McDonald’s suppliers

New Delhi 50-50 Joint venture between McDonald’s Corporation (USA) and Hardcastle Restaurants Pvt Ltd and Connaught Plaza Restaurants Pvt Ltd McDonald's India now has a network of over 250 restaurants Serving more than 6.5 lakh customers daily in India Vegetable products are prepared separately. 2011 McDonald’s has a 100% outsourced supply chain model Cold chain system set up over 6 years reduces wastage and maintains freshness • • • • • • .Introduction • • • • McDonald's is the world's leading food service retailer with more than 33.000 restaurants in 118 countries Serving more than 67 million customers each day McDonald's India started operations in 1996 at Vasant Vihar.McDonald’s India . using dedicated equipment McDonald's won the award for Innovations in Technology Infrastructure and Value Chain Innovations (Sustainability) at the Parivartan Awards.

pre-cooling and cold room are located at the farms itself to ensure no delay .Trikaya Agriculture • Supplier of Iceberg Lettuce • Investments in cooling plant and refrigerated vehicles • Specialized nursery with a team of agricultural experts • Drip and sprinkler irrigation in raised farm beds with fertilizer mixing plant. • The pack house.

• Hi-tech refrigeration plants for manufacture of frozen food at temperatures as low as -35⁰C .Vista Processed Foods • Supplier of Chicken and Vegetable products • Joint venture between OSI industries and McDonald’s India • World class infrastructure and support services. • Separate processing lines for chicken and vegetable foods.

Dynamix Dairy • Supplier of Cheese • Fully automatic international standard processing facility • Network of milk collection centres equipped with bulk coolers • Dedicated quality program • Dedicated R&D centre .

McCain Foods • Supplier of potatoes • Helping farmers with hotter agronomy techniques. including irrigation. fertilizer application and storage . sowing seeds treatment. planting methods.

• Effective process control for minimum distribution cost .Radhakrishna Foodland • Sole distributor of McDonald’s • Created better facilities. storage. Celsius • Responsible for procurement. infrastructure and new systems to satisfy McDonald’s demands • Dry and cold storage facility to store and transport perishable products at temperatures up to -22 Deg.Logistics . quality inspection. inventory management etc.

An internet sourcing site designed for McDonald’s Corporation’s 27000 franchises(next generation e-procurement POS software) • A sourcing hub launched in 2001 allows all McDonalds franchises across the globe to buy everything needed to run their restaurants • Faster and more convenient • Allows business owners to buy supplies at a discounted price • Allows an 85% cost reduction .E-Procurement McDonald’s E-procurement – A major reason for the successful management of their supply chain aiding the existing logistic structure EMac Digital .

McDonalds Kano Model .

Single sourcing dilemma • Advantages  Better pricing through higher volumes  Better quality through continuous improvements  Stronger and Long term relationship  Inventory and Scheduling •     Disadvantages Supply Disruption due to default by supplier Price Escalation Long Time required for vendor development Absolute reliance leading to absolute exploitation .


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