Supply chain management in Mc Donald’s

SUBMITTED BY : Aditi Saxena Mandeep singh Megha saxena Rahul Gupta Rohit Singh Shivansh Bharadwaj Vipin singh tomar 2010 mba_01 2010mba_13 2010 mba_14 2010 mba_21 2010 mba_24 2010 mba_25 2010 mba_29

' which meant that the burger must be consistent in terms of cost and quality • To meet such high standards. US • Its philosophy has been 'one world. McDonald's had a very well orchestrated supply chain. . it was essential to have an excellent supply chain management system • In India. one burger. Illinois.INTRODUCTION • McDonald's is a fast food chain with restaurants all over the world with headquarters in oak brooks. called the 'Cold Chain'.

he thought to open several of such restaurants so as to sell his multimixer milk shake machine • SOME IMPORTANT FACTS…… • In year 2004. distributor of milk shake maker. • 47 million customers served daily.8th most valueable brand. went to see Mcdonalds brothers hamburger stall in California.INTRO…… • IT STARTS WITH……. mcdonalds was the largest marketer of fast food in the world.ranked amoung top 100 firms in the world .multimixer. Ray Kroc. • 31000+ restaurants. • 2000. • 1999. 52. • In 1954. • With an opportunity.

activities. . • Supply chain activities transform naturalresources. raw materials and components into a finished product that is delivered to the end customer.inventory and labor.SUPPLY CHAIN • A supply chain is a system of organizations. people. information and resources involved in moving a product or service from supplier to customer. technology. including distribution capacity. • The primary objective of supply chain management is to fulfill customer demands through the most efficient use of resources.

.SUPPLY CHAIN IN MC DONALDS INDIA…….

Mc Donald’s Supplier .

• For chicken. maharashtra Milk collection centres with bulk coolers International standard and processing facilities Stringent quality control measures TRIKAYA AGRICULTURE (SUPPLYING ICEBURG LETTUCE) • Advanced agricultural practices helps them to grow speciality crops like lettuce and herbs. • Specialized in handling large volumes • Both dry and cold storage facility • An ISO 9000 firm • Supplies long life UHT milk/ milk products for desserts VISTA PROCESSED FOOD PVT. LTD. • Refrigerated transportation.LIST OF SUPPLIERS DYNAMIX DAIRY INDUSTRY (SUPPLYING CHEESE) • • • • Firm from baramati. • Pre cooling room and large cold room for post harvest. (FOR SUPPLYING FROZEN CHICKEN AND VEG PRODUCTS) RADHA KRISHNA FOODLAND (DISTRIBUTION CENTRE) AMRIT FOODS . temperature maintained is -35 degrees Celsius.

DIFFERENT ITEMS ARE SOURCED FROM DIFEERENT GEOGRAPHY IN INDIA……. ..

Supply Chain Integration .

• Inventory. • Facilities. storage time was minimal so as to reduce the wastage. The two main facilities are production sites and the storage sites. and finished goods within a supply chain. . assembled.they are the actual physical location in the supply chain network where the product is stored. In McDonalds. work in progress.THREE LOGISTICAL DRIVERS……. • Transportation. Refrigerated vans are used here in this case. because the products are perishable.it includes raw materials. or fabricated.it is the process where the inventory is moving from place to place.

how much a firm could charge for a particular goods and services that it makes available in the supply chain. This activity was taken care by mcdonalds corporation. • Pricing. • Information. cost.it includes data and analysis related to facilities. and distribution) in a supply chain. inventory. Here it was done by the mcdonalds only . storage. This activity was done by Radhakrishana food land that acts as their distribution centre. transportation. transportation.who will perform which activity( production.THREE CROSS-FUNCTIONAL DRIVERS…… • Sourcing. prices and customers in the whole supply chain.

PULL/PUSH PROCESS • Pull processes are initiated by a customer order while the push processes are initiated by the anticipation of customer order • Mcdonalds use both pull as well as push process. to a certain extent push is created and after that level the pull created by the firm did its task Various Suppliers supplies the materials Products delivered to Distribution centres Products delivered to Distribution centres Push stops pull starts here Customer order at restaurant .

SUPPLY CHAIN PROCESS CYCLE… customers Customer order cycle Retailer/ McDonalds restaurants Replenishment cycle distributor Procurement cycle suppliers .

INVENTORY MANAGEMENT MCDONALD’S WORKS ON JIT MODEL IT DOSE NOT BEGIN TO COOK ITS ORDER UNTIL CUSTOMER HAS PLACED AN ORDER CONTINIOUS INVENTORY CONTROL SYSTEM FOR UNCOOKED MATERIAL .

AUTOMATICALLY TRACKING OF REORDER INEXPENSIVE.Inventory control software MCDONALDS USES THE INVENTORY CONTROL SOFTWARE TO TRACK THE INVENTORY OF UNCOOKED MATERIAL MINIMIZE COST TO MAINTAIN INVENTORY IDENTIFICATION FOR ITEM CODES.ADVAN CE AND FASTEST IN USE COMPLEMENTORY WITH ALL WINDOWS SYSTEM .SERIAL NO.

FLOW DIAGRAM CUSTOMER ORDER PLACED BY CUSTOMER TRACKING OF COSUMED MATERIAL BY SOFTWARE REORDER IF INVENTORY FALLS AUTOMATIC UPDATION OF INVENTORY .