1. INDIAN INSTITUTE OF
FOREIGN TRADE
McDonalds:
Supply Chain Management
INDIAN INSTITUTE OF FOREIGN TRADE
NEW DELHI
Submitted To:
Prof.Nitin Seth
Submitted By:
Hitesh Bharti
EPGDIM-2012-14

2. ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the
successfulcompletion of any work would be
incomplete unless we mentionsome of the persons,
as an expression of gratitude, which made
itpossible,
whose
constant
guidance
and
encouragement served as a backon light and
crowned the efforts and success. We take this
opportunity of expressing our gratitude toProf.Nitin
Seth, who has always been of immense help during
the making of this project, which helped us a great
deal in enhancing our knowledgeby virtue of
practical application. Her guidance and support
carried us all through the preparation of this project.
We regret any inadvertent omissions.

3. TABLE OF CONTENTS
Introduction…………………………………………………….01
It starts with……………………………………………………01
Some important facts…………………………………………02
Indian markets…………………………………………………02
Supply chain is………………………………………………...03
Supply chain in McDonalds India……………………………04
McDonalds distribution centre……………………………….04
Concepts of cold chain………………………………………..05
Steps involved in cold chain concept………………………..06
List of suppliers and how cold chain concept works……….07
Different items are sourced from………………………….…09
Three logistical drivers………………………………………..10
Three cross functional drivers………………………………..10
Pull/push process………………………………………………11
Supply chain process………………………………………….12
In Jaipur we are at...…………………………………………...13

4. INTRODUCTION
McDonalds Is …….
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 with
headquarters in Oakbrook’s, Illinois, US. It serves burgers and other fast
food customized to local tastes. Its philosophy has been 'one world, one
burger;' which meant that the burger must be consistent in terms of cost
and quality. To meet such high standards, it was essential to have an
excellent supply chain management system. In India, McDonald's had a
very well-orchestrated supply chain, called the 'Cold Chain'.
IT STARTS WITH…….
In 1954, Ray Kroc, 52, distributor of milkshake maker- multi-mixer,
went to see McDonald’s brother’s hamburger stall in California.
With an opportunity, he thought to open several of such restaurants
so as to sell his multi-mixer milk shake machine.

5. SOME IMPORTANT FACTS……
In year 2004, McDonald’s was the largest marketer of fast food in the
world.
31000+ restaurants.
47 million customers served daily.
1999- 8thmost valuable brand.
2000- Ranked among top 100 firms in the world.
INDIAN MARKET………
It’s a huge sub-continent.
India is 4 times more populated than the US.
India has 300 million strong middle class people.
India is one of the largest economy.
Incorporated in 1993, MIPL is McDonalds India’s wholly owned
subsidiary.
In India, McDonalds open its first restaurant in 1996 at VasantVihar,
South Delhi.
50:50 joint venture with(1)
(2)
NorthConnaught
plaza
restaurants(
owned
Mr.VikramBakshi) and
West- Hardcastle restaurants (owned by Mr. Amit Jatia).
by

6. 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 materialsand components into a finished product
that is delivered to the end customer.
Internal Supply Chain
SUPPLIERS
Purchasing
Production
Distribution
CUSTOMERS
Supply Chain Management involves the planning and management of all
activities involved in sourcing and procurement, conversion, and all
logistics management activities. Importantly, it also includes coordination
and collaboration with channel partners, which can be suppliers,
intermediaries, and customers. Supply chain management integrates
supply and demand management within and across companies. Supply
Chain Management is an integrating function with primary responsibility
for linking major business functions and business processes within and
across companies into a cohesive and high-performing business model. It
includes all of the logistics management activities noted above, as well as
manufacturing operations, and it drives coordination of processes and
activities with and across marketing, sales, product design, and finance
and information technology.”

7. The primary objective of management is to fulfil customer demands
through the most efficient use of resources, including
distributioncapacity,inventoryand labour.
SUPPLY CHAIN IN McDonald’s INDIA…….
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. The importance of supply
chain can be understood by the fact that before setting up their first
restaurant in India, McDonald’s infused around Rs. 400 crores in the
supply and delivery chain. McDonald’s India source all its products and its
raw materials from India only. McDonald’s develops local businesses that
supply them the products and that too of highest standards. Today
McDonald’s have around 38 suppliers and that too on the long term
basis.
McDonald’s DISTRIBUTION CENTRES……
Noida and Kalamboli(Mumbai)……………..1996
Bengaluru……………………………………..2004
Kolkata…………………………………………2007

8. 1stdistribution agreement was done by Radhakrishana group, a group
engaged in food business in the year 1993 and it was their 1st distribution
centre.
CONCEPT OF COLD CHAIN ………………
A Cold Chain is a temperature-controlled supply chain. An unbroken
cold chain isan uninterrupted series of storage and distribution activities
which maintain agiven temperature range. It is used help extend and
ensure theshelf lifeof products such as fresh agricultural produce,
processed foods, photographic film,chemicals andpharmaceutical
drugs.This concept of cold chain in food industry and that too on such a
large scale was started by McDonald’s only. This concept was unique in
India and to start this concept, it took around 6 years. It benefited both
farmers as well as the consumers, as they are getting the fresh,best
quality and great value food. With this concept McDonald’s cut down
itswastage and able to maintain its freshness and nutritional value of
raw material.
STEPS INVOLVED IN COLD CHAIN CONCEPT…….
Procurement
Warehousing
Transportation
Retailing
All the above activities took place in temperature controlled atmosphere.

9. Picture of a temperature controlled truck.
STEPS INVOLVED INCOLD CHAINCONCEPT……
McDonald's finding the factor of cold room being vital ensured thateven
before vegetables from farmsentered the refrigerated zones,they were
locked in a pre-coolingroom to remove field heat. Vegetables were placed
in the pre-cooling room within half an hour of harvesting where rapid
cooling decreased the field temperature of Vegetables to 2ºC within 90
minutes. Then a large cold room (a refrigerated van)was used for
transportation
to
the
distribution
centres.
In
the
van
thetemperature and relative humidity of crop was maintained at 14ºC and 95per cent, respectively and the flavours and freshness are
lockedAt the suppliers' level, care was taken to guard against any
possiblecontamination or interruption in the cold chain that can break the
link and have a detrimental effect on the quality of our product. The
iceberg lettuce from Ooty, mutton patties from Hyderabad and sesame
seed buns from Punjab were all delivered to Radhakrishna Foodland
Private Limited (RFPL) distribution centre (cold storage) in its refrigerated
vans. RFPL stored theproducts in controlled conditions in Mumbai and
New Delhi and supplied them toMcDonald's outlets on a daily basis. By
transporting the semi-finished products at a particular temperature, the

10. cold chain ensured freshness and adequate moisture content of the food.
The specially designed trucks maintained the temperature in the storage
chamber throughout the journey. Drivers were instructed specifically not
to switch off the chilling system to save electricity, even in the event of
traffic jam.
LIST OF SUPPLIERS AND THE DISCRIPTION SHOWING
HOWCOLD CHIN CONCEPT WORKS AND CONTRIBUTE
TOWARDSEFFICIENCY…….
Dynamix dairy industry (cheese)
Trikaya agriculture (iceburg lettuce)
Vista processed food pvt ltd. (chicken and veg range of products)
Radhakishana food land(distribution centre- Delhi and Mumbai)
Amrit food(long life UHT milk and milk products for frozen desserts)

11. DYNAMIX DAIRY INDUSTRY (SUPPLYING CHEESE)
Firm from Baramati, Maharashtra
Milk collection centres with bulk coolers
International standard and processing facilities
Stringent quality control measures
All activities from procurement of milk to changing it into cheese and then
to serve that cheese in the restaurant is all under temperature control
atmosphere
TRIKAYA AGRICULTURE (SUPPLYING ICEBURG LETTUCE)
Advanced agricultural practices helps them to grow speciality crops
like lettuce and herbs.

12. Pre cooling room and large cold room for post-harvest.
Refrigerated transportation.
VISTA PROCESSED FOOD PVT. LTD. (FOR SUPPLYING
FROZENCHICKEN AND VEG PRODUCTS)
For chicken, temperature maintained is -35 degrees Celsius.
Refrigerated transportation.
RADHA KRISHNA FOODLAND (DISTRIBUTION CENTRE)
Specialized in handling large volumes.
Activities involved are procurement, quality inspection, storage,
inventory management, deliveries, data collection, recording and
reporting.
One stop shop for all distribution management services.
Both dry and cold storage facility.
AMRIT FOODS
An ISO 9000 firm
Supplies long life UHT milk/ milk products for desserts.
DIFFERENT
ITEMS
ARE
FROM DIFEERENTGEOGRAPHY IN INDIA……..
SOURCED

13. BUNS-Shah Bector& Sons, Maharashtra and Cermica, Ludhiyana
BATTER & BREADING- Cremica, Ludhiyana
VEGETABLE PATTY- Kitran Foods, Taloja, Maharashtra
CHEDDAR CHEESE- Dynamix Dairy, Baramati, Maharashtra
SEASAME SEED- Gaziabad, UP
SPL VEG EGGLESS SAUCE- Quaker, Cermica, Ludhiyana
THREE LOGISTICAL DRIVERS…….
McDonalds: Supply Chain Management

14. 1. 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.
2. Transportation- it is the process where the inventory is moving from
place to place. Refrigerated vans are used here in this case.
3. Inventory- it includes raw materials, work in progress, and
finished goods within a supply chain.
THREE CROSS-FUNCTIONAL DRIVERS……
1. Sourcing- who will perform which activity (production, storage,
transportation, and distribution) in a supply chain. This activity was
taken care by McDonald’s corporation.
2. Information- it includes data and analysis related to facilities,
inventory, transportation, cost, prices and customers in the whole
supply chain. This activity was done by Radhakrishana food land
that acts as their distribution centre.
3. Pricing- how much a firm could charge for a particular goods and
services that it makes available in the supply chain. Here it was
done by the McDonald’s only.
PULL/PUSH PROCESS
Pull processes are initiated by a customer order while the push processes are initiated
by the anticipation of customer order. McDonald’s 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. One important question can be asked to what level that push can be
applied. The products will be pushed to the restaurants where the customers
automatically demand that product and hence a pull is created.
Various suppliers supply the material

15. Product deliver to distribution center
Product deliver to restaurant
Push stops Pull
starts here
Customer order at restaurant
Fig. showing the boundry of pull and push, push last till the product reaches the restaurant and pull
starts when a customer orders the product.
SUPPLY CHAIN PROCESS CYCLE……..
The processes in the supply chain are divided into a series of cycles, each performed at the interface
between 2 successive stages of supply chain
CUSTOMERS
CUSTOMER ORDER CYCLE

16. IN Jaipur WE ARE AT……..
MI Road
Gaurav Tower
Queens Road
22 GodamPuliya
21 IN UTTAR PRADESH

17. Noida (5),Ghaziabad (4),Mathura (1) (Highway and DriveThru),
Kanpur (2),Meerut (2),Lucknow (3),Agra (1),Allahabad (1),
Varanasi (2)
79 IN NORTH AND EAST
33 in Delhi
22 in Uttar Pradesh
11 in Haryana - Faridabad (3), Manesar (1) (Highway and Drive Thru),Gurgaon (5), Karnal (1) (Highway andDrive - Thru), Panipat (1)
7 in Punjab - Chandigarh (2), Ludhiana(2), Doraha (1) (Highway and
Drive -Thru), Jalandhar (1), Patarsi (1)(Highway and Drive - Thru)
1 in Uttaranchal - Dehradun (1)
1 in West Bengal – Kolkata (1)
1 in Himachal Pradesh- Jabli (1)
53 IN WEST AND SOUTH
32 in Maharashtra – Mumbai (23), Pune (8), Nasik (1)
7 in Gujarat – Ahmedabad (4), Vadodara (2), Surat (1)
7 in Karnataka – Bangalore (7)
4 in Andhra Pradesh – Hyderabad (4)
3 in Madhya Pradesh– Indore (3)
Resources:
http://www.mcdonaldsindia.com/ ,en.wikipedia.org