Supply Chain Management of
McDonalds
MADE BY: DARAIN ANAMUL HAQUE
SHREYASH DILIP PIMPARKAR
09-11-2015
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SHREYASH
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CONTENTS
• HISTORY
• VISION & STATEMENT
• PRODUCTS
• SUPPLY CHAIN
• COMPETITORS
• POSITIONING
• CONCLUSION
• REFERENCES
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McDonald’s Statement
Vision Statement
• To be the best and leading fast food
provider around the globe.
Mission Statement
McDonald's mission is to be our
customers' favorite place and way
to eat with inspired people who
delight each customer with
unmatched
• Quality
• Service
• Cleanliness
• Value
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McDonalds‘ Products
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McDonald’s Target Market
• McDonald’s wants to attract as many customers as it can. But the main
targets of the efforts by McDonald’s are following groups:
• Parent visit McDonald’s to give the children a treat.
• Children want to visit McDonald’s as it is a fun place to eat.
• A business customer visits McDonald’s during the day as service is quick,
the food tastes great and can be eaten in the car without affecting a busy
work schedule.
• Teenagers are attracted by the Saver Menu which is affordable, and the
internet access.
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Supply Chain Management
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McDonald’s E-Procurement
Major
Supplier
Small
Suppliers
E-MAC Digital
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McDonald’s E-Procurement
Place Orders Supply Received
E-MAC Digital
Global
Franchises
Suppliers Logistics
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Supply chain Integration
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McDonald’s Supply Chain
Management
• Supply chain is extensive and
complex.
• Efficient, safe and quality food at an
affordable price.
• Large number of direct suppliers –
companies that make or deliver
final products to their restaurants.
• Large number of indirect suppliers
– companies and farms that grow or
process the ingredients that are
eventually delivered to their direct
suppliers.
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Sesame seeds from
Ghaziabad, Uttar
Pradesh
Buns from
Shah
Bector &
sons khooli
Maharashtra,
Cremica
Ludhiana
Fresh Iceberg lettuce
From trikaya agriculture, telegacon
Maharashtra, Ooty farms,
ootacamandu
TN, meena agritech, Delhi
Cheedar Cheese from
Dynamix dairy industry
Maharashtra
Vegetable patty from
Kiran foods, taoja
Maharashtra
Special vegetarian
sauce from quaker
cremica, Punjab
Batter & Breading
from creminca EBL,
Ludhiana
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McDonald’s Logistics
INBOUND OPERATION OUTBOUND
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TRANSPORTATION
• The transportation of McDonald’s has
been completely outsourced and since
80% is in refrigerated truck movement.
• Multi-temperature and single
temperature trucks transport the fast
food swiftly to the McDonald’s
restaurants across the country.
• The company has both cold and dry
storage facilities with capability to store
products up to -22º C as well as delivery
trucks to transport products at
temperatures ranging from room
temperature to frozen state.
• The specially designed trucks
maintained the temperature in the
storage chamber throughout the journey.
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McDonald’s Logistics
COLD CHAIN LOGISTICS
• A cold chain is a temperature-controlled supply chain.
• It is used help extend and ensure the shelf life of products such as fresh
agricultural produce, processed food.
McDonalds’ entire network supply-chain consists of movement
of goods through a cold chain
An interesting and innovative feature of this cold chain is that the same truck
can carry products at different temperatures
ranging from:
• Frozen products at -18C to -25C
• Chilled products from 1C-4C
• Dry products at ambient temperatures
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McDonald’s Distribution
McDonalds Distribution systems McDonald uses three
types of distribution strategy;
• Franchising
• Licensing
• Joint ventures
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WHO ARE THE COMPETITORS
?
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• Subway
• Kentucky Fried Chicken (KFC)
• Mr. Burger
• Burger King
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Factors that Influence
Competition
Price Quality
Flavor Outlets
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POSITIONING:OVERVIEW
PRICE+
PRICE-
QUALITY+ QUALITY-
KFC
SUBWAY
BURGER KING
MAC-D
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McDonald’s Market Share
Market Share
McDonalds
KFC
Subway
Mr. Burger
Burger King
Others
25%
15%
10%
5%
15%
30%
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McDonald’s SWOT Analysis
• Political instability.
• Economical instability.
• Health conscious
customers.
• Innovative advertisements.
• Offer organic food line.
• Expand menu to cater all
individuals.
• Gain attention by sponsoring
adult or children programs.
• Lack of innovative
advertisement.
• High setup cost.
• Offers processed and inorganic
food line.
• Extensive and costly training
program.
• Brand Name.
• Research and Development.
• Loyal Customers.
• Diversified Culture.
Strength Weakness
ThreatsOpportunities
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CONCLUSION
• Because McDonald's has taken much of the hard work
out of stock management, Restaurant Managers are
able to spend more time focusing on delivering
McDonald's high standards of Quality, Service and
Cleanliness.
• The system also minimises waste. Efficient use of
materials means that society's resources are being
used well with very few waste products. This leads to a
reduction in costs
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REFERENCES
• http://www.mcdonalds.com/us/en/hom
e
• http://www.mcdonaldsindia.com
• http://wikipedia.org/wiki/Macdonald
• https://www.mottmac.com/
• https://www.mottmac.com/careers
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THANK YOU
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mac donalds final presentation by DARAIN AND SHREYASH