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What were the problems in the initial attempts by McDonald's India to create its

French fries supply chain?


Step-by-step explanation
Before opening its first store in India in 1996, McDonald's spent six years building its supply
chain. During that time, the company worked to successfully source as many ingredients as
possible from India. However, French fries ("MacFries") were a particularly tough product to
source locally—and importing fries was undesirable for both cost and availability reasons.
Growing potatoes suitable for use as fries was challenging in India.
Despite the strides made, in 2011 Abhijit Upadhye, McDonald's then senior director of
Supply Chain India was still a worried man. Double-digit food inflation in India had been
putting cost pressure on the company. McDonald's had aggressive growth plans for the
coming years. The company had 240 restaurants, and planned to more than double by
2014. The MacFry was the single largest procurement item, so having a 100 percent local
supply was critical to avoiding high import duties. The question that troubled him was: "Will I
ever be able to eliminate imported fries from my supply chain?" This case describes
McDonald's India and McCain India's efforts to optimize the MacFry supply chain by
increasing local supply in a fast-growing emerging market using agronomy, farmer
relationship development and value chain innovation.

McDonald's is the world's largest hamburger fast food chain - feeding 68 million people per
day (more than the entire population of the UK) and serving 75 burgers every second.1 With
more than 420,000 employees at over 36,000 locations in over 119 countries2 and a new
McDonald's location opening every 14.5 hours3, you can imagine what a monumental
challenge it is to effectively and efficiently measure, document, and respond to each
individual location's crime challenges and security threats. That's why they partnered with
CAP Index - the leader in crime risk assessment and reporting.
Working closely with McDonald's teams, we helped develop an innovative classification
system and software solution called the Restaurant Risk Assessment Management
Program or R2AMP. Built using our dynamic CAPWare™ security management tools, this
comprehensive program was designed to identify and track security risks as well as provide
corrective measures to be considered at specific McDonald's locations. The R2AMP system
provides McDonald's with the following benefits:

 Identify and Rank Security Risks. Using data such as geographic location, facility
type, CAP Index Scores, and serious event history, McDonald's locations are
categorized into low, medium, and high risk tiers.
 Better Manage Costs by Optimizing Resource Allocation. Using the tier system,
McDonald's can now mitigate risk and optimize employee and customer safety while
better managing costs by allocating asset protection resources where they can be
most effective.
 Standardize Incident Response and Reporting. The R2AMP system helps each
location deliver a uniform response to and documentation of all serious incidents,
while also providing a central repository for that information.
 Monitor, Analyze, and Adjust. Using the collected data, McDonald's can monitor
changes at each location, visualize trends, and adjust security allocations
accordingly.

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