McDonald\'s Supply Chain Analysis

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Towson University, MKTG 355 (Retail Management), Fall 2009, McDonald\'s Supply Chain Analysis

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McDonald\'s Supply Chain Analysis

  1. 1. Ellen Underwood MKTG 355.001
  2. 2. <ul><li>McDonald’s investment in India has changed the entire Indian fast food industry: </li></ul><ul><li>It has raised the standards of food production and increased local and international business for Indian companies. </li></ul>
  3. 3. <ul><li>Discuss McDonald’s unique supply chain in India. </li></ul><ul><li>Discuss the five major Indian suppliers who build up supply chain. </li></ul><ul><li>Discuss how the supply chain works and contributes to the efficiency of McDonald’s </li></ul><ul><li>Understand how efficiency has contributed to McDonald’s Global Success. </li></ul>
  4. 5. Development of the “Cold Chain”
  5. 6. <ul><li>Produces over 2,000 pounds of cheese per month. </li></ul><ul><li>Helped set up 15 bulk cooling centers throughout the district from which it purchases milk. </li></ul><ul><li>Checks fat content. Detects minute traces of pesticides or antibiotics administered to cows. </li></ul><ul><li>This instant rejection forces farmers to follow the best practices in terms of raising livestock, using proper feeds, and cutting down on the use of pesticides and animal medicines. </li></ul>
  6. 7. <ul><li>  McDonald's has provided assistance in the selection of high quality seeds. </li></ul><ul><li>Exposed the farms to advanced drip-irrigation technology. </li></ul><ul><li>Helped develop a refrigerated transportation system allowing a small business in India to provide fresh, high-quality lettuce to McDonald's urban restaurant locations thousands of miles away.  </li></ul>
  7. 8. <ul><li>Technical and financial support extended by OSI Industries Inc., USA and McDonald’s India Private Limited : </li></ul><ul><li>Hi-tech refrigeration plants for manufacturing frozen food at temperatures as low as - 35° C.  </li></ul><ul><li>  The latest vegetable mixers and blenders are in operation. </li></ul><ul><li>Keeping cultural sensitivities in mind, both processing lines are absolutely segregated to ensure that the vegetable products do not mix with the non-vegetarian products.  </li></ul>
  8. 9. <ul><li>Specializes in handling large volumes of products </li></ul><ul><li>Offers wide range of services: quality inspection, storage, inventory management, deliveries, data collection, recording and reporting. </li></ul><ul><li>Effective process control for minimum distribution cost. </li></ul><ul><li>A one-stop shop for all distribution management services. </li></ul><ul><li>Dry and cold storage facility to store and transport perishable products . </li></ul>  (Distribution Centers for Delhi and Mumbai)
  9. 10. <ul><li>Monitors food as the ingredients move from farms to processing plants to the restaurant </li></ul><ul><li>Implements McDonald's Quality Inspection Program (QIP), which carries out quality checks at over twenty different points in the Cold Chain system. </li></ul>Amrit Food (Supplier of long life UHT Milk and Milk Products for Frozen Desserts)
  10. 11. It sourced all its required products from within the country. 
  11. 12. http://www.youtube.com/watch?v=bTMJRAwTJ2M

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