McDonalds Supply Chain in India

1. Topic: McDonald’s Restaurant Supply
Chain Management
1
WELCOME TO
OUR PRESENTATION

2. 2
Group Members
Alive Jenny 45
Sharath 34
Shekhar 35
Sirajuddin 37
Sachith 03

3.  What is a Cold Chain?
 Explain how McDonalds managed the Components of the
Cold Chain?
 Critically Comment on the role played by the unique
Centralized Distribution System in McDonalds Supply
Chain?
 ‘McDonalds is one of the few Companies that has placed
substantial emphasis on effective and efficient Supply
Chain Management System as a means to leverage for
competitive advantage.’ In the light of this statement
analyse the steps taken by McDonalds to standardize its
Supply Chain in India 3

4. 4

5.  Richard and Maurice McDonald originally started as a small
hamburger stand in Bernardino, California, in 1945.
 Re-opened in December 1948 as a self-service drive-in
restaurant.
 In 1950s Ray Kroc, a Multimixer Salesman, signed a
franchise agreement with Richard and Maurice McDonald
the name of McDonald Corporation at Illinois in 1955.
 In 1961, Ray purchased the ownership from McDonald
brothers.
 Today 34,000 McDonald's restaurants serving 69 million
customers each day in over 119 countries.
5

6. 6
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

7. McDonalds in India
 Entered India in 1996 through a joint venture with
Amit Jatia (Hardcastle Restaurants Pvt. Ltd.) and
Vikram Bakshi (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
 Radhakrishana group, a group engaged in food
business in the year 1993 was their 1st distribution
centre
7

8. 8

9. 9

10. 10

11. 11

12. 12

13. 13

14. Supply Chain
A supply chain is a system of
organizations, people, technology,
activities, information and resources
involved in moving product or service
from supplier to customer. Supply
chain activities transform natural
resources, raw materials and
components into a finished product
that is delivered to the end customer
14

15. McDonalds Europe Sustainable Supply
https://www.youtube.com/watch?v=OPrvgReNr
WI
15

16. 16

17.  Source all its requirements from within India
 Developed local business that supplied high quality
products
 Works with 38 different local suppliers
 Trained local farmers to produce according to their
specification
 Worked with vendor to get the perfect cold chain in
place
 Distribution centres – Noida, Kalamboli, Bangalore,
Kolkata
 Cold chain was introduced by McD in India17

18. 18

19. 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 is used help
extend and ensure the shelf life of products
such as fresh agricultural produce,
processed foods
19

20. 20

21.  McDonalds’ entire network supply-chain consists of
movement of goods through a cold chain
 An interesting and innovative feature of this cold chain
is that the same truck can carry products at different
temperatures
 Frozen products at -18C to -25C
 Chilled products from 1C-4C
 Dry products at ambient temperatures
21

22. 22
Procurement Warehousing Transportation Retailing
All the above activities takes place in temperature
controlled atmosphere

23. 23
Improved
Customer
Experience
Minimum
Distribution
Costs
Less waste of
food
Maintenance
of quality of
the produce
Fewer
Deliveries
Required
Lower
Operation
Costs
Items
continually
in Stock

24. 24

25.  McDonalds procures its products from local suppliers in
India which follow stringent quality standards such as
HACCP Principles.
 McDonalds brought the concept of cold chain in India
 McDonalds created a Central Distribution System for
better Supply Chain Management.
 McDonalds set up two separate production lines for
vegetable chicken and vegetable patties.
25

26. 26