1. Supply Chain of
C Donald’s
Shailendra Singh Rajput
MBA-AB 2011-13

2. Quick facts about C Donald’s:
• McDonald's was started by two brothers, Richard
and Maurice McDonald in California, US in the year 1937.
• Ray Kroc, distributor for milkshake machines,
expressed interest in the business, and he finalized a deal for
franchising with the McDonald brothers in 1954.
• In 1961, he bought out the McDonald brothers'
share for $2.7 million and changed the name of
the company to McDonald's Corporation.
In 1965, McDonald's went public…
Reference: mcdonalds.com

3. C Donald’s history India:
• Entered in India 1996.
• India is 50-50 JV partnership between C Donald’s
Corp. USA & two Indian businessman Amit Jatia
and Vikram Bakshi.
• Trained extensively with their Indian
management team in Indonesia and
USA before launch.
• The entire menu was changed.
• 90% of C Donald’s business is
owned and run by independent franchisees in
India.
Reference: mcdonaldsindia.com

4. Key business drivers & potential:
Pricing Food Innovation
Operation
Excellence
Brand Trust
Extended Hours

5. Distribution Centers:
38 supplier throughout
India & several
standalone restaurants
working with it for
various requirements
Reference: mcdonaldsindia.com

6. Where the food comes from: C Donald’s Supply Chain
Reference: logistics.bafree.net

7. Mc Donald’s India sources its ingredients from local suppliers
who are an integral part of the cold chain.
Refrigerated trucks with multi-temperature facility divided into 3 zones-
freezer,chiller, and ambient to ferry product demanding varying temperatures from
supplier location to the distribution centre.
Reference: National Retail Federation
-Case Study

8. Distribution centre is also divided into multi-temperature zones
, as are the trucks for storing products. With freezer at 0 degree F
to 33 degree F , chiller at 33 degree F to 40 degree F, and room
temperature.
Reference: National Retail Federation
-Case Study

9. Restaurants have in built cold storage units subdivided into
same aforesaid zones –freezer, chiller ,and ambient. National Retail Federation
Reference:
-Case Study

10. 38 suppliers Food /nonfood:
across Frozen , chilled &
the country any dry goods
Procurement logistic Warehousing & packaging
Food /nonfood:
Frozen , chilled &
any dry goods
Distribution logistics
#
Consumer/outlets
C Donald’s Supply Chain (160 restaurants across
the country)

11. Supply of ingredients:
Sesame seeds Special vegetarian sauce
Ghaziabad, UP (Eggless)
Quaker Cremica,
Phillaur,Punjab
Buns
Shah & sons, Batter & Breading
Khopoli ,MH & Cremica Industries
Cremica Industries, , Ludhiana ,Punjab
Noida
Iceberg lettuce
Trikaya Agriculture , Talegaon MH
Meena Agritech ,Delhi Vegetable Patty
Ferrocoa Farm, Dehradoon (Made from fresh Peas,
Carrots,Green beans,
Potatoes and Rice)
Kiltran foods, Taloja MH
Reference: mcdonaldsindia.com

12. “The basic purpose of a supply chain
is to coordinate the flow of materials,
services, and information along the
elements of the supply chain to
Ray Kroc
maximize customer value.”
And this is what we did….

13. LESSONS:
• Look before you leap.
(Mc Donalds did an extensive research before venturing into this
nation for more than 4 years and put in 450 crores plus during those
times, to develop its supply chain)
• In Rome , do as Romans do!
Mc Donalds customized its products to Indian taste-buds, also to connect
to the public, avoided pork and beef products. In addition the processing
lines for vegetable and non-vegetable products are kept separate.
• Principle of mutual need: If one can assure one’s
vendor that both are interdependent on each other,
the trust must carry the relationship. In other words-“You must allow
market forces and not binding agreements to determine just who the
constituents of your supply chain will be.

14. Thank you…!!!