McDonald’s One World One Burger

Anuj JaiswalDipesh kokateArjun patil

Strategically designing the concepts and innovating the ideas such as drive in restaurant, QSCV values.

Partnerships and collaboration Centralized warehousing Forecasting demand Setting up supply chain standards and quality parameters Inventory management Logistics management Backward integration Outsourcing Trust on suppliers Push pull boundary Cold chain Supply chain network

Mc Donalds and management principles

It started as a drive-in-restaurant in the year 1937.

In 1966, McDonald’s was listed on the New York Stock Exchange.

In June 1967, McDonald’s opened its first restaurant outside U.S in Canada.

McDonald’s now has a network of over 160 restaurants across the country.

Facts to look at

-World Market Leader in the QSR area (Quick Service Restaurant)

-Franchise System (75%)

- System employees: 1.6 million

-Customers Per Day: 58 million

Mc Donald's Overview

India’s Transportation and Storage Infrastructure Poor Agricultural Products Lower Quality

Mc Donald's enter India in the year 1996 with the Entry Strategy “ Think Global, Act Local”

Indian McDonald

Don’t offer any beef or pork item in India in product like mc veggie, pizza mcpuff etc.

Two separate production lines for chicken and vegetable patties.

They use spices favoured by Indians soft serves and mc shakes are eggless

Indian challenge and strategy implied

The importance of supply chain can be understood by the fact that before setting up their first restaurant in India, Mc Donald's infused around Rs. 400 crores in the supply and delivery chain.

Pre Launch Planning (6 years)

Product development Agriculture processes improvement Improve quality & greater yields Quality control improvements Cold Storage Facilities improvement Logistics improvement Traceability Minimized costs and optimized quality

McDonalds Model

Cold chain model Company franchisee and supplier model

Pre launch and Indian SCM model

McDonald's had a very well orchestrated supply chain, called the

Cold Chain

A cold chain is a temperature controlled supply chain.

An unbroken cold chain is an uninterrupted series of storage and distribution activities which maintain a given temperature range.

It benefits both farmers as well as the consumers, as they are getting the fresh, best quality and great value food.

With this concept mc Donald's cut down its wastage and able to

maintain its freshness of raw material.

The story of the cold chain

Steps in cold chain

procurementwarehousingtransportationretailing

All the above activities takes place in temperature controlled atmosphere

The supplies of different were all delivered to Radhakrishna Foodland Private Limited(RFPL) distribution centre (cold storage) in its refrigerated vans. RFPL stored the products in controlled conditions in Mumbai and New Delhi and supplied them to McDonald's outlets.

Vital links in the cold chain

ITEM PLACE

Cheese  Dynamix Dairy Industries Ltd., Pune

Dehydrated onions  Jain Foods, Jalgaon

Iceberg lettuce  Trikaya Agriculture, Pune

Chicken patty  Vista Foods, Taloja

Veg. Patty, Veg. Nuggets, Pie’s  Kitran Foods, Taloja

Chicken (dressed)  Riverdale, Talegaon

Buns  Cremica Industries, Phillaur

Eggless mayonnaise  Quaker Cremica Pvt. Ltd., Phillaur

Sesame seeds  Ghaziabad

Fish fillet patties  Amalgam Foods Ltd., Kochi.

Vegetable for the patties  Finns Frozen Foods, Nasik and Jain Foods, Jalgaon

Mutton and Mutton Patties  Al Kabeer, Hyderabad

From Baramati, Maharashtra

Milk collection centres with bulk coolers

International standard and processing facilities

Stringent quality control measure

All activities from procurement of milk to changing it into cheese and then to serve that cheese in the restaurant is all under temperature control atmosphere

Dynamix dairy(supplying cheese)

Advanced agricultural practices helps them to grow speciality crops like lettuce and herbs.

Pre cooling room and large cold room for post harvest. Mc Donald's helped Trikaya agriculture develop a variety of ice

burg lettuce Refrigerated transportation

Vista foods processing ltd.

For chicken, temperature maintained is -35 degrees Celsius. Refrigerated transportation New chill rooms and temperature control rooms set up by Mc

Donalds.

Trikaya agriculture(supplying iceberg) and Vista processing Ltd

Amrit food-Supplies long life UHT milk / milk products for desserts Buns-shah Bector &Sons, Maharashtra And Cermica, Ludhiyana Batter & Breading- Cremica, Ludhiyana Vegetable Patty- Kitran Foods, Taloja, Maharashtra Cheddar Cheese- Dynamix Dairy, Baramati, Maharashtra Seasame Seed- Gaziabad, Up Spl Veg Eggless Sauce- Quaker, Cermica, Ludhiyana

Different Items Are Sourced From Different Geographies

Other outsourcing units

Specialized in handling large volumes.

Activities involved are quality inspection ,storage, inventory management, deliveries, reporting etc.

Responsible for cleanliness and personal hygiene of drivers

Packaging and temperature control of foods.

Data logs to track movement of each batch One stop shop for all distribution management services.

Both dry and cold storage facility available

Quality inspection program and HACCP

Centralized Distributioncentre(Radhakrishna food land limited)

Supply chain network strategy of Mc Donalds disribution storage with package carrier delivery

suppliersCentral

distribution system

restaurant

customers

Invetory manage

mentReplenish

ment cycle

Customer order cycle

Facilities

Best in class storage facilities available. The two main facilities are production sites and the storage site.

Transportation

It is the process where the inventory is moving from place to place. Refrigerated vans are used here in this case. Use of 3PL.

Inventory

It includes raw materials, work in progress, and finished good within a supply chain.

Restaurant can not stock more than 3 days and warehouses upto 14 days. 400 SKU in the warehouse

The Three Logistics drivers

Outsourcing Activity such as production, storage, transportation, and distribution) in a

supply chain. This activity was taken care by McDonalds .

Information It includes data and analysis related to facilities, inventory, transportation,

cost, prices and customers in the whole supply chain. This activity was done by Radhakrishana food land that acts as

their distribution centre.

Pricing Charge for a particular goods and services that it makes available in the

supply chain. It was done by the McDonalds only

The supply Chain Drivers

Pull to customer specific order

Push pull strategy used by Mc. Donalds.

Push – Based Strategy

Pull – Based Strategy

Suppliers

End Customers

Push – Pull Boundary

Products will be pushed to the restaurants

Flexible form of products from central distributing system

customers automatically demand that product and hence a pull is created

Mc Donald's use push pull strategy

SWOT AnalysisStrength

Strong brand name, image & reputation.

Large market share. Strong global presence. Introduction of new products Strong financial performance &

position.

Weakness

High staff Turnover Customer losses due to fierce

competition. Legal actions related to health

issues; use of trans fat & beef oil.

Opportunities Threats

Diversification and acquisition of other quick-service restaurants

Growth of the fast-food industry Low cost menu that will attract

the customers. Freebies and discounts Joint venture with retail

supermarket

Ill health and obesity issues. McDonald’s competitors Awareness about nutritional and

healthy food

Thank you