Mc Donald’s Food Supply Chain

Group-1 Members:A V N Rao (Roll No 1)

Ashish Kumar Mishra (Roll No 9)Saurav Bhasin (Roll No 26)

IntroductionMcDonald’s Global:•Started in 1955 by Ray Kroc in Illinois, USA.•MacDonald has more than 30,000 restaurants in more than 120 countries.•It collectively serves close to 50 million customers each day.•70% of their restaurants worldwide are owned and operated by independent local businessmen.

McDonald’s India:•Opened first restaurant in India in 1996.•Operates in India through two Joint ventures:1.Connaught Plaza Restaurant Pvt. Ltd- in northern and eastern region.2.Hard Castle Restaurant Pvt. Ltd- in southern and western region.

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McDonald’s India Channel Network

McDonald’s Philosophy

McDonald’s is about• efficiency without sacrificing quality• Speed without sacrificing quality and • consistency

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McDonald’s Philosophy

McDonalds thrives on some core fundamentals

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• A production process approach – different work cells combining to make the finished product

• Standardization – a Big Mac is a Big Mac – go into any restaurant across ,will get the same quality & Service

• Just in Time production – make what’s needed – small numbers of ready finished product

• Flexible and multi skilled workforce

• Lean production – the backroom kitchen of a McDonalds is not massive

What is Supply Chain ?

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Set of approaches to efficiently integrate suppliers, manufacturers, warehouses and stores so that merchandise is produced and distributed at the “ Right quantities , to the right locations , and at the right time

Supply Chain Flows

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Understanding Supply Chain

…a chain is only as good as its weakest

link

Supplier Customer

Receiving Manufacture Packing Distribution

Purchasing SchedulingMaster Production Plan

Demand Management

Physical Flow

Information Flow

Mc Donald’s Supply Chain

Mc Donald Franchisee

Dist. Center

Trikaya Agriculture

Vista Processing

Foods

Mccain Foods

Dynamix Dairy

Upstream

Tier-1

Tier-2

Radha krishna Food Land

Single Vs Multiple suppliersMcDonald’s mostly follows single vendor concept• Idea is to develop suppliers who grow big enough to

generate economies of scale & hence lower prices

• Fewer nos. of supplier ensures consistency in the taste & feel of food across India

• More than one supplier becomes necessity in few products like lettuce, due to the seasonal nature of their production in some seasons in some areas

Supplier Management• At McDonald’s suppliers are treated as “partners”.• Company works together with the suppliers in up

gradation of all around processes at their end:• Sharing of advanced farming techniques• Providing best quality seeds• Supplier visits to other countries to learn best

practices• Regular tracking of the suppliers’ processes

• All these supports/assistance combined with guaranteed volumes, helps McDonald’s to force their suppliers to upgrade their systems to minimize waste, reduce costs and speed up production

McDonald’s Distribution Centers

Responsibilities : • Cold Chain Logistics• Sourcing• Quality inspection programs• Inventory management• Supply to the restaurants and • Data collection, accounting and reporting.

Locations: Noida, Mumbai, Bangalore, Kolkata Distributor: Radha Krishna Food Land

Each Truck has 3 levels of variable refrigeration, Size of each compartment can be varied

“With a cold chain in place there is practically no need for a knife in the restaurant. Chopping and food processing is done in plants. Restaurants are confined only to actual cooking” – Amit Jatia

Logistics

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Tasks for suppliers

Supplier Selection Major Suppliers

Trikaya Agriculture

Advanced agricultural techniques Specialist nursery Expert Drip irrigation Elevated beds Compost farm mixingLarge cold room for treatment after harvest Refrigerated truck for transport.

Location: Talegaon (Pune)

Specialty crops as iceberg lettuce, herbs and Oriental vegetables.

Mc Donald assists in Selection of high quality seeds, Advanced technology, drip irrigation

Vista Processing

Foods

World-class infrastructure Produce and frozen foods at temp as -35 degrees Celcius hi-tech equipment for poultry and vegetable processing line (de-boning, blending, forming, coating, frying and deep freezer)Location: Taloja

(Mumbai)

chicken and vegetable supplier range of products including fruit pies

Supplier Selection

Mccain Foods

Dynamix Dairy

Major Suppliers Help Indian Farmers to meet Mc

Donald Quality Specification w.r.t Length, High Solid Content and Low Moisture ( Spec: 26% Solid matter)Hotter Agronomy TechniquesSowing seed treatments Planting MethodsFertilizer application & Storage

Potato for French Fries

Good network of milk collection centres Fully automated international standard of treatmentEach batch is mixed and cooled to 2 degrees Celsius to immediately stop the growth of bacteria & then temp is never allowed to grow till it is applied in the Burger

Cheese & Dairy Products

Location: Deesa & Kheda ( Gujarat)

Location: Baramati ( Maharashtra)

Location Selection Major SuppliersSupplier Location Location PreferenceIceberg Lettuce

Ooty , Dehradun ,Pune ,Delhi

Cold claimate & Max Yield Drip irrigation facility Near Distribution Center

Chicken & Frozen Peas, Vegetables

Taloja (Mumbai) & Delhi ,Pune

Near Distribution Center Cold storage facility Expertise in Poultry

Cheese & Dairy Products

Baramati (Maharashtra)

Availability of cattle Coolers at Collection Centers

Potato for French Fries

Gujarat Climate Conditions for Low Moisture , High Solid Matter

Buns Maharashtra & Punjab

Near Distribution Centers

Distribution Centers

Delhi, Mumbai,Kolkatta,Bangalore

To cater all regions & Near major Metros

Thank You ..

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