mcdonald’s_supply_chain_in_india

7/30/2019 Mcdonalds_Supply_Chain_in_India

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Mc DONALDS

SUPPLY CHAIN

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AGENDA Introduction History of Mc Donalds Mc Donalds in India Mc Donalds Supply chain

Supply Chain Challenges Supply Chain Strategy Cold Chain Validation of cold chain

Cold chain partners Logistics Result of Supply chain Integration

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INTRODUCTION

Leading global food service retailer

32, 000 local restaurants, 60 million people,more than 100 countries

Hamburgers, Chicken sandwich, French fries,soft drinks, breakfast items and desserts

Local deviation from the standard menu Abide by regional taboos

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HISTORY

1940 Began as a restaurant opened by siblingsDick and Mac McDonald in California

1948 Introduction of Speedy Service System

1955 - Opening of a franchised restaurant by RayKroc

Post 1955 Kroc purchased Mc brothers equityin the company and led to world wide expansion

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McDonalds IN INDIA

Entered India in 1996 through a joint venturewith Hardcastle Restaurants Pvt. Ltd. and

Connaught Plaza Restaurants Pvt. Ltd. 160 restaurants in India

Special menu with vegetarian selection, no beef

Products using Indian spices - McVeggieburger,

McAloo Tikki burger Indian local suppliers provide McD with highest

quality freshest ingredients

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McDonalds FOUR PILLARS OF SUCCESS

Limited Menu

Fresh Food

Fast Service

Affordable Price

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Mc Donalds SUPPLY CHAIN IN INDIA

Source all its requirements from within India Developed local business Works with 38 different local suppliers

Trained local farmers to produce according to theirspecification Worked with vendor to get the perfect cold chain in

place

Distribution centers Noida, Kalamboli, Bangalore,Kolkata Cold chain Unique concept of McD supply chain in

India

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Full Supply Chain responsibility

Multi Temp. Products - Over 65 % temperature

controlled Stores as far as 500 1000 kms

Drops per month - Over 1000 - Movement mainly byroad

Regular movement of perishables by air No margin for error Operations critical client

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Mc Donalds SUPPLY CHAIN

CHALLENGES


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Mc Donalds SUPPLY CHAIN CHALLENGES

(cont.)

No Stock Outs at store

On time delivery record above 97 %

Clean delivery record above 99 % Unfailing inbound supply chain

Bull whip effect

Cannibalization

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SUPPLY CHAIN STRATEGY

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SUPPLY CHAIN SERVICES FOR McDONALDS

RESTAURANTS


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COLD CHAIN LIFELINE OF FAST FOOD BUSINESS

Temperature controlled supply chain

Series of storage and distribution activities

which maintain a given temperature range Extend and ensure the shelf life of food products

Locked in pre-cooling room to

remove field heatafter harvesting

Transportationto distribution

centers inrefrigerated vans

McDonaldsstore products tobe used on daily

basis

2 o c 1 to 4 o c -18 to 4 o c

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VALIDATION OF COLD CHAIN

ComponentQualification

Qualificationcheck on

packagingcomponents

OperationalQualification

To demonstratethat the process

performs at theoperational

extremes

PerformanceQualification

To demonstratethat what

happens in thereal world is

within the limitsof what was

demonstrated inthe Operational

Qualificationlimits

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COLD CHAIN PARTNERS

BEHIND THE Big Mac

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Source: http://www.rediff.com/business/1999/apr/29mac5.jpg


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COLD CHAIN PARTNERS

1. Dynamic Dairy Industries - Supplier of Cheese

Baramati, Maharashtra

Immense benefit to farmers by setting up a network of milk

collection centres equipped with bulk coolers From farm two degrees Celsius in 90 minutes

Fully automatic international standard processing facility

Capability to convert milk into cheese, butter/ghee, skimmed

milk powder, lactose, casein & whey protein and humanizedbaby food

Stringent quality control measures and continuous Research& Development

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COLD CHAIN PARTNERS (Cont.)

2. Trikaya Agriculture-Supplier of Iceberg Lettuce

Talegaon, Maharashtra Grow lettuce all year round with the help of experts from Mc

Donalds A specialized nursery with a team of agricultural experts Vegetables are moved into the pre-cooling room within half

an hour of harvesting. The pre-cooling room ensures rapid vacuum cooling to 2 C

within 90 minutes. The pack house, post-cooling and cold room are located at thefarms itself, ensuring no delay between harvesting, pre-cooling, packaging and cold storage

Refrigerated truck for transportation.

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3. Vista Processed Foods Pvt. Ltd. -Supplier of Chicken andVegetable range of products including Fruit Pies

Taloja, Maharashtra. Produces a range of frozen chicken and vegetable foods

The technology includes hi-tech refrigeration plants formanufacture of frozen food at temperatures as low as - 35 c.

Cultural sensitivity: Vegetable & chicken manufactured atdifferent processing lines separated by a shower (washing)area. Utmost care to ensure no mixing up.

R&D facility for innovation in taste, nutritional value andconvenience

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4. Radhakrishna Foodland -Distribution centers for Delhiand Mumbai

Thane, Maharashtra

Handles large volumes

Services include procurement, quality inspection, storage,inventory management, deliveries, data collection, recording andreporting

Dry and cold storage facility to store and transport perishableproducts at temperatures upto -22 Degree Cel.

Effective process control for minimum distribution cost Variety of items coming from across India, stored in rooms with

different temperature zones and are finally dispatched to theMcDonald's restaurants on the basis of their requirements

Very vital role in maintaining the integrity of the products

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COLD CHAIN PARTNERS (Cont.)5. Amrit Food- Supplier of long life UHT Milk and Milk

Products for Frozen Desserts

Ghaziabad, Uttar Pradesh

ISO 9000 company Manufacture widely popular brands Gagan Milk and

Nandan Ghee State-of-the-art fully automatic machinery requiring no

human contact with product, for total hygiene. Installed capacity of 6000 ltrs/hr for producing homogenized

UHT (Ultra High Temperature) processed milk and milkproducts.

Strict quality control supported by a fully equipped qualitycontrol laboratory.

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LOGISTICS Handled by AFL Logistics Ltd. ~100 sales items in the restaurant ~400 SKUs in the warehouse (Hubs: up to 1,500)

~200 restaurants per DC (~180 DCs globally) Delivery frequency: ~3/wk, higher in urban areas 2-3 stops per route Exclusive distributors (3PL) Freight consolidation (via freight forwarders) Long term partnerships with service providers, risk

sharing Strong quality focus (Cold Chain, HACCP, QIP)

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SUPPLY CHAIN INTEGRATION

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Significant business benefits to both the customer and thesupply chain

Enablers

One stop shopping concept - Central file management

Inventory management - Restaurant simplification

Synchronizing the perishable Supply Chain

Demand forecasting

Promotional + Continuous Supply

Supplier and DC level

Supply Planning

Restaurant and DC level

Visibility and Collaboration across the chain

RESULT OF SUPPLY CHAIN INTEGRATION

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REFRENCES

http://www.icmrindia.org/free%20resources/casestudies/McDonald%20food%20chain-7.htm

http://www.articlesbase.com/marketing-

articles/mcdonalds-india-supply-chain-729402.html www.expresshospitality.com/20070315/management06

.shtml

www.mcdonaldsindia.com

www.nrf.com/Attachments.asp?id=9504

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