mc donalds supply chain

1. •AKHILA
•ANOOP C.R
•ANTONY JOSEPH.T

2. Controlled Temperatures
Procurement Warehousing Transportation Retailing
UNIQUE SUPPLY CHAIN AT MC DONALD’S

3. SUPPLIERS OF MC DONALDS INDIA

4. COLD CHAIN PARTNERS

5.  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.

6.  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.

7.  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.

8.  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.

9.  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.

10.  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 on
the 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

11.  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

12. Consumer/outlets
38 suppliers
across
the country
Procurement
Food/nonfood:
Frozen ,
chilled &
any dry goods
Warehousing & packaging
Distribution logistics
C Donald’s Supply Chain
(160 restaurants
across
the country)

13. Limited Menu
Fresh Food
Fast Service
Affordable Price

14. 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)

15.  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

17.  TRANSACTION PROCESSING SYSTEM
(TPS)
 “POINT OF SALE”
SYSTEM
 DECISION SUPPORT
SYSTEM (DSS)
 “MADE FOR YOU”
SYSTEM

18. 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

19. Various suppliers supplies the materials
Products delivered to distribution centers
Products delivered to restaurant
Customer order at
restaurant
Push stops
here pull
starts here