MC DONALD'SSUPPLY CHAINSTRATEGIES

•AKHILA•ANOOP C.R•ANTONY JOSEPH.T

Controlled Temperatures

Procurement Warehousing TransportationRetailing

UNIQUE SUPPLY CHAIN AT MC DONALD’S

SUPPLIERS OF MC DONALDS INDIA

COLD CHAIN PARTNERS

DYNAMICS DAIRY INDUSTRIES LTD

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 minute traces of pesticides or antibiotics administered to cows.

This instant rejection forces farmers to follow the best practices in terms of raising livestock, using proper feeds, and cutting down on the use of pesticides and animal medicines.

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. 

VISTA JIFFY Technical and financial support extended

by OSI Industries Inc., USA and McDonald’s India Private Limited :

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. 

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.

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.

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.

Today McDonalds have around 38 suppliers and that too onthe long term basis.

1st distribution agreement was done by Radhakrishana group, a group engaged in food business in the year 1993 and it was their 1st distribution center

LOGISTICAL DRIVERS Facilities- they are the actual physical

location in the supply chain network where the product is stored, assembled, or fabricated. The two main facilities are production sites and the storage sites. In McDonalds, because the products are perishable, storage time was minimal so as to reduce the wastage.

Transportation- it is the process where the inventory is moving from place to place. Refrigerated vans are used here in this case.

Inventory- it includes raw materials, work in progress, and finished goods within a supply chain

Consumer/outlets

38 suppliersacross the country

Procurement

Food/nonfood:Frozen , chilled & any dry goods

Warehousing & packaging

Distribution logistics

C Donald’s Supply Chain(160 restaurants across the country)

MCDONALD’S– FOUR PILLARS OF SUCCESS

Limited Menu Fresh Food Fast Service Affordable Price

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)

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

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

MC DONALDS INFORMATION SYSTEMS

TRANSACTION PROCESSING SYSTEM (TPS)

“POINT OF SALE” SYSTEM

DECISION SUPPORT SYSTEM (DSS)

“MADE FOR YOU” SYSTEM

IMPLEMENTATION OF JIT sophisticated burger-making technology (including a record-breaking bun toaster)

McDonald's is able to make food fast enough to wait until it's been ordered.

Reduction in wastage

PUSH AND PULL PROCESSVarious suppliers supplies the materials

Products delivered to distribution centers

Products delivered to restaurant

Customer order at restaurant

Push stops here pull

starts here