Presented to: Mr.

Muhammad Taha Dossal

Presented by:
Maria Farooq
Maria Mansoor Ali
Mariya Crystal
Bilal
Majid Mazhar

McDonalds History

McDonald's originally started as a small hamburger stand in

Bernardino, California, owned by Richard and Maurice
McDonald in 1945.

Re-opened in December 1948 as a self-service drive-in

restaurant.

In 1950s Ray Kroc, a Multimixer Salesman, signs a franchise

agreement with Richard and Maurice McDonald in the name of
McDonald Corporation at Illinois in 1955.
After few years in 1961, Ray purchased the ownership
from McDonald brothers.
Today 34,000 McDonald's restaurants serving 69 million
customers each day in over 119 countries.

McDonalds Pakistan History

McDonalds Pakistan is part of the Lakson Group of Companies, a leading

business house in Pakistan.

McDonalds first restaurant opened its door to the people of Pakistan in

September 1998 in Lahore and a week later in Karachi .

Today we have 27 restaurants in 8 major cities of Pakistan.

11 in Karachi
10 in Lahore
1 in Hyderabad, Faisalabad,, Sialkot, Islamabad & Rawalpindi & Kala
Shah Kaku).

McDonalds Statement
Vision Statement

To be the best and leading fast food

provider around the globe.

Mission Statement
McDonald's mission is to be our
customers' favorite place and way
to eat with inspired people who
delight each customer with
unmatched

Quality
Service
Cleanliness
Value

McDonalds Values

We place the customer experience at the core of all we do.

We are committed to our people Employee development.

We believe in the McDonalds System - Owner/Operators, Suppliers and Company

Employees, is our foundation.

We operate our business ethically.

We give back to our communities Charities.

We grow our business profitably.

We strive continually to improve.

McDonalds Products

McDonalds Target Market

McDonalds wants to attract as many customers as it can. But the main

targets of the efforts by McDonalds are following groups:

Parent visit McDonalds to give the children a treat.

Children want to visit McDonalds as it is a fun place to eat.

A business customer visits McDonalds during the day as service is quick,

the food tastes great and can be eaten in the car without affecting a busy
work schedule.

Teenagers are attracted by the Saver Menu which is affordable, and the
internet access.

Supply Chain Management in

Fast Food Sector

1.
2.

There are two key components to the fast food industry supply chain;
Raw materials are essential to the ultimate product - value added
component.
Quick, convenient, and quality food.

. The most important aspect of the industry supply chain is that it is driven
by the consumer.
. The consumer has what seems to be an endless amount of fast food chains
to choose from every day.
. McDonalds' main goal of their marketing is to make the consumer drive
that extra two blocks past the competitor to eat at their chain.

McDonalds Supply Chain

Management

Supply chain is extensive and

complex.

Efficient, safe and quality food at an

affordable price.

Large number of direct suppliers

companies that make or deliver final
products to their restaurants.

Large number of indirect suppliers

companies and farms that grow or
process the ingredients that are
eventually delivered to their direct
suppliers.

McDonalds E-Procurement
McDonalds E-Procurement System is basically a main reason for their successful
supply chain management.
It is so efficient that it provides the backbone not only to all the logistics but the
whole McDonalds supply chain management.
E-MAC Digital:
(Internet procurement site designed for McDonald's Corporation's 34,000
franchises)
E-MAC Digital Company is E-Procurement website which is jointly owned by
McDonalds and Accel-KKR Internet Co.
It is a procurement hub launched in 2001 allow all of McDonald's franchises across
the globe to buy everything needed to run their restaurants.

McDonalds E-Procurement

In the process of procuring a product, a

typical McDonalds franchise restaurant
places an order through E-MAC digital
website.

The order is sent to the suppliers. Suppliers

order is processed and managed by the
logistics.

The logistics sends the order of the products

to the franchise restaurants. It is the
responsibility of the E-MAC and logistics that
the products are sent to the restaurant.

All the above, steps are handled and executed

by the E-MAC digital.

McDonalds E-Procurement
Global
Franchises
Place Orders

Supply Received

E-MAC Digital

Suppliers

Logistics

McDonalds E-Procurement
Major
Supplier

Small
Suppliers

E-MAC Digital

McDonalds Logistics

Inbound
logistics

Operations

Outbound
logistics

McDonalds Logistics
INBOUND LOGISTICS
It is the movement of materials from suppliers and vendors into production processes and
storage facilities.
Based on the demand forecast, Manager orders the Venus Distributors on daily basis.
Venus Distributors stores all the raw materials, in its own cold stores and delivers only oneday material to the restaurant.
Venus Pakistan established its dedicated McDonalds Logistics Operations in 1997.

It also received the DQMP (Distribution, Quality, and Management Process) Certification
from McDonalds USA Audit Team.

Some branch has its own cold storage facility, which is used to store the daily-procured
raw material.

McDonalds Logistics
INBOUND LOGISTICS

There are only two products buns and Cokes, which are sent directly
to the restaurants.

Venus Pakistan has full-fledged facilities to pack locally

manufactured products in sachets such as sugar, tomato ketchup.

McDonalds Logistics
The transportation of McDonalds has
been completely outsourced and since 80% is
in refrigerated truck movement.
Multi-temperature and single temperature
trucks transport the fast food swiftly to the
McDonalds restaurants across the country.
The company has both cold and dry storage
facilities with capability to store products up
to -22 C as well as delivery trucks to
transport products at temperatures ranging
from room temperature to frozen state.
The specially designed trucks maintained the
temperature in the storage chamber
throughout the journey.

McDonalds Logistics
COLD CHAIN LOGISTICS
A cold chain is a temperature-controlled supply chain.
It is used help extend and ensure the shelf life of products such as fresh agricultural
produce, processed food.
McDonalds entire network supply-chain consists of movement
of goods through a cold chain
An interesting and innovative feature of this cold chain is that the same truck can carry
products at different temperatures
ranging from:
Frozen products at -18C to -25C
Chilled products from 1C-4C
Dry products at ambient temperatures

McDonalds Operation

Cooking procedure and recipe is documented so that the products

become standardized and customers get the similar taste, quantity and
quality to whichever restaurant they go.

It is the policy of McDonald's to throw away any burger if they remain

on heated grill for 15 minutes.

All the utensils and equipment used in cooking are washed at the closing
of restaurant every night, with anti-microbial fluid. Kitchen, floor,
washrooms and all other restaurant areas are cleaned after every half an
hour.

McDonalds Logistics
OUTBOUND LOGISTICS

Outbound logistics is the process related to the storage and movement

of products from the end of the production line to the users end.

When customers enter the restaurant, they go to the counter, give their
order, which they are served within a single minute.

McDonalds Distribution
McDonalds Distribution systems McDonald uses three types of distribution
strategy;

Franchising

Licensing

Joint ventures

McDonalds Forecasting
McDonalds uses qualitative forecasting methods to help aid in predicting
the future growth of the organization;

Market Research customer focus and information gathering from

customer and employees (through surveys).

Expert Opinions and judgment Delphi Technique

McDonald's Competitors

Subway

Kentucky Fried Chicken (KFC)

Mr. Burger

Burger King

Factors that Influence

Competition

McDonalds Market Share

Market Share

15%
25%

5%
10%

15%

30%

McDonalds
KFC
Subway
Mr. Burger
Burger King
Others

McDonalds SWOT Analysis

THANK YOU