Supply Chain of

C Donalds

WHAT IS SUPPLY CHAIN MANAGEMENT ???

A supply chain includes the chain of entities involved in planning, procurement, production and distribution of products and services. The process includes: Plan Source Make Deliver

SUPPLY CHAIN COMPONENTS

1. Inbound Supply Chain: The inbound supply chain pertains mainly to providing raw materials and components to an organization. It includes supplier development, supply management, joint cost reduction, target costing, value engineering, import substitution. 2. In house Supply Chain: It relates to the physical configuration of the conversion process. It includes demand management, master production scheduling, materials and capacity planning, distribution requirement planning, lay out and facilities management , materials and handling, coordination with supply chain partners. 3. Out bound supply chain:The outbound chain pertains to the distribution of goods and services to the end customers. It involves logistics management, ware housing, distribution and channel management.

McDonalds History INDIA

Entered in India 1996 McDonald's India is a 50 50 JV partnership between MCDONALDS CORPORATION (U.S.A) and two Indian businessman Amit Jatia and Vikram Bakshi Localisation:
DONT OFFER ANY BEEF OR PORK ITEM IN INDIA IN PRODUCT LIKE MC ALOO TIKKI,MC VEGGIE, PIZZA MCPUFF ETC.THEY USE SPICES FAVOURED BY INDIANS SOFT SERVES AND MCSHAKES ARE EGGLESS

Actively Involver in many social activities like CHILD EDUCATION, PULSE POLIO etc.

SUPPLY CHAIN

VALUE CHAIN ANALYSIS OF MCDONALDS

Firm Infrastructure Human Resource Management Technological Development

Procurement
Operations Outbound Logistics Inbound Logistic Marketing & Sales Service

CONCEPT OF 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 is used help extend and ensure the shelf life of products such as fresh agricultural produce, processed foods. It was started by McDonalds in India. It took 6 years. Benefited to both consumers as well as farmers. Helped to maintain freshness and nutritional value of raw materials.

Steps involved in cold chain:

Procurement Warehousing Transportation Retailing All the above activities took place in temperature controlled atmosphere

Mc Donalds India sources its ingredients from local suppliers wh are an integral part of the cold chain. Refrigerated trucks with mul temperature facility divided into 3 zones- freezer, chiller, and ambie to ferry product demanding varying temperatures from supplier location to the distribution centre

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Reference: National Retail Federation -Case Study

Distribution centre is also divided into multi-temperature zones , as are the trucks for storing products. With freezer at 0 degree F to 33 degree F , chiller at 33 degree F to 40 degree F, and room temperature.

Reference: National Retail Federation -Case Study

38 suppliers across the country

Food /nonfood: Frozen , chilled & any dry goods

Food /nonfood: Frozen , chilled & any dry goods

Procurement logistic

Warehousing & packaging

Distribution logistics

Consumer/outlets

C Donalds Supply Chain

(160 restaurants across the country)

Supply of ingredients:
Sesame seeds Ghaziabad, UP
Special vegetarian sauce (Eggless) Quaker Cremica, Phillaur,Punjab Batter & Breading Cremica Industries , Ludhiana ,Punjab

Buns Shah & sons, Khopoli ,MH & Cremica Industries, Noida Iceberg lettuce Trikaya Agriculture , Talegaon MH Meena Agritech ,Delhi Ferrocoa Farm, Dehradoon

Vegetable Patty (Made from fresh Peas, Carrots, Green beans, Potatoes and Rice) Kiltran foods, Taloja MH
Reference: mcdonaldsindia.com

Supply Chain
Trikaya Agriculture - Supplier of Iceberg Lettuce. successfully grows speciality crops like iceberg lettuce, special herbs and many oriental vegetables. Farm infrastructure features: A specialized nursery with a team of agricultural experts. Drip and sprinkler irrigation in raised farm beds with fertilizer mixing plant. Pre-cooling room and a large cold room for post harvest handling.

Supply Chain
Vista Processed Foods Pvt. Ltd. - Supplier of Chicken and Vegetable range of products.
A joint venture with OSI Industries Inc., USA, and McDonald's India Pvt. Ltd. Vista Processed Foods Pvt. Ltd. produces a range of frozen chicken and vegetable foods. A world class infrastructure at its plant at Taloja, Maharashtra, has: Separate

processing lines for chicken and vegetable foods. Capability to produce frozen foods at temperature as low as -35 Degree Celsius to retain total freshness. International standards, procedures and support services.

Supply Chain
Dynamix Diary - Supplier of Cheese
Dynamix has brought immense benefits to farmers in Baramati, Maharashtra by setting up a network of milk collection centres equipped with bulk coolers. Easy accessibility has enabled farmers augment their income by finding a new market for surplus milk. The factory has:

Fully automatic international standard processing facility. Capability to convert milk into cheese, butter/ghee, skimmed milk powder, lactose, casein & whey protein and humanised baby food. Stringent quality control measures and continuous Research & Development.

Supply Chain
Radhakrishna Foodland - Distribution Centre. An integral part of the Radhakrishna Group, Foodland specialises in handling large volumes, providing the entire range of services including procurement, quality inspection, storage, inventory management, deliveries, data collection, recording and reporting. Salient strengths are: A one-stop shop for all distribution management services. Dry and cold storage facility to store and transport perishable products at temperatures up to - 22 Degrees Celsius. Effective process control for minimum distribution cost.

Supply Chain
AMRIT FOODS An ISO 9000 company Manufactures widely popular brands Gagan Milk and Nandan Ghee at its factory at Ghaziabad, Uttar Pradesh.

3 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

PUSH AND PULL PROCESS:

Various suppliers supplies the materials

Products delivered to distribution centers

Products delivered to restaurant

Push stops here pull starts here

Customer order at restaurant

FOOD ITEMS OFFERED BY MC DONALDS

THANK YOU