McDonald's restaurant supply chain management presentation discusses McDonald's supply chain in India. [1] McDonald's sources all its requirements from within India from 38 local suppliers. [2] McDonald's introduced cold chain distribution in India to maintain product quality and shelf life, with distribution centers in Noida, Kalamboli, Bangalore and Kolkata. [3] McDonald's centralized distribution system and strict quality standards have helped it leverage its supply chain for competitive advantage in India.
3. 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
5. 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. 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
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
14. 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
17. 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
19. 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
21. 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
25. 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