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PROJECT ON

SUPPLY CHAIN MANAGEMENT

Perishable Products (Restaurant Chain)

Group Members

Nikhil Jadhav (8126)


Asif Shaikh (8150 )
Pooja Shetty (8153)
Sunil Singh (8155)
Imran Khan (8185)
Ashwin Kodati (8187)

OBJECTIVE :
Understand
Understandthe
themarkets
marketsbasic
basicrequirements
requirementsof
ofthe
theproduct.
product.

Market
Marketpotential
potentialof
ofthe
theproduct
product

Competitive
Competitiveenvironment
environmentof
ofthe
thechosen
chosenproduct
product

Market
market dynamics
dynamics in
in terms
terms of
of consumer
consumer behavior
behavior about
about the
the
product
product
Detail
Detailinformation
informationon
onthe
theSupply
SupplyChain
Chain

Mfg
Mfglocations
locationsin
inIndia
India

How
Howproduct
productreaches
reachesto
toconsumer?
consumer?Criticality/significance
Criticality/significance
of
ofthe
theSupply
Supplychain
chain

Who
Whoare
areall
allintermediate
intermediatein
inbetween
betweenof
ofMfg
Mfgto
tofinal
final
consumer
consumere.g
e.gdealer,
dealer,C&F
C&Fagent,
agent,depot
depotetc
etc

Describe
Describerole
roleof
ofeach
eachintermediate
intermediatein
inthe
thesupply
supplychain
chain

MCDONALDS CORPORATION

McDonalds Vision, Mission and Value


Vision
To be the best & leading fast food
providers around the globe

Mission
To be the world's best quick service restaurant
experience. Being the best means providing
outstanding quality, service, cleanliness, and
value, so that we make every customer in every
restaurant smile."
Values
Our values summarized in Q.S.C & V. Provide
good quality, services to customer . Have
cleanliness environment when customer enjoys
their meal .The value of food product makes
every customer is smiling.

Quick Facts About McDonalds


McDonald's was started as a drive-in restaurant by two
brothers, Richard and Maurice McDonald in California,US
in the year 1937.
By mid-1950s, the restaurant's revenues had reached
$350,000.
Ray Kroc, distributor for milkshake machines, expressed
interest in the business, and he finalized a deal for
franchising with the McDonald brothers in 1954.
He established a franchising company, the McDonald
System Inc. and appointed franchisees.
In 1961, he bought out the McDonald brothers' share for
$2.7 million and changed the name of the company to
McDonald's Corporation. In 1965, McDonald's went
public

McDonald's In India
1996 - First restaurant opens in India, at
Basant Lok,Vasant Vihar, New Delhi.

McDonald's India is a 50 50 JV partnership


between McDonalds Corporation (U.S.A) and two
Indian businessman Amit Jatia (Hardcastle
Restaurants Private Limited, Mumbai)and Vikram
Bakshi (Connaught Plaza Restaurants Private
Limited, Delhi).
Two separate operations in Northern & Western
India.
Partners and their management teams trained
extensively in Indonesia & the U.S.
Approximately 75% of the menu available in
McDonalds in India is Indianized and specifically
designed to woo Indian customers.
The McDonald's philosophy of QSC&V is the
guiding force behind its service to the customers.

Market potential of the McDonalds

McDonalds has built up huge brand equity. It is the No. 1 fast-food


company by sales, with more than 31,000 restaurants serving
burgers and fries in almost 120 countries. Sales, 2007 (11,4009
million), 5.6% sales growth
Joint ventures with retailers (e.g. supermarkets).
Consolidation of retailers likely, so better locations for franchisees.
Respond to social changes - by innovation within healthier lifestyle
foods. Its move into hot baguettes and healthier snacks (fruit) has
supported its new positioning.
Use of CRM, database marketing to more accurately market to its
consumer target groups. It could identify likely customers (based on
modeling and profiles of shoppers) and prevent brand switching.
Strengthen its value proposition and offering, to encourage
customers who visit coffee shops into McDonalds.
The new formats, McCafe, having Wifi internet links should help
in attracting segments. Also installing childrens play-parks and its
focus on educating consumers about health, fitness.
Continued focus on corporate social responsibility, reducing the
impact on the environment and community linkages.
International expansion into emerging markets of China and India.

Competitive environment of the


Restaurant Chain (MCD)

Competitive environment

McDonalds India: Channel Network

McDonalds India: Network &


competitors

How product reaches to consumer?


Criticality/significance of the Supply chain

Geographically Diverse suppliers: Ensuring stringent quality standards

The McDonalds Supply Chain

Import
Breath of supply
process control
equipment
Supplier performance index

No direct control over issues, positive influence by raising questions,


bringing people to the table and encouraging improvement

VALUE CHAIN ANALYSIS OF


MCDONALDS

Inbound
logistics

Organizing the supply


of food and materials to
restaurants through
approved third party
logistics operators.

Inbound
Logistics

Production in huge
plants denoted
exclusive to McDonalds
control food
distribution and
packaging system

Operations

Firm

R&D in field research


needs of end users.
quality development in
Relatively
Few
collaboration
with good
Management Layers to
Infrastructure
suppliers
Reduce
Overhead
Effective Training Programs
Forward
to Improve
Worker integration:
Efficiency
and Effectiveness
through
franchisees with

Human Resource Management

Investments
in Technology
in order
control
over store
to Reduce Costs Associated with
presentation,
Manufacturing
Processes menu items

Technological Development

etc. and enhance

Procurement

Frequent Evaluation Processes to


participation
in process
Monitor
Suppliers Performances

Policy Choice of Efficient Order


Plant Technology Sizes
Organizational
Learning

Small, Highly
Trained Sales
Force
Products Priced to
Generate Sales
Volume

Service

Outbound
Logistics

Operations

Inbound
Logistics

improvement

Efficient Plant
Delivery Schedule
Scale to Minimize that Reduces
Manufacturing
Costs
Costs
Selection of Low
Timing of Asset
Cost Transport
Purchases
Carriers

Outbound
logistics

Firm Infrastructure

Is the concern of the


franchisee.

Outbound logistics
are growing as a part
Human Resource Management
of McDonalds
recycling system
Technological Development integrating in the
logistics of
Frequent Evaluation Processes to
distribution center
Procurement
Monitor Suppliers Performances

Efficient Order
Sizes

National Scale
Advertising

Interrelationships
with Sister Units

Marketing
& Sales
Service

Selection of Low
Cost Transport
Carriers

Effective Product
Installations to
Reduce Frequency
and Severity
Products Priced to of Recalls
Generate Sales
Volume

Outbound
Outbound
Logistics
Logistics

Delivery Schedule Small, Highly


that Reduces
Trained Sales
Costs
Force

Marketing

Firm Infrastructure
Human Resource Management

Outbound
Logistics

Operations

Inbound
Logistics

Procurement

Country teams are given


autonomy in marketing
mix decision.

Advertising & PR is
outsourced
(Mudra agency
in India)

Marketing
& Sales
Marketing
& Sales
Service

Technological Development

Long term marketing


objectives are broken
down into shorter term
measurable targets, which
McDonald uses as
milestones.

Service

Services
Firm Infrastructure provided by the
companies
enrollment
Human Resource Management
standards

Technological Development

Marketing
Service
& Sales
Service

Outbound
Logistics

Inbound
Logistics
Operations

Procurement

Procurement

Firm Infrastructure
Human Resource Management
Technological Development

Marketing
& Sales
Service

Outbound
Logistics

Inbound
Logistics
Operations

Procurement
Procurement

Sought partners with expertise on down trade distribution

R&D

Firm Infrastructure
Human Resource Management
Technological Development

Service

Outbound
Logistics

Operations

Procurement
Marketing
& Sales

Inbound
Logistics

Technology and development research in quality assurance, and packing


readdressed at lower cost, faster delivery chain system and process control
equipments, recycling system.

HRM

Firm Infrastructure
Human Resource Management
Technological Development

Service

Marketing
& Sales

Outbound
Logistics

Operations

Inbound
Logistics

HRM specialists in R&D Procurement


and expertise in food formulation, education to
raise awareness of issues and raise demand. The addressing
environmental issues and CRS.

INFRASTRUCTURE

Support
Activities

Firm Infrastructure
Human Resource Management
Technological Development

Service

Marketing
& Sales

Outbound
Logistics

Operations

Inbound
Logistics

Strong real estate portfolio.


International organization more than 50000 employees works in more
than 50 countries,

Process:

Who are all intermediate in between of Mfg to


final consumer.
Describe role of each intermediate in the supply
chain

Vital links of Mc Donalds cold chain.


McDonald's spent a few
years setting up a unique
Cold Chain.
The Cold Chain is necessary
to maintain the integrity of
food products and retain
their freshness and
nutritional value.

Procurement

warehousing

Transportation

Retailing of
food product

SUPPLIERS
Trikaya Agriculture
Supplier of Iceberg Lettuce
Vista Processed Foods Pvt. Ltd.
Supplier of Chicken and Vegetable range of products
(including Fruit Pies)
Dynamix Diary
Supplier of Cheese
Amrit Food
Supplier of long life UHT Milk and Milk Products for Frozen
Desserts

Distribution
Radhakrishna Foodland
Distribution Centres and cold storages.
Completely dedicated distribution and supply chain.
Matching supplier production with deliveries using ERP.
Quality inspection Program, quality check at 20 different
points in supply chain.
HACCP(Hazard analysis critical control points) food
safety standards emphasizing prevention of faults.

The five main performance objectives


are:
Speed
Cost
Quality
Dependability
Flexibility