supply chain of mc donald

1. Mc DONALD’S
SUPPLY CHAIN
SHUBHAM ARORA
BMS(H)

2. 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

3. 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.

4. 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.

5. • 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.

6. Key business drivers &
potential:
PricingBrand Trust
Extended Hours
Operation
Excellence
Food Innovation

7. McDonald’s– FOUR
PILLARS OF SUCCESS
Limited Menu
Fresh Food
Fast Service
Affordable Price

8. 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.

9. SUPPLIERS OF Mc DONALDS
INDIA

10. COLD CHAIN
PARTNERS

11. 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.

12. 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.

13. 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.

14. 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.

15. 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.

16. Push and Pull Process
Various suppliers supplies the materials
Products delivered to distribution centers
Products delivered to restaurant
Customer order at
restaurant
Push stops
here pull starts
here

17. SUPPLY CHAIN INTEGRATION
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18. 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