Donald’s Supply Chain

Reference: logistics.bafree.net

Mc Donald’s India sources its ingredients from local suppliers who are an integral part of the cold chain.

Refrigerated trucks with multi-temperature facility divided into 3 zones- freezer,chiller, and ambient to ferry product demanding varying temperatures from supplier location to the distribution centre.

Reference: National Retail Federation-Case Study

Distribution centre is also divided into multi-temperature zones , as are the trucks for storing products. With freezer at 0 degree F to 33 degree F , chiller at 33 degree F to 40 degree F, and room temperature.

Reference: National Retail Federation-Case Study

Restaurants have in built cold storage units subdivided into same aforesaid zones –freezer, chiller ,and ambient.

Reference: National Retail Federation-Case Study

Consumer/outlets

38 suppliersacross the country

Procurement logisticFood /nonfood:Frozen , chilled & any dry goods

Warehousing & packaging

Distribution logistics

Food /nonfood:Frozen , chilled & any dry goods

C Donald’s Supply Chain (160 restaurants across the country)

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Supply of ingredients:

Sesame seedsGhaziabad, UP

BunsShah & sons, Khopoli ,MH &Cremica Industries,Noida

Iceberg lettuceTrikaya Agriculture , Talegaon MHMeena Agritech ,DelhiFerrocoa Farm, Dehradoon

Special vegetarian sauce(Eggless)Quaker Cremica, Phillaur,Punjab

Batter & BreadingCremica Industries, Ludhiana ,Punjab

Vegetable Patty(Made from fresh Peas,Carrots,Green beans,Potatoes and Rice) Kiltran foods, Taloja MH

Reference: mcdonaldsindia.com

“The basic purpose of a supply chain is to coordinate the flow of materials, services, and information along the elements of the supply chain to

maximize customer value.”And this is what we did….

Ray Kroc

LESSONS:

• Look before you leap. (Mc Donalds did an extensive research before venturing into this nation for more than 4 years and put in 450 crores plus during those times, to develop its supply chain)

• In Rome , do as Romans do!

Mc Donalds customized its products to Indian taste-buds, also to connect to the public, avoided pork and beef products. In addition the processing lines for vegetable and non-vegetable products are kept separate.

• Principle of mutual need: If one can assure one’s vendor that both are interdependent on each other,the trust must carry the relationship. In other words-“You must allow market forces and not binding agreements to determine just who the constituents of your supply chain will be.

Thank you…!!!