1) McDonald's operates over 32,000 restaurants in more than 100 countries serving over 60 million customers daily. It sources all its requirements locally in India from over 38 suppliers. 2) McDonald's supply chain in India is highly integrated and relies on a cold chain to transport and store many temperature controlled products. It works closely with local suppliers and farmers to source high quality ingredients. 3) Key partners in McDonald's cold chain include dairy, vegetable, chicken, and dessert suppliers who use specialized equipment and facilities to harvest, process, package, and transport foods while maintaining strict temperature controls to ensure food safety and quality.

1. Mc DONALD’S
SUPPLY CHAIN
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2. AGENDA
• Introduction
• History of Mc Donald’s
• Mc Donald’s in India
• Mc Donald’s Supply chain
▫ Supply Chain Challenges
▫ Supply Chain Strategy
▫ Cold Chain
▫ Validation of cold chain
▫ Cold chain partners
▫ Logistics
▫ Result of Supply chain Integration
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3. 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
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4. HISTORY
• 1940 – Began as a restaurant opened by siblings
Dick and Mac McDonald in California
• 1948 – Introduction of “Speedy Service System”
• 1955 - Opening of a franchised restaurant by Ray
Kroc
• Post 1955 – Kroc purchased Mc brothers equity
in the company and led to world wide expansion
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5. McDonald’s IN INDIA
• Entered India in 1996 through a joint venture
with Hardcastle Restaurants Pvt. Ltd. and
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
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6. McDonald’s– FOUR PILLARS OF SUCCESS
Limited Menu
Fresh Food
Fast Service
Affordable Price
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7. Mc Donald’s SUPPLY CHAIN IN INDIA
• Source all its requirements from within India
• Developed local business
• 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 centers – Noida, Kalamboli, Bangalore,
Kolkata
• Cold chain – Unique concept of McD supply chain in
India
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8. • Full Supply Chain responsibility
• Multi Temp. Products - Over 65 % temperature
controlled
• Stores as far as 500 – 1000 kms
• Drops per month - Over 1000 - Movement mainly by
road
• Regular movement of perishables by air
• No margin for error – Operations critical client
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Mc Donald’s SUPPLY CHAIN
CHALLENGES

9. Mc Donald’s SUPPLY CHAIN CHALLENGES
(cont.)
• No Stock Outs at store
• On time delivery record – above 97 %
• Clean delivery record – above 99 %
• Unfailing inbound supply chain
• Bull whip effect
• Cannibalization
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10. SUPPLY CHAIN STRATEGY
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11. SUPPLY CHAIN SERVICES FOR McDONALD‘S
RESTAURANTS

12. COLD CHAIN – LIFELINE OF FAST FOOD BUSINESS
• Temperature controlled supply chain
• Series of storage and distribution activities
which maintain a given temperature range
• Extend and ensure the shelf life of food products
Locked in pre-
cooling room to
remove field heat
after harvesting
Transportation
to distribution
centers in
refrigerated vans
McDonald’s
store products to
be used on daily
basis
2o c 1 to 4 o c -18 to 4 o c
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13. VALIDATION OF COLD CHAIN
Component
Qualification
• Qualification
check on
packaging
components
Operational
Qualification
• To demonstrate
that the process
performs at the
operational
extremes
Performance
Qualification
• To demonstrate
that what
happens in the
real world is
within the limits
of what was
demonstrated in
the Operational
Qualification
limits
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14. COLD CHAIN PARTNERS
BEHIND THE Big Mac
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Source: http://www.rediff.com/business/1999/apr/29mac5.jpg

15. COLD CHAIN PARTNERS
1. Dynamic Dairy Industries - Supplier of Cheese
▫ Baramati, Maharashtra
▫ Immense benefit to farmers by setting up a network of milk
collection centres equipped with bulk coolers
▫ From farm two degrees Celsius in 90 minutes
▫ Fully automatic international standard processing facility
▫ Capability to convert milk into cheese, butter/ghee, skimmed
milk powder, lactose, casein & whey protein and humanized
baby food
▫ Stringent quality control measures and continuous Research
& Development
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16. COLD CHAIN PARTNERS (Cont.)
2. Trikaya Agriculture-Supplier of Iceberg Lettuce
▫ Talegaon, Maharashtra
▫ Grow lettuce all year round with the help of experts from Mc
Donalds
▫ A specialized nursery with a team of agricultural experts
▫ Vegetables are moved into the pre-cooling room within half
an hour of harvesting.
▫ The pre-cooling room ensures rapid vacuum cooling to 2º C
within 90 minutes.
▫ The pack house, post-cooling and cold room are located at the
farms itself, ensuring no delay between harvesting, pre-
cooling, packaging and cold storage
▫ Refrigerated truck for transportation.
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17. COLD CHAIN PARTNERS (Cont.)
3. Vista Processed Foods Pvt. Ltd. -Supplier of Chicken and
Vegetable range of products including Fruit Pies
▫ Taloja, Maharashtra.
▫ Produces a range of frozen chicken and vegetable foods
▫ The technology includes hi-tech refrigeration plants for
manufacture of frozen food at temperatures as low as - 35° c.
▫ Cultural sensitivity: Vegetable & chicken manufactured at
different processing lines separated by a shower (washing)
area. Utmost care to ensure no mixing up.
▫ R&D facility for innovation in taste, nutritional value and
convenience
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18. COLD CHAIN PARTNERS (Cont.)
4. Radhakrishna Foodland -Distribution centers for Delhi
and Mumbai
▫ Thane, Maharashtra
▫ Handles large volumes
▫ Services include procurement, quality inspection, storage,
inventory management, deliveries, data collection, recording and
reporting
▫ Dry and cold storage facility to store and transport perishable
products at temperatures upto -22 Degree Cel.
▫ Effective process control for minimum distribution cost
▫ Variety of items coming from across India, stored in rooms with
different temperature zones and are finally dispatched to the
McDonald's restaurants on the basis of their requirements
▫ Very vital role in maintaining the integrity of the products
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19. COLD CHAIN PARTNERS (Cont.)
5. Amrit Food- Supplier of long life UHT Milk and Milk
Products for Frozen Desserts
▫ Ghaziabad, Uttar Pradesh
▫ ISO 9000 company
▫ Manufacture widely popular brands – Gagan Milk and
Nandan Ghee
▫ State-of-the-art fully automatic machinery requiring no
human contact with product, for total hygiene.
▫ Installed capacity of 6000 ltrs/hr for producing homogenized
UHT (Ultra High Temperature) processed milk and milk
products.
▫ Strict quality control supported by a fully equipped quality
control laboratory.
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20. LOGISTICS
• 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)
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21. SUPPLY CHAIN INTEGRATION
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22.  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
RESULT OF SUPPLY CHAIN INTEGRATION

23. REFRENCES
• http://www.icmrindia.org/free%20resources/casestudie
s/McDonald%20food%20chain-7.htm
• http://www.articlesbase.com/marketing-
articles/mcdonalds-india-supply-chain-729402.html
• www.expresshospitality.com/20070315/management06
.shtml
• www.mcdonaldsindia.com
• www.nrf.com/Attachments.asp?id=9504
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