Topic: McDonald’s Restaurant Supply
Chain Management
1
WELCOME TO
OUR PRESENTATION
2
Group Members
Alive Jenny 45
Sharath 34
Shekhar 35
Sirajuddin 37
Sachith 03
 What is a Cold Chain?
 Explain how McDonalds managed the Components of the
Cold Chain?
 Critically Comment on the role played by the unique
Centralized Distribution System in McDonalds Supply
Chain?
 ‘McDonalds is one of the few Companies that has placed
substantial emphasis on effective and efficient Supply
Chain Management System as a means to leverage for
competitive advantage.’ In the light of this statement
analyse the steps taken by McDonalds to standardize its
Supply Chain in India 3
4
 Richard and Maurice McDonald originally started as a small
hamburger stand in Bernardino, California, in 1945.
 Re-opened in December 1948 as a self-service drive-in
restaurant.
 In 1950s Ray Kroc, a Multimixer Salesman, signed a
franchise agreement with Richard and Maurice McDonald
the name of McDonald Corporation at Illinois in 1955.
 In 1961, Ray purchased the ownership from McDonald
brothers.
 Today 34,000 McDonald's restaurants serving 69 million
customers each day in over 119 countries.
5
6
Introduction
Leading global food service retailer
32, 000 local restaurants, 60 million
people, more than 100 countries
Hamburgers, Chicken sandwich,
French fries, soft drinks, breakfast
items and desserts
Local deviation from the standard
menu
Abide by regional taboos
McDonalds in India
 Entered India in 1996 through a joint venture with
Amit Jatia (Hardcastle Restaurants Pvt. Ltd.) and
Vikram Bakshi (Connaught Plaza Restaurants Pvt.
Ltd.)
 160 restaurants in India
 Special menu with vegetarian selection, no beef
 Products using Indian spices - McVeggieburger,
McAloo Tikki burger
 Indian local suppliers provide McD with highest
quality freshest ingredients
 Radhakrishana group, a group engaged in food
business in the year 1993 was their 1st distribution
centre
7
8
9
10
11
12
13
Supply Chain
A supply chain is a system of
organizations, people, technology,
activities, information and resources
involved in moving product or service
from supplier to customer. Supply
chain activities transform natural
resources, raw materials and
components into a finished product
that is delivered to the end customer
14
McDonalds Europe Sustainable Supply
https://www.youtube.com/watch?v=OPrvgReNr
WI
15
16
 Source all its requirements from within India
 Developed local business that supplied high quality
products
 Works with 38 different local suppliers
 Trained local farmers to produce according to their
specification
 Worked with vendor to get the perfect cold chain in
place
 Distribution centres – Noida, Kalamboli, Bangalore,
Kolkata
 Cold chain was introduced by McD in India17
18
A cold chain is a temperature-controlled
supply chain. An unbroken cold chain is an
uninterrupted series of storage and
distribution activities which maintain a
given temperature range. It is used help
extend and ensure the shelf life of products
such as fresh agricultural produce,
processed foods
19
20
 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
 Frozen products at -18C to -25C
 Chilled products from 1C-4C
 Dry products at ambient temperatures
21
22
Procurement Warehousing Transportation Retailing
All the above activities takes place in temperature
controlled atmosphere
23
Improved
Customer
Experience
Minimum
Distribution
Costs
Less waste of
food
Maintenance
of quality of
the produce
Fewer
Deliveries
Required
Lower
Operation
Costs
Items
continually
in Stock
24
 McDonalds procures its products from local suppliers in
India which follow stringent quality standards such as
HACCP Principles.
 McDonalds brought the concept of cold chain in India
 McDonalds created a Central Distribution System for
better Supply Chain Management.
 McDonalds set up two separate production lines for
vegetable chicken and vegetable patties.
25
26

Mc donalds supply chain management

  • 1.
    Topic: McDonald’s RestaurantSupply Chain Management 1 WELCOME TO OUR PRESENTATION
  • 2.
    2 Group Members Alive Jenny45 Sharath 34 Shekhar 35 Sirajuddin 37 Sachith 03
  • 3.
     What isa Cold Chain?  Explain how McDonalds managed the Components of the Cold Chain?  Critically Comment on the role played by the unique Centralized Distribution System in McDonalds Supply Chain?  ‘McDonalds is one of the few Companies that has placed substantial emphasis on effective and efficient Supply Chain Management System as a means to leverage for competitive advantage.’ In the light of this statement analyse the steps taken by McDonalds to standardize its Supply Chain in India 3
  • 4.
  • 5.
     Richard andMaurice McDonald originally started as a small hamburger stand in Bernardino, California, in 1945.  Re-opened in December 1948 as a self-service drive-in restaurant.  In 1950s Ray Kroc, a Multimixer Salesman, signed a franchise agreement with Richard and Maurice McDonald the name of McDonald Corporation at Illinois in 1955.  In 1961, Ray purchased the ownership from McDonald brothers.  Today 34,000 McDonald's restaurants serving 69 million customers each day in over 119 countries. 5
  • 6.
    6 Introduction Leading global foodservice retailer 32, 000 local restaurants, 60 million people, more than 100 countries Hamburgers, Chicken sandwich, French fries, soft drinks, breakfast items and desserts Local deviation from the standard menu Abide by regional taboos
  • 7.
    McDonalds in India Entered India in 1996 through a joint venture with Amit Jatia (Hardcastle Restaurants Pvt. Ltd.) and Vikram Bakshi (Connaught Plaza Restaurants Pvt. Ltd.)  160 restaurants in India  Special menu with vegetarian selection, no beef  Products using Indian spices - McVeggieburger, McAloo Tikki burger  Indian local suppliers provide McD with highest quality freshest ingredients  Radhakrishana group, a group engaged in food business in the year 1993 was their 1st distribution centre 7
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
    Supply Chain A supplychain is a system of organizations, people, technology, activities, information and resources involved in moving product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer 14
  • 15.
    McDonalds Europe SustainableSupply https://www.youtube.com/watch?v=OPrvgReNr WI 15
  • 16.
  • 17.
     Source allits requirements from within India  Developed local business that supplied high quality products  Works with 38 different local suppliers  Trained local farmers to produce according to their specification  Worked with vendor to get the perfect cold chain in place  Distribution centres – Noida, Kalamboli, Bangalore, Kolkata  Cold chain was introduced by McD in India17
  • 18.
  • 19.
    A cold chainis a temperature-controlled supply chain. An unbroken cold chain is an uninterrupted series of storage and distribution activities which maintain a given temperature range. It is used help extend and ensure the shelf life of products such as fresh agricultural produce, processed foods 19
  • 20.
  • 21.
     McDonalds’ entirenetwork 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  Frozen products at -18C to -25C  Chilled products from 1C-4C  Dry products at ambient temperatures 21
  • 22.
    22 Procurement Warehousing TransportationRetailing All the above activities takes place in temperature controlled atmosphere
  • 23.
    23 Improved Customer Experience Minimum Distribution Costs Less waste of food Maintenance ofquality of the produce Fewer Deliveries Required Lower Operation Costs Items continually in Stock
  • 24.
  • 25.
     McDonalds procuresits products from local suppliers in India which follow stringent quality standards such as HACCP Principles.  McDonalds brought the concept of cold chain in India  McDonalds created a Central Distribution System for better Supply Chain Management.  McDonalds set up two separate production lines for vegetable chicken and vegetable patties. 25
  • 26.

Editor's Notes