7/30/2019 mc donalds scm

1/28

Supply Chain of

C Donalds

7/30/2019 mc donalds scm

2/28

7/30/2019 mc donalds scm

3/28

7/30/2019 mc donalds scm

4/28

A supply chain includes the chain of entities involved in planning,procurement, production and distribution of products and services.

The process includes:

Plan Source Make Deliver

WHAT IS SUPPLY CHAIN MANAGEMENT ???

7/30/2019 mc donalds scm

5/28

1. Inbound Supply Chain: The inbound supply chain pertains

mainly to providing raw materials and components to anorganization. It includes supplier development, supply

management, joint cost reduction, target costing, value

engineering, import substitution.

2. In house Supply Chain: It relates to the physicalconfiguration of the conversion process. It includes demand

management, master production scheduling, materials and

capacity planning, distribution requirement planning, lay out

and facilities management , materials and handling, co-

ordination with supply chain partners.

3. Out bound supply chain:The outbound chain pertains to the

distribution of goods and services to the end customers. It

involves logistics management, ware housing, distribution

and channel management.

SUPPLY CHAIN COMPONENTS

7/30/2019 mc donalds scm

6/28

Entered in India 1996

McDonald's India is a 5050 JV

partnership between MCDONALDSCORPORATION (U.S.A) and twoIndian businessman Amit Jatia andVikram Bakshi

Localisation: DONT OFFER ANY BEEF OR PORK

ITEM IN INDIA

IN PRODUCT LIKE MC ALOOTIKKI,MC VEGGIE, PIZZA MCPUFFETC.THEY USE SPICES FAVOURED BY

INDIANS SOFT SERVES AND MCSHAKES ARE

EGGLESS

Actively Involver in many social activities likeCHILD EDUCATION, PULSE POLIO etc.

McDonalds History INDIA

7/30/2019 mc donalds scm

7/28

SUPPLY CHAIN

7/30/2019 mc donalds scm

8/28

Technological Development

Human Resource Management

Firm Infrastructure

Procurement

Outbou

nd

Logistics

Marketing

&Sales

Service

Operations

Inboun

d

Logistic

VALUE CHAIN ANALYSIS OF

MCDONALDS

8

7/30/2019 mc donalds scm

9/28

A cold chain is a temperature-controlled supply chain. Anunbroken cold chain is an uninterrupted series of storage

and distribution activities which maintain a given

temperature range. It is used help extend and ensure the

shelf life of products such as fresh agricultural produce,processed foods.

It was started by McDonalds in India.

It took 6 years. Benefited to both consumers as well as farmers.

Helped to maintain freshness and nutritional value of raw

materials.

CONCEPT OF COLD CHAIN

7/30/2019 mc donalds scm

10/28

Steps involved in cold chain:

Procurement

Warehousing

Transportation

Retailing

All the above activities took place in temperature

controlled atmosphere

7/30/2019 mc donalds scm

11/28

Mc Donalds India sources its ingredients from local suppliers ware an integral part of the cold chain. Refrigerated trucks with mu

temperature facility divided into 3 zones- freezer, chiller, and ambi

to ferry product demanding varying temperatures from supplier

location to the distribution centre

.

Reference: National Retail Federation-Case Study

7/30/2019 mc donalds scm

12/28

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

7/30/2019 mc donalds scm

13/28

Consumer/outlets

38 suppliers

across

the country

Procurement

logisticFood /nonfood:

Frozen , chilled &

any dry goods

Warehousing & packaging

Distribution logistics

Food /nonfood:

Frozen , chilled &

any dry goods

C Donalds Supply Chain(160 restaurants across

the country)

7/30/2019 mc donalds scm

14/28

Supply of ingredients:

Sesame seeds

Ghaziabad, UP

Buns

Shah & sons,Khopoli ,MH &

Cremica Industries,

Noida

Iceberg lettuce

Trikaya Agriculture , Talegaon MH

Meena Agritech ,Delhi

Ferrocoa 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 MHReference: mcdonaldsindia.com

7/30/2019 mc donalds scm

15/28

Supply Chain

Trikaya Agriculture - Supplier of IcebergLettuce.

successfully grows speciality crops like

iceberg lettuce, special herbs and

many oriental vegetables. Farm

infrastructure features:

A specialized nursery with a team of

agricultural experts.

Drip and sprinkler irrigation in raised

farmbeds with fertilizer mixing plant.

Pre-cooling room and a large cold

room for post harvest handling.

7/30/2019 mc donalds scm

16/28

Vista Processed Foods Pvt.Ltd. - Supplier of Chicken and

Vegetable range of products.A joint venture with OSI Industries Inc.,USA, and McDonald's India Pvt. Ltd. Vista

Processed Foods Pvt. Ltd. produces a rangeof frozen chicken and vegetable foods. A

world class infrastructure at its plant atTaloja, Maharashtra, has:

Separate processing lines for chicken

and vegetable foods. Capability to produce frozen foods at

temperature as low as -35 Degree

Celsius to retain total freshness.

International standards, procedures

and support services.

Supply Chain

7/30/2019 mc donalds scm

17/28

Supply ChainDynamix Diary - Supplier of

CheeseDynamix has brought immense benefits to farmers

in Baramati, Maharashtra by setting up a network

of milk collection centres equipped with bulk

coolers. Easy accessibility has enabled farmers

augment their income by finding a new market forsurplus milk. The factory has:

Fully automatic international standardprocessing facility. Capability to convert milk into cheese,

butter/ghee, skimmed milk powder,lactose, casein & whey protein andhumanised baby food. Stringent quality control measures andcontinuous Research & Development.

7/30/2019 mc donalds scm

18/28

Supply Chain

Radhakrishna Foodland - Distribution

Centre.

An integral part of the Radhakrishna

Group, Foodland specialises in handling

large volumes, providing the entire range of

services including procurement, qualityinspection, storage, inventory management,

deliveries, data collection, recording and

reporting. Salient strengths are:

A one-stop shop for all distribution

management services. Dry and cold storage facility to store and

transport perishable products at

temperatures up to - 22 Degrees Celsius.

Effective process control for minimum

distribution cost.

7/30/2019 mc donalds scm

19/28

AMRIT FOODS

An ISO 9000 company

Manufactures widely popular brands Gagan Milk and Nandan

Ghee at its factory at Ghaziabad, Uttar Pradesh.

Supply Chain

7/30/2019 mc donalds scm

20/28

Facilities- they are the actual physical location in the supplychain network where the product is stored, assembled, or

fabricated. The two main facilities are production sites and the

storage sites. In McDonalds, because the products are perishable,

storage time was minimal so as to reduce the wastage. Transportation- it is the process where the inventory is moving

from place to place. Refrigerated vans are used here in this case.

Inventory- it includes raw materials, work in progress, and

finished goods within a supply chain

3 LOGISTICAL DRIVERS

7/30/2019 mc donalds scm

21/28

PUSH AND PULL PROCESS:

Various suppliers supplies the materials

Products delivered to distribution centers

Products delivered to restaurant

Push stops here pull

starts here

Customer order at restaurant

7/30/2019 mc donalds scm

22/28

FOOD ITEMS OFFERED BY

MC DONALDS

7/30/2019 mc donalds scm

23/28

7/30/2019 mc donalds scm

24/28

7/30/2019 mc donalds scm

25/28

7/30/2019 mc donalds scm

26/28

7/30/2019 mc donalds scm

27/28

7/30/2019 mc donalds scm

28/28

THANK YOU