McDonald’s
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Transcript of McDonald’s
McDonald’s One World One Burger
Anuj JaiswalDipesh kokateArjun patil
Strategically designing the concepts and innovating the ideas such as drive in restaurant, QSCV values.
Partnerships and collaboration Centralized warehousing Forecasting demand Setting up supply chain standards and quality parameters Inventory management Logistics management Backward integration Outsourcing Trust on suppliers Push pull boundary Cold chain Supply chain network
Mc Donalds and management principles
It started as a drive-in-restaurant in the year 1937.
In 1966, McDonald’s was listed on the New York Stock Exchange.
In June 1967, McDonald’s opened its first restaurant outside U.S in Canada.
McDonald’s now has a network of over 160 restaurants across the country.
Facts to look at
-World Market Leader in the QSR area (Quick Service Restaurant)
-Franchise System (75%)
- System employees: 1.6 million
-Customers Per Day: 58 million
Mc Donald's Overview
India’s Transportation and Storage Infrastructure Poor Agricultural Products Lower Quality
Mc Donald's enter India in the year 1996 with the Entry Strategy “ Think Global, Act Local”
Indian McDonald
Don’t offer any beef or pork item in India in product like mc veggie, pizza mcpuff etc.
Two separate production lines for chicken and vegetable patties.
They use spices favoured by Indians soft serves and mc shakes are eggless
Indian challenge and strategy implied
The importance of supply chain can be understood by the fact that before setting up their first restaurant in India, Mc Donald's infused around Rs. 400 crores in the supply and delivery chain.
Pre Launch Planning (6 years)
Product development Agriculture processes improvement Improve quality & greater yields Quality control improvements Cold Storage Facilities improvement Logistics improvement Traceability Minimized costs and optimized quality
McDonalds Model
Cold chain model Company franchisee and supplier model
Pre launch and Indian SCM model
McDonald's had a very well orchestrated supply chain, called the
Cold Chain
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 benefits both farmers as well as the consumers, as they are getting the fresh, best quality and great value food.
With this concept mc Donald's cut down its wastage and able to
maintain its freshness of raw material.
The story of the cold chain
Steps in cold chain
procurementwarehousingtransportationretailing
All the above activities takes place in temperature controlled atmosphere
The supplies of different were all delivered to Radhakrishna Foodland Private Limited(RFPL) distribution centre (cold storage) in its refrigerated vans. RFPL stored the products in controlled conditions in Mumbai and New Delhi and supplied them to McDonald's outlets.
Vital links in the cold chain
ITEM PLACE
Cheese Dynamix Dairy Industries Ltd., Pune
Dehydrated onions Jain Foods, Jalgaon
Iceberg lettuce Trikaya Agriculture, Pune
Chicken patty Vista Foods, Taloja
Veg. Patty, Veg. Nuggets, Pie’s Kitran Foods, Taloja
Chicken (dressed) Riverdale, Talegaon
Buns Cremica Industries, Phillaur
Eggless mayonnaise Quaker Cremica Pvt. Ltd., Phillaur
Sesame seeds Ghaziabad
Fish fillet patties Amalgam Foods Ltd., Kochi.
Vegetable for the patties Finns Frozen Foods, Nasik and Jain Foods, Jalgaon
Mutton and Mutton Patties Al Kabeer, Hyderabad
From Baramati, Maharashtra
Milk collection centres with bulk coolers
International standard and processing facilities
Stringent quality control measure
All activities from procurement of milk to changing it into cheese and then to serve that cheese in the restaurant is all under temperature control atmosphere
Dynamix dairy(supplying cheese)
Advanced agricultural practices helps them to grow speciality crops like lettuce and herbs.
Pre cooling room and large cold room for post harvest. Mc Donald's helped Trikaya agriculture develop a variety of ice
burg lettuce Refrigerated transportation
Vista foods processing ltd.
For chicken, temperature maintained is -35 degrees Celsius. Refrigerated transportation New chill rooms and temperature control rooms set up by Mc
Donalds.
Trikaya agriculture(supplying iceberg) and Vista processing Ltd
Amrit food-Supplies long life UHT milk / milk products for desserts Buns-shah Bector &Sons, Maharashtra And Cermica, Ludhiyana Batter & Breading- Cremica, Ludhiyana Vegetable Patty- Kitran Foods, Taloja, Maharashtra Cheddar Cheese- Dynamix Dairy, Baramati, Maharashtra Seasame Seed- Gaziabad, Up Spl Veg Eggless Sauce- Quaker, Cermica, Ludhiyana
Different Items Are Sourced From Different Geographies
Other outsourcing units
Specialized in handling large volumes.
Activities involved are quality inspection ,storage, inventory management, deliveries, reporting etc.
Responsible for cleanliness and personal hygiene of drivers
Packaging and temperature control of foods.
Data logs to track movement of each batch One stop shop for all distribution management services.
Both dry and cold storage facility available
Quality inspection program and HACCP
Centralized Distributioncentre(Radhakrishna food land limited)
Supply chain network strategy of Mc Donalds disribution storage with package carrier delivery
suppliersCentral
distribution system
restaurant
customers
Invetory manage
mentReplenish
ment cycle
Customer order cycle
Facilities
Best in class storage facilities available. The two main facilities are production sites and the storage site.
Transportation
It is the process where the inventory is moving from place to place. Refrigerated vans are used here in this case. Use of 3PL.
Inventory
It includes raw materials, work in progress, and finished good within a supply chain.
Restaurant can not stock more than 3 days and warehouses upto 14 days. 400 SKU in the warehouse
The Three Logistics drivers
Outsourcing Activity such as production, storage, transportation, and distribution) in a
supply chain. This activity was taken care by McDonalds .
Information It includes data and analysis related to facilities, inventory, transportation,
cost, prices and customers in the whole supply chain. This activity was done by Radhakrishana food land that acts as
their distribution centre.
Pricing Charge for a particular goods and services that it makes available in the
supply chain. It was done by the McDonalds only
The supply Chain Drivers
Pull to customer specific order
Push pull strategy used by Mc. Donalds.
Push – Based Strategy
Pull – Based Strategy
Suppliers
End Customers
Push – Pull Boundary
Products will be pushed to the restaurants
Flexible form of products from central distributing system
customers automatically demand that product and hence a pull is created
Mc Donald's use push pull strategy
SWOT AnalysisStrength
Strong brand name, image & reputation.
Large market share. Strong global presence. Introduction of new products Strong financial performance &
position.
Weakness
High staff Turnover Customer losses due to fierce
competition. Legal actions related to health
issues; use of trans fat & beef oil.
Opportunities Threats
Diversification and acquisition of other quick-service restaurants
Growth of the fast-food industry Low cost menu that will attract
the customers. Freebies and discounts Joint venture with retail
supermarket
Ill health and obesity issues. McDonald’s competitors Awareness about nutritional and
healthy food
Thank you