Mc DONALD’SSUPPLY CHAIN

SHUBHAM ARORABMS(H)

INTRODUCTION

• Leading global food service retailer• 35,000 local restaurants, 68 million people, more than 119

countries• Hamburgers, Chicken sandwich, French fries, soft drinks,

breakfast items and desserts• Local deviation from the standard menu

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

McDonald’s In INDIA• Entered India in 1996 through a joint venture with Hardcastle Restaurants Pvt.

Ltd.(Amit Jatia) and Connaught Plaza Restaurants Pvt. Ltd.(Vikram Bakshi)

• 250 restaurants in India

• 130 in West and South(Hardcastle) 120 in North and East(Connaught)

• Plans to double the number of outlets it has in the country to 500 over the next three years at an investment of Rs 1,000 crore.

• The entire menu was changed. Special menu with vegetarian selection & no beef. 

• Plans to double its headcount in the next three to four years by adding 2,500 people each year.

 • The company has tie-ups with Bharat Petroleum, Hindustan

Petroleum and Indian Oil to set up drive-through at their petrol pumps.

• Trained extensively with their Indian management team in Indonesia and USA before launch.

• 90% of Mc Donald’s business is owned and run by independent franchisees in India.

Key business drivers & potential:PricingBrand Trust

Extended Hours

Operation Excellence

Food Innovation

McDonald’s– FOUR PILLARS OF SUCCESS

Limited Menu

Fresh Food

Fast Service

Affordable Price

Supply chain of Mc Donald’s • In a fast food business, supply chain is of highest importance.

• It helps in minimizing cost, cut down the delivery time, improve the profits and at the same time maintain the highest standards.

• Before setting up their first restaurant in India, McDonalds infused around Rs. 400 crores in the supply and delivery chain.

• McDonalds developed local businesses that supply them the products and that too of highest standards.

• 1st distribution agreement was done by Radhakrishna group, a group engaged in food business in the year 1993 and it was their 1st distribution center.

SUPPLIERS OF Mc DONALDS INDIA

COLD CHAIN PARTNERS

Dynamix Dairy Industries

• Produces over 2,000 pounds of cheese per month.• Helped set up 15 bulk cooling centers throughout the

district from which it purchases milk.• Checks fat content. Detects traces of pesticides or

antibiotics administered to cows.

Trikaya Agriculture

• McDonald's has provided assistance in the selection of high quality seeds.

• Exposed the farms to advanced drip-irrigation technology.• Helped develop a refrigerated transportation system

allowing a small business in India to provide fresh, high-quality lettuce to McDonald's urban restaurant locations thousands of miles away.

Vista Jiffy

• Hi-tech refrigeration plants for manufacturing frozen food at temperatures as low as - 35° C. 

• The latest vegetable mixers and blenders are in operation. • Keeping cultural sensitivities in mind, both processing lines

are absolutely segregated to ensure that the vegetable products do not mix with the non-vegetarian products. 

Amrit

• Monitors food as the ingredients move from farms to processing plants to the restaurant

• Implements McDonald's Quality Inspection Program (QIP), which carries out quality checks at over twenty different points in the Cold Chain system.

Foodland• Specializes in handling large volumes of products • Offers wide range of services: quality inspection, storage,

inventory management, deliveries, data collection, recording and reporting.

• Effective process control for minimum distribution cost.• A one-stop shop for all distribution management services.• Dry and cold storage facility to store and transport perishable

products.

Push and Pull ProcessVarious suppliers supplies the materials

Products delivered to distribution centers

Products delivered to restaurant

Customer order at restaurant

Push stops here pull starts

here

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SUPPLY CHAIN INTEGRATION

RESULT OF SUPPLY CHAIN INTEGRATION Significant business benefits to both the customer and the supply chain Enablers

One stop shopping concept - Central file management Inventory management - Restaurant simplification Demand forecasting

Supplier and DC level Supply Planning

Restaurant and DC level