Supply Chain Management
A Project On
This Supply Chain Management project on McDonalds is the outcome of sincere and positive contribution of various individuals. We can not justifiably translate there help, cooperation and guidance extended to us in completing this project work in words. However we shall be failing in our duty if we don’t express our thanks to a few people in particular. We would like to thank Mr. Akhilesh Mishra(floor manager) at McDonalds for his cooperation and it has been high privilege to work under the able supervision of our respected teacher, prof. Rita Chatterji
Table of Contents
Introduction to McDonalds. 1.1 History. 1.2 Corporate overview. 1.3 Why the Project? 1.4 Types of Restaurants. 2. Methodology used.
Business model. Advertising.
McDonalds in India. 6.5.
11. Suppliers and Distributors of McDonalds. Understanding Supply Chain Management. Inventory Management.
Is the leading global foodservice retailer with more than 30.000 local restaurants serving 52 million people in more than 100 countries each day. How Purchasing cycle works? 10. findings of study conducted. 12. More than 70% of McDonald's restaurants worldwide are owned and operated by independent local men and women
. 7. Understanding Supply Chain
Global operations and locations.
McDonald's opens in Pushkin Square and Gorky Street. The Quarter Pounder is introduced. Paris and Tokyo stock exchanges. 50 billionth hamburger sold. The first restaurants outside of the USA open in Canada and Puerto Rico. The first McDonald's at sea opens aboard the Silja Europa. Moscow. Cleanliness and Value (QSC& V) becomes the company motto. Set in 80 wooded acres. Hamburger University opens in Elk Grove. Illinois. The 1.History
1957 1959 1961 1963 1964 1965 1967 1968 1972 1973 1974 1983 Quality. McDonald's is listed on the Frankfurt. McDonald's Corporation goes public.
1984 1989 1990 1993
. near Chicago. Service. New Hamburger University campus opens in Oak Brook.000th restaurant opens in Des Plaines. The 100th McDonald's opens in Chicago. Munich. The Big Mac is introduced. the world's largest ferry sailing between Stockholm and Helsinki. Ronald McDonald Children's Charities is founded in Ray Kroc’s memory to raise funds in support of child welfare. Chicken McNuggets is introduced. Egg McMuffin is introduced. Training is provided for every level of McDonald's management worldwide. Ronald McDonald makes his debut. A new McDonald's restaurant opens every day. One billion hamburgers sold. The Happy Meal is launched. Filet-O-Fish sandwich is introduced. Illinois. The first Ronald McDonald House opens in Philadelphia.
Their introduction of the "Speedee Service System" in 1948 established the principles of the modern fast-food restaurant. bringing the total to over 15.
The business began in 1940. With the successful expansion of McDonald's into many international markets. California. Trinidad and United Arab Emirates. Latvia. Illinois on April 15. The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc. the company has become a symbol of globalization and the spread of the American way of life.1994 1996
Restaurants open in Bahrain.
Facts and figures
A McDonald's restaurant in Times Square. Bulgaria. 1955. Oman. Its prominence has also made it a frequent topic of public debates about obesity. Egypt. with a restaurant opened by siblings Dick and Mac McDonald in San Bernardino. Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion.000 in 79 countries on 6 continents. the ninth McDonald's restaurant overall. Kuwait. in Des Plaines. New Caledonia. McDonald's opens in India – the 95th country. corporate ethics and consumer responsibility.
The company also operates other restaurant brands. which started in 2003 as 18-foot (5. has focused on DVD rental machines. it also owned Donatos Pizza. and has a minority stake in Pret a Manger. The company owned a majority stake in Chipotle Mexican Grill until completing its divestment in October 2006. McDonald's sold Boston Market to Sun Capital Partners. such as Piles Café. On August 27.5 m) wide automated convenience stores. Redbox. 2007.
WHY THE PROJECT
• • • • To strengthen our knowledge To develop practical approach To understand real supply chain practices To know the cold chain system
• • Through Questioners Personal interviews
Types of restaurants
. Until December 2003.McDonald's restaurants are found in 120 countries and territories around the world and serve nearly 54 million customers each day. but as of 2005. It also has a subsidiary.
located mostly in downtown districts. In contrast. paying for. there is also a McDonald's with a 24 carat (100%) gold chandelier and similar light fixtures. it was first introduced in Arizona in 1975. often has separate stations for placing. and picking up orders.Specially themed restaurants also exist.
. Norway. Drive-Thru. Most standalone McDonald's restaurants offer both counter service and drive-through service." a 1950s rock-and-roll themed restaurant. British Columbia. In some countries "McDrive" locations near highways offer no counter service or seating. though the latter two steps are frequently combined.A McDonald's restaurant in Kristiansand. such as the "Solid Gold McDonald's. Auto-Mac. In Victoria. that offer Walk-Thru service in place of Drive-Thru. following the lead of other fast-food chains. or McDrive as it is known in many countries. Pay and Drive. locations in high-density city neighborhoods often omit drive-through service. with indoor and sometimes outdoor seating. There are also a few locations.
Inside a Dublin McCafé.
Today. designed for children aged four-to-eight that promotes physical fitness through fun play. Illinois. Other McDonald's are located in Wal-Mart stores. Equipped with stationary bicycles attached to video games. with many more being constructed soon after. In Tasmania there are McCafés in every store. most McDonald's in Australia have McCafés located within the existing McDonald's restaurant. with the rest of the states quickly following suite. an obstacle course. Some locations are connected to BP gas stations/convenience stores. The first PlayPlace with the familiar crawl-tube design with ball pits and slides was introduced in 1987 in the USA. McDonald's introduced McCafés. The McCafé concept is a café-style accompaniment to McDonald's restaurants. and other games which emphasize physical activity.As of the end of 2003 there were over 600 McCafés worldwide. which was the ninth McDonald's restaurant opened. The "R Gym" features the Toddler Zone. basketball hoops.
Some McDonald's in suburban areas and certain cities feature large indoor or outdoor playgrounds.To accommodate the current trend for high quality coffee and the popularity of coffee shops in general. some Australian stores have noticed up to a 60% increase in sales. the Sports Zone which features a series of sport oriented activities to promote aerobic exercise for children
. while others called McDonald's Express have limited seating and/or menu or may be located in a shopping mall.The site of the first McDonald's to be franchised by Ray Kroc is now a museum in Des Plaines. dance pads. monkey bars."R Gyms" are in-restaurant play area that features interactive game zones designed for children aged 4 to 12. the Active Zone. called "McDonald's PlayPlace" (if indoors) or "Playland" (outdoors. The building is a replica of the original. After upgrading to the new McCafe look and feel. Some PlayPlace playgrounds have been renovated into "R Gym" areas. starting with Melbourne in 1993. McCafé is a concept of McDonald's Australia. McStop is a location targeted at truckers and travelers which may have services found at truck stops. an active play environment with age appropriate games that develop physical coordination and social skills.
and percentage of sales.aged 9-to-12. the Parent Zone which features seating and provides a monitoring area for their children. Contemporary art or framed photographs will hang on the walls. with the majority under the ownership of the company. with modern hanging lights to produce a softer glow. partially linked to sales. the restaurants will have less plastic and more brick and wood. in that fewer than 30% of restaurants are franchised. The new design will include the traditional McDonald's yellow and red colors. and the Dining Area which allows families to eat. supplies. the Corporation owns the properties on which most McDonald's franchises are located. In addition to ordinary franchise fees. the yellow will turn golden for a more "sunny" look.
Different music will be targeted to each zone. The new restaurants will feature areas:
The "linger" zone will offer armchairs. and olive and sage green will be added. The UK business model is different. McDonald's
. McDonald's introduced its "Forever Young" brand by redesigning all of their restaurants. As a condition of the franchise agreement. Plasma TVs will offer them news and weather reports. The "grab and go" zone will feature tall counters with bar stools for customers who eat alone. and Wi-Fi connections.The exterior will have golden awnings and a "swish brow" instead of the traditional double-slanted mansard roof. The "flexible" zone will be targeted toward families and will have booths featuring fabric cushions with colorful patterns and flexible seating.
The McDonald's Corporation's business model is slightly different from that of most other fast-food chains. but the red will be muted to terra cotta. sofas. McDonald's also collects rent. the first major redesign since the 1970s. To warm up their look.
. and apples. nearly one in eight workers in the U. wraps and other localized fare. various types of chicken sandwiches and products.trains its franchisees and others at Hamburger University in Oak Brook. (According to a news piece on Fox News this figure is one in ten). Illinois. and desserts. The book also states that McDonald's is the largest private operator of playgrounds in the U. soft drinks. have at some time been employed by McDonald's. This local deviation from the standard menu is a characteristic for which the chain is particularly known.. breakfast items. pork.
McDonald's predominantly sells hamburgers. potatoes.According to Fast Food Nation by Eric Schlosser (2001). The selection of meats McDonald's uses varies with the culture of the host country. as well as the single largest purchaser of beef.S. In most markets.S. McDonald's offers salads and vegetarian items. french fries. and one which is employed either to abide by regional food taboos (such as the religious prohibition of beef consumption in India) or to make available foods with which the regional market is more familiar (such as the sale of McRice in Indonesia).
Nonetheless. the company makes significant use of billboards and signage. In addition to the usual media (television. television has always played a central role in the company's advertising strategy. McDonald's has used 23 different slogans in United States advertising. it has run into trouble with its campaigns. and makes coolers of orange drink with their logo available for local events of all kinds.
. sponsors sporting events from ranging from Little League to the Olympic Games. and newspaper).Ronald McDonald McDonald's has for decades maintained an extensive advertising campaign. radio.To date. as well as a few other slogans for select countries and regions. At times.
"de Mac" (in the Netherlands).The brand is known informally as "Mickey D's" (in the US and Canada). "Macarrannis" (in Mexico). and the 2006 Lebanon War as exceptions.Countries with McDonald's stores McDonald's has become emblematic of globalization. driving customers to demand the same of
. 1998. "McD's" (in New Zealand). Quebec. A group of anthropologists in a study entitled Golden Arches East (Stanford University Press.Some observers have suggested that the company should be given credit for increasing the standard of service in markets that it enters. the "Golden Arches Theory of Conflict Prevention" is not strictly true. "Mäkkäri" (in Finland). NATO's bombing of Serbia in 1999. However. McDonald's was the first restaurant to consistently offer clean restrooms. Iceland has the most expensive Big Mac. Watson) looked at the impact McDonald's had on East Asia.Thomas Friedman once said that no country with a McDonald's had gone to war with another. The Economist magazine uses the "Big Mac Index": the comparison of a Big Mac's cost in various world currencies can be used to informally judge these currencies' purchasing power parity. and the Kansai region of Japan). "McDo" (in France. followed by Norway and Switzerland. the Philippines. "Maccer's" (in Ireland).The EFTA countries are leading the Big Mac Index with the top 3 most expensive Big Mac's. When it opened in Hong Kong in 1975. and Hong Kong in particular. edited by James L. sometimes referred as the "McDonaldization" of society. "Donken" (in Sweden). "Maccas" (in New Zealand and Australia). or "Mac" (in Brazil). Careful historians point to the 1989 United States invasion of Panama. "Macky D's" (in the UK).
McDonald's have recently taken to partnering up with Sinopec. Having signed their joint-venture agreements with McDonald's in April 1995. Jaipur. owns and operates McDonald's restaurants in Western India. China's second largest oil company. Pune. Ltd headed by Vikram Bakshi owns and operates the Northern operations. Ltd. Only the freshest chicken. Ahmedabad. Vadodara. Even the soft serves and McShakes™ are egg-less. McDonald's does not offer any beef or pork items in India. Respect for local culture McDonald's India has developed a special menu with vegetarian selections to suit Indian tastes and preferences. Delhi. offering a larger variety to vegetarian consumers. In East Asia in particular. While Connaught Plaza Restaurants Pvt. what the McDonald's experience is all about. McAloo Tikki™ burger. in the People's Republic of China. Service. Veg. They have also created eggless sandwich sauces for vegetarian customers. in McDonald's restaurants in Indonesia and the U. Ever since then.
McDonalds IN INDIA
McDonald's opened its doors in India in October 1996.S. they trained extensively. Amit Jatia’s company Hardcastle Restaurants Pvt.other restaurants and institutions. much to the delight of all our customers. Doraha. our family restaurants in Mumbai. Noida Faridabad. Manesar and Gurgaon have proceeded to demonstrate. Ludhiana. along with their Indian management team. Cleanliness and Value (QSC&V). Pizza McPuff™ and Chicken McGrill™ burger. McDonald's have become a symbol for the desire to embrace Western cultural norms. as it begins to take advantage of China's growing use of personal vehicles by opening numerous drive-thru restaurants. fish and vegetable products find their way into our Indian restaurants In addition. International Standards
. Locally Owned McDonald’s in India is a 50-50 joint venture partnership between McDonald’s Corporation [USA] and two Indian businessmen. Among these are McVeggie™ burger.Amit Jatia and Vikram Bakshi are likeminded visionaries who share McDonald's complete commitment to Quality. they have re-formulated some of their products using spices favoured by Indians.A. before opening the first McDonald’s restaurant in India.
he was letting the world in on the philosophy and secret behind McDonald's phenomenal success. Service. while maintaining company’s own recognized international standards. health and hygiene is ensured. Complete adherence to the Indian Government regulations on food.
. We believe in a collaborative management approach. and all at a fair price We are committed to exceeding our customers' expectations in every restaurant every time. Company Philosophy "We take the burger business more seriously than anyone else. Ray Kroc made that memorable statement.the very best was served every time. Such meticulous attention to cleanliness extends beyond the lobby and kitchen to even the pavement and immediate areas outside the restaurant.a hot Maharaja Mac or an apple pie . freshest ingredients. We will seize every opportunity to innovate and lead the industry on behalf of our customers. Fast. which extended from these outlets right up to farms all across India.McDonald's India's local suppliers provide them with the highest quality.It is an unflinching McDonald's ideology that our customers must always get quality products. friendly service ." When McDonald's founder. But did anyone ever wonder as to how this US giant managed the show so perfectly? The answer seemed to lie in a brilliantly articulated food chain. No matter what one ordered .the hallmark of McDonald's restaurants the world over is the mantra they abide by.
• • • •
It was early evening and one of the 25 McDonald's outlets in India was bustling with activity with hungry souls trooping in all the time. Stringent cleaning standards ensure that all tables. in a clean and pleasant environment. served quickly and with a smile. We have a passion and a responsibility for enhancing and protecting the McDonald's brand. The principles that guide McDonalds are …
Quality. Cleanliness & Value . employing a mutually respectful business philosophy. highchairs and trays are sanitised several times each hour. chairs.
Yet. when McDonald's opened its first outlet in India.
. transformation of materials into semi-finished and finished products.000 crore worth of food produce is wasted in India? This is mainly because of the lack of proper infrastructure for storage and transportation under controlled conditions.A Supply Chain is a network of facilities including . they would pop out of the patty and get burnt). approximately 85% of McDonald's restaurants were owned and operated by independent franchisees. McDonald's success in India had been built on four pillars: limited menu. Rs.US-based fast food giant.encouraged the fast food giant to customize product variety without hampering the efficacy of its supply chain. raw material flows as follows: supplier .manufacturer – distributor – retailer – consumer. McDonald's was able to run the show seamlessly by outsourcing nine different ingredients used in making a burger from over 35 suppliers spread all over India through a massive value chain. McDonald's is committed to providing quality products while supporting other Indian businesses. And explained to the suppliers precisely why only one particular size of peas was acceptable (if they were too large. And so. 50.Around the world (including India).material flow from suppliers and their "upstream" suppliers at all levels. It trained the local farmers to produce lettuces or potatoes to specifications and worked with a vendor to get the perfect cold chain in place. So. and distribution of products to customers and their "downstream" customers at all levels. we spent a few years setting up a unique Supply Chain. These efforts paid off in the form of joint ventures between McDonald's India (a 100% wholly-owned subsidiary of McDonald's
Supply chain management at McDonalds (India)
Did you know that every year. it worked frenetically to put the perfect supply chain in place. fast service and affordable price. fresh food. Intense competition and demands for a wider menu. Between 1992 and 1996. drive-through and sit-down meals . even before we opened our first restaurant in India.
the Supply Chain may include major product elements. When there is a balance in the finished product ordering. However. may see no need for this functionality. Its immediate customer.Information and money flows in the reverse direction. the Supply Chain operates at its best. This is called the Bullwhip Effect. For example. It is critical to go beyond one’s immediate suppliers and customers to encompass the entire chain. a diesel engine manufacturer may be able to integrate a GPS locator system into its engine control system. longer lead times. shortages / stock outs. and both upstream and downstream activities. The balance between these 3 flows is what a Supply Chain is all about. geographically dispersed activities. various suppliers. and mistrust between supply chain partners. the downstream customer. Understanding the value to the downstream customer is part of the supply chain management process
. since hidden value often emerges once the entire chain is visualized. may be very interested in a locator system. a heavy truck manufacturer. a trucking company with a large fleet. Depending on the situation. higher transportation and manufacturing costs. Any major fluctuation in the product ordering pattern causes excess / fluctuating inventories.
which can supply them the highest quality products required for their Indian operations. changed the Indian fast food scenario to match international standards. besides several others standalone restaurants working with it. Sanjeev Bhar traces its supply chain management that played a vital role in its growth. the acronym has been seamlessly absorbed in the industry lingo." As per today's standings. Recalling the association. For McDonald's India. About two decades ago.six years before it started its actual operations. Today. According to Vikram Bakshi. a part of the Radha Krishna Group engaged in food-related service businesses. Considering. Tracing its success path McDonald's had been working critically on its supply chain part. "We had to ensure that we had the back-end linked up to the farm level for delivery commitment. an international brand trying to make inroads into the Indian consciousness. Bakshi explains. And its success is credited to its well-established supply management chain. its Indian supplier partners were developed in such a manner that made them stay with the company from the beginning. The transition towards the latest technology. McDonald's." The company also deployed the latest state-of-the-art food processing technology for having a sound supply chain. for various requirements. it has developed local Indian businesses. "Better facilities and infrastructures
. Bangalore in 2004. McDonald's entered its first distribution partnership agreement with Radha Krishna Foodland.Big Mac's supply chain success
The seed of McDonald's success was sown in 1990 . the distribution centres hold special place for bringing food right to the outlet counters. The association goes back to July 1993. McDonald's India works with as many as 38 Indian suppliers on a long-term basis. the QSR wouldn't have meant much to the Indian F&B segment. "The success of McDonald's India is a result of its commitment to sourcing almost all its products from within the country. Bakshi remarks. one of the first brands that left a strong imprint on the Indian QSR history. arguably. the distribution centres came in the following order: Noida and Kalamboli (Mumbai) in 1996. when it studied the nuances of McDonald's operations and requirements for the Indian market. and the latest one in Kolkata (2007). managing director and joint venture partner of McDonald's India (North & East). which has been subsequently noticed in other QSRs as well. In the supply chain management for a QSR. has much to do with this. the company invested about Rs 400 crore even before its first restaurant commenced operations in October 1996. For this purpose.
the supplier gets the opportunity to expand his business. The HACCP verification is done at least twice in a year and certified. Farm infrastructure features:
A specialised nursery with a team of agricultural experts. health and hygiene while continuously maintaining McDonald's recognised standards.
. control points and critical control points for all McDonald's major food processing plands and restaurants in India have ben identified. As McDonald's expands in India. The limits have been established for those followed by monitoring. Setting up of the Cold Chain has also enabled us to cut down on operational wastage Hazard Analysis Critical Control Point (HACCP) is a systematic approach to food safety that emphasizes prevention within our suppliers' facility and restaurants rather than detection through inspection of illness or presence of microbiological data. special herbs and many oriental vegetables. As the ingredients move from farms to processing plants to the restaurant. exposure to advanced agricultural practices and the ability to grow or to export. The relationship between McDonald's and its Indian suppliers is mutually beneficial. recording and correcting any deviations.
Trikaya Agriculture Suppier of Iceberg Lettuce Implementation of advancved agricultural practices has enabled Trikaya to successfully grow speciality crops like iceberg lettuce.Vital Links in McDonald’s Cold Chain
All suppliers adhere to Indian government regulations on food. There are many cases of local suppliers operating out of small towns who have benefited from their association with McDonald's India. McDonald's Quality Inspection Programme (QIP) carries out quality checks at over 20 different points in the Cold Chain system. have access to the latest in food technology. Based on HACCP guidelines.
procedures and support services. to retain total freshness. has :
• • •
Separate processing lines for chicken and vegetable foods. A world class infrastructure at their plant at Taloja. Supplier of Chicken and Vegetable range of products (including Fruit Pies) A joint venture with OSI Industries Inc. produces a range of frozen chicken and vegetable foods. McDonald's India Pvt. USA. Ltd. International stardards. Capability to produce frozen foods at temperature as low as -35 Degree Cel.
Vista Processed Foods Pvt. Ltd.. and Vista Processed Foods Pvt.• • •
Drip and sprinkler irrigation in raised farm beds with fertiliser mixing plant. Refrigerated truck for transportation.
. Ltd. Pre-cooling room and a large cold room for post harvest handling.. Maharashtra.
The factory has:
• • •
Fully automatic international stardard processing facility. Maharashtra by setting up a network of milk collection centres equipped with bulk coolers. Stringent quality control measures and continuous Research & Development
. skimmed milk powder.Dynamix Diary Supplier of Cheese Dynamix has brought immense benefits to farmers in Baramati. Easy accessibility has enabled farmers augment their income by finding a new market for surplus milk. Capability to convert milk into cheese. lactose. casein & whey protein and humanised baby food. butter/ghee.
manufactures widely popular brands .
.Gagan Milk and Nandan Ghee at its factory at Ghaziabad. • Strict quality control supported by a fully equipped quality control laboratory. Dry and cold storage facility to store and transport perishable products at temperatures upto -22 Degree Cel. Effective process control for minimum distribution cost. Installed capacity of 6000 ltrs/hr for producing homegenised UHT (Ultra High Temperature) processed milk and milk products. Uttar Pradesh. inventory management. Salient strenghts are :
• • •
A one-stop shop for all distribution management services. providing the entire range of services including procurement. The factory has:
State-of-the-art fully automatic machinery requiring no human contact with product. deliveries.Amrit Food Supplier of long life UHT Milk and Milk Products for Frozen Desserts Amrit Food. storage. recording and reporting. for total hygiene. data collection. quality inspection.
Radhakrishna Foodland Distribution Centres for Delhi and Mumbai An integral part of the Radhakrishna Group. Foodland specialises in handling large volumes. an ISO 9000 company.
thus ensuring that McDonald's commitment to growth was mirrored by that of its partners. In keeping with this belief. The relationship between McDonald's and its Indian suppliers is mutually beneficial. Based on HACCP guidelines. health and hygiene while continuously maintaining McDonald's recognised standards. McDonald's India today purchases more than 96% of its products and supplies from Indian suppliers. contractors. Even our restaurants are constructed using local architects.McDonald's has always been committed to sourcing its requirements from local suppliers and farmers. There are many cases of local suppliers operating out of small towns who have benefited from their association with McDonald's India. have access to the latest in food technology. get exposure to advanced agricultural practices and the ability to grow or to export. control points and critical control points for all McDonald's major food processing plants and restaurants in India have been identified. All suppliers adhere to Indian government regulations on food. The HACCP verification is done at least twice in a year and certified. McDonald's Quality Inspection Programme (QIP) carries out quality checks at over 20 different points in the Cold Chain system. Setting up of the Cold Chain has also enabled us to cut down on operational wastage Hazard Analysis Critical Control Point (HACCP) is a systematic approach to food safety that emphasizes prevention of illness or presence of microbiological data within our suppliers' facilities and our restaurants rather than its detection through inspection. the supplier gets the opportunity to expand his business. As the ingredients move from farms to processing plants to the restaurant.
. health and hygiene were a top priority. As McDonald's expands in India. Adherence to Indian Government regulations on food. we have carefully identified local Indian businesses that take pride in satisfying customers by presenting them with the highest quality products. This assurance is rooted in the philosophy of our company's founder. He firmly believed in mutual benefits arising from a partnership between McDonald's and the local businesses. Ray Kroc. labour and maximum local content in materials.
USA. Maharashtra. special herbs and many oriental vegetables. and McDonald's India Pvt. Ltd. Ltd. Capability to produce frozen foods at temperature as low as -35 Degree Celsius to
. A world class infrastructure at its plant at Taloja. Ltd.Trikaya Agriculture . Pre-cooling room and a large cold room for post harvest handling. Farm infrastructure features:
A specialised nursery with a team of agricultural experts. Vista Processed Foods Pvt. . produces a range of frozen chicken and vegetable foods.. Refrigerated truck for transportation.Supplier of Iceberg Lettuce Implementation of advanced agricultural practices has enabled Trikaya to successfully grow speciality crops like iceberg lettuce. has :
Separate processing lines for chicken and vegetable foods.
Vista Processed Foods Pvt. Drip and sprinkler irrigation in raised farm beds with fertiliser mixing plant.Supplier of Chicken and Vegetable range of products A joint venture with OSI Industries Inc.
International standards. procedures and support services. Capability to convert milk into cheese. Maharashtra by setting up a network of milk collection centres equipped with bulk coolers. lactose. skimmed milk powder. Easy accessibility has enabled farmers augment their income by finding a new market for surplus milk. butter/ghee.
Dynamix Diary . The factory has:
Fully automatic international standard processing facility.retain total freshness. casein & whey protein and humanised baby food.Supplier of Cheese Dynamix has brought immense benefits to farmers in Baramati.
an ISO 9000 company.
.Gagan Milk and Nandan Ghee at its factory at Ghaziabad. Installed capacity of 6000 litres / hour for producing homogenised UHT (Ultra High Temperature) processed milk and milk products.Supplier of long life UHT Milk and Milk Products for Frozen Desserts Amrit Food. Uttar Pradesh. manufactures widely popular brands . for total hygiene. Its plant has:
State-of-the-art fully automatic machinery requiring no human contact with product.•
Stringent quality control measures and continuous Research & Development
Amrit Food .
Distribution Centre An integral part of the Radhakrishna Group. Foodland specialises in handling large volumes. quality inspection. Dry and cold storage facility to store and transport perishable products at temperatures up to . data collection. storage.•
Strict quality control supported by a fully equipped quality control laboratory. providing the entire range of services including procurement.
Radhakrishna Foodland . deliveries.22 Degrees Celsius. Salient strengths are :
A one-stop shop for all distribution management services. recording and reporting. Effective process control for minimum
. inventory management.
Foodland has regularly won the Best Supplier Award from McDonald's.
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McDonald's opened its first store in India in October. West & South of the country.Over 1000 Movement mainly by road Regular movement of perishables by air
. storage. quality inspection. subsequent to the commencement of our relationship.
Over the years. We handle their entire range of services including procurement. 1996 and currently has 113 stores. data collection. spread across the North.Over 65 % temperature controlled Stores as far as 500 – 1000 kms Drops per month . recording and reporting.distribution cost. inventory management. deliveries. We have the sole responsibility of McDonald's entire supply chain all across India. Products .Challenges
• • • • • •
Full Supply Chain responsibility Multi Temp.
Platter Of Services
• • • • •
Supply Chain Structuring Inventory Planning & Replenishment Management Warehouse Management Customer Order Fulfillment Logistics – Temperature Controlled
. handling and distribution solutions to various clients. Ltd.• • • • • •
Routing Challenges No margin for error – Operations critical client No Stock Outs at store On time delivery record – above 97 % Clean delivery record – above 99 % Unfailing inbound supply chain
Foodland : how it helps in supply chain of McDonalds?
Foodland provides Customized Distribution & Logistics services encompassing the entire supply chain. (RKHS) Objective To provide a cost effective solution to our customers ensuring product integrity throughout the supply chain. which include organisations such as McDonald's and Radhakrishna Hospitality Services Pvt. The services are tailor made to suit each client’s requirements. such as storage.
3. 4. Dedicated to ‘cold chain’ movement The only logistics solution provider with expertise in handling agri – produce Total kilometer run per month is – 7.000 tons
. Key Features: 1.00.It handles bulk transportation of temperature sensitive products. 2.000 km Perishable tonnage handled per month – 7.
Robust quality systems & processes First in the country to use multi temperature vehicles Use of innovative methods to ensure temperature integrity during transit Experienced staff – The BEST in the industry.
Its experience of over a decade in the logistics & distribution industry has led us to believe that there is still one area which remains poorly serviced – that of
movement of small volumes of perishable items across the country.
.5. 8. 6.
or through bulk carriers with very little control on the delivery schedule. Given the current scenario. such as Frozen (below –18ºC) and Chilled (1ºC to 4ºC) can be transported Flexibility of load movement . thus losing out on potential revenue opportunities. combined with our domain expertise in the logistics & distribution area.A minimum of 500 kgs to maximum of 5000 kgs can be transported In transit temperature tracking Fixed schedule of pickup and delivery Well trained and experienced manpower Adherence to strict hygiene standards
. Fresh Rush is a temperature controlled transportation service addressing the needs of small volume cargo. for want of a cost-effective and reliable logistics solution. Fresh Rush – Features
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Multi temperature products. which is expensive. there is no reliable service provider to cater to this need. And because currently. end up deciding not to market their products which are of a perishable nature in certain markets.Our experience also tells us that many companies. we have launched a new service . companies have to move goods either by air.Fresh Rush.
Consignment can be tracked through GPS system
1. value adds. stores and distributes various kinds of perishable and non-perishable food products
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First of its kind in India Designed as per global standards The centre procures.
Crate Wash Facilities.Food Park – Features
• • • • • • • • • • • • •
Spread over 33. Blast Freezer. Flake Ice Machine
.000 sq meters Multi Temperature Zones Integrated Facility – Storage and Value Addition capabilities under one roof Ensured / Guaranteed Food Safety Paradigm shift in the way food is handled in the supply chain in India First of its kind in the region Benchmarked against global standards Codex / USDA / PFA compliant Scalable Dedicated storage for specific categories Sanitation / Hygiene standards – Trash handling Air / Water Quality – Treatment Plant / ETP Ripening Rooms.
Meat.000 pick faces Processing Vegetable & Fruits – 21 tonnes per day Meat – 3 tonnes per day Fish – 3 tonnes per day Blast Freezing – 6 tonnes – per day
o o o o
.700 pallet positions and over 4.000 cases with 1. Sea Food and Poultry Controls – Building Management System (BMS) 100 % Power Back Up
Food Park – Capacity
• • •
Capacity to manage over 6000 SKUs Can store 70.• • •
Value Added Services – Processing of Vegetables & Fruits.
each one in a multiplex.000 cases with 1400 pallet position and 3.The demand for different departments also vary from one outlet to another.4 tonnes per day
. Every organisation. Mc Donalds forecast its requirements on a daily basis. we conducted this study in the month of March and the demand during this time is affected by the school and college examinations. Likewise.600 pick faces
3. where there are three outlets of Mc Donalds. revealed that their forecasting depends on a few factors like the upcoming movie release in that week and its response.500 sq meters Dry Provisions DC Capacity to manage over 9000 SKUs Can store 80.•
Ice Machine – 2. no matter how big or small in size.This is because without forecasting the demand and supply requirements. The study that we did in Indore.has its own forecasting techniques. the orders cant be fulfilled. Kanjur Marg DC
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Spread over 3. Delhi DC (Noida)
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Dedicated to operations in the North Highly functional DC Chiller / Freezer / Dry Storage Capacity to manage 576 pallet positions
Findings of study conducted
1. for order processing. Similarly.
Pune on tuesday. that due to the ephimeral shelf-life of tomatoes.The food items are transported via air conditioned trucks having different chambers.as per the suitability and requirements of the stock. specifically of four to five inches diameter which undergoes a thorough sanitization process. after which they are dumped as waste.they are not kept for more than ten minutes.The sources at Mc Donalds told u sthat the trucks from Mumbai reach Indore on Monday. The items which are to be procured from foreign territories comes to India via ships.
. 3. only after which it is used.The rounding and scheduling of ouput and input is done manually and through computer based softwares too.The trucks have pre-defined destinations to reach each day. but they do not have any local vendor. In India too.Every organisation has its inventory cycle.2. The concerned person told us. The Radhakrishna Foodland not only process the fooditems but also handle the logistics partially.Mc Donalds does not have any third party logistics.and their stock is stored at the outlets itself. But once the menu items are cooked. 4. like the french fries are obtained from new Zealand via shipments.All the raw material comes in a frozen form. 5. Every product used in preparing the menu items come with an expiry date. that is The Radhakrishna Foodland. They have a fixed vendor.Radhakrishna Foodland had been working with Mc Donalds for the past ten yearsand the trems abd conditions for choosing the network design was decided by the headquarters of Mc Donalds itself. Hyderabad on wednesday and so on at Bangalore and Gujarat too.The delivery center is at Mumbaiwhere from the required stock is transported to different locations.The Mc Donalds outlets do keep a safety inventory.Mc Donalds has its outlets in different parts of the globe. like the French-fries served in Mc Donalds has a life of two hundred and seventy days. 6. which caters the range of 230 products that Mc Donalds require. Mc Donalds has numerous outletsin different cities.helping the staff in assessing the stock quantity at the end of each day. There are daily product safety checklist which is maintained manually as well as with the help of computer softwares too. They keep the buffer stock for a period of three days.They do assess their daily requirements via safety checklists.Each chamber is designed for the different kind of stock at different temperature levels. it i sthe only commodity that they make purchase from local markets.
from the customers end are duly heard and resolved as per the need of the situation.
.Mc Donalds believe in the saying "Customer is the King" and thus the the complaints .With the evolvement of the new technologies and convenient softwares. 8. the conventional methods of maintaining suplly chain records are now a passe`. Mc Donalds too use a standardized visual Foxpro based program via which the outlets are linked with the head office and the Radhakrishna Foodland too.7. if any.