Mc donalds supply chain strategies

2,342 views

Published on

mc donalds supply chain

Published in: Business
0 Comments
5 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,342
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
222
Comments
0
Likes
5
Embeds 0
No embeds

No notes for slide

Mc donalds supply chain strategies

  1. 1. •AKHILA •ANOOP C.R •ANTONY JOSEPH.T
  2. 2. Controlled Temperatures Procurement Warehousing Transportation Retailing UNIQUE SUPPLY CHAIN AT MC DONALD’S
  3. 3. SUPPLIERS OF MC DONALDS INDIA
  4. 4. COLD CHAIN PARTNERS
  5. 5.  Produces over 2,000 pounds of cheese per month.  Helped set up 15 bulk cooling centers throughout the district from which it purchases milk.  Checks fat content. Detects minute traces of pesticides or antibiotics administered to cows.  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.
  6. 6.  McDonald's has provided assistance in the selection of high quality seeds.  Exposed the farms to advanced drip- irrigation technology.  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.
  7. 7.  Technical and financial support extended by OSI Industries Inc., USA and McDonald’s India Private Limited :  Hi-tech refrigeration plants for manufacturing frozen food at temperatures as low as - 35° C.  The latest vegetable mixers and blenders are in operation.  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.
  8. 8.  Monitors food as the ingredients move from farms to processing plants to the restaurant  Implements McDonald's Quality Inspection Program (QIP), which carries out quality checks at over twenty different points in the Cold Chain system.
  9. 9.  Specializes in handling large volumes of products  Offers wide range of services: quality inspection, storage, inventory management, deliveries, data collection, recording and reporting.  Effective process control for minimum distribution cost.  A one-stop shop for all distribution management services.  Dry and cold storage facility to store and transport perishable products.
  10. 10.  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
  11. 11.  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
  12. 12. Consumer/outlets 38 suppliers across the country Procurement Food/nonfood: Frozen , chilled & any dry goods Warehousing & packaging Distribution logistics C Donald’s Supply Chain (160 restaurants across the country)
  13. 13. Limited Menu Fresh Food Fast Service Affordable Price
  14. 14. Handled by AFL Logistics Ltd. • ~100 sales items in the restaurant • ~400 SKUs in the warehouse (Hubs: up to 1,500) • ~200 restaurants per DC (~180 DCs globally) • Delivery frequency: ~3/wk, higher in urban areas • 2-3 stops per route • Exclusive distributors (3PL) • Freight consolidation (via freight forwarders) • Long term partnerships with service providers, risk sharing • Strong quality focus (Cold Chain, HACCP, QIP)
  15. 15.  Significant business benefits to both the customer and the supply chain  Enablers  One stop shopping concept - Central file management  Inventory management - Restaurant simplification  Synchronizing the perishable Supply Chain  Demand forecasting  Promotional + Continuous Supply  Supplier and DC level  Supply Planning  Restaurant and DC level  Visibility and Collaboration across the chain
  16. 16.  TRANSACTION PROCESSING SYSTEM (TPS)  “POINT OF SALE” SYSTEM  DECISION SUPPORT SYSTEM (DSS)  “MADE FOR YOU” SYSTEM
  17. 17. sophisticated burger-making technology (including a record- breaking bun toaster) McDonald's is able to make food fast enough to wait until it's been ordered. Reduction in wastage
  18. 18. Various suppliers supplies the materials Products delivered to distribution centers Products delivered to restaurant Customer order at restaurant Push stops here pull starts here

×