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.
3
McDonald’s India Channel Network
McDonald’s Philosophy
McDonald’s is about• efficiency without sacrificing quality• Speed without sacrificing quality and • consistency
4
McDonald’s Philosophy
McDonalds thrives on some core fundamentals
5
• 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 ?
6
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
8
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
13
14
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 ..
18