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Supply Chain Management of McDonalds

McDonalds
McDonalds is a name which is today synonymous with the fast food. McDonald's is a fast food chain with restaurants all over the world It serves burgers and other fast food customized to local tastes. Its philosophy has been 'one world, one burger Headquarters: Oak Brooks, Illinois, US. In India, McDonald's had a very well orchestrated supply chain, called the 'Cold Chain'.

In year 2004, McDonalds was the largest marketer of fast food in the world. 31000+ restaurants. 47 million customers served daily. 1999- 8th most valuable brand. 2000- ranked among top 100 firms in the world In India: Incorporated in 1993, MIPL is McDonalds Indias wholly owned subsidiary. In India, McDonalds open its first restaurant in Vasant Vihar, South Delhi.

A SUPPLY CHAIN IS
A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer

Supply chain of McDonalds


In a fast food business, supply chain is of highest importance. It helps in minimizing cost, cut down the delivery time, improve the profits and at the same time maintain the highest standards. Before setting up their first restaurant in India, McDonalds infused around Rs. 400 crores in the supply and delivery chain. McDonalds developed local businesses that supply them the products and that too of highest standards. Today McDonalds have around 38 suppliers and that too on the long term basis. 1st distribution agreement was done by Radhakrishana group, a group engaged in food business in the year 1993 and it was their 1st distribution center

Concept of Cold Chain


A cold chain is a temperature-controlled supply chain. An unbroken cold chain is an uninterrupted series of storage and distribution activities which maintain a given temperature range. It is used help extend and ensure the shelf life of products such as fresh agricultural produce, processed foods. It was started by McDonalds in India. It took 6 years. Benefited to both consumers as well as farmers. Helped to maintain freshness and nutritional value of raw materials.

Steps involved in cold chain:

Procurement Warehousing Transportation Retailing All the above activities took place in temperature controlled atmosphere

List of suppliers
Dynamix dairy industry (cheese) Trikaya agriculture (iceburg lettuce) Vista processed food pvt ltd. (chicken and veg range of products Radhakrishana food land(distribution centre- delhi and mumbai) Amrit food(long life UHT milk and milk products for frozen desserts)

Batter & Breading from creminca EBL, Ludhiana

Special vegetarian sauce from quaker cremica, Punjab

Buns from Shah Bector & sons khooli Maharashtra, Cremica Ludhiana

Sesame seeds from Ghaziabad, Uttar Pradesh

Vegetable patty from Kiran foods, taoja Maharashtra

Fresh Iceberg lettuce From trikaya agriculture, telegacon Maharashtra, Ooty farms, ootacamandu TN, meena agritech, Delhi

Cheedar Cheese from Dynamix dairy industry Maharashtra

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

Push and Pull process:


Various suppliers supplies the materials

Products delivered to distribution centers

Products delivered to restaurant

Push stops here pull starts here

Customer order at restaurant