Raw material management involves procuring high quality materials, managing their use in production, and ensuring an uninterrupted flow. For McDonald's, key aspects include procurement from approved suppliers, warehousing raw materials in cold storage to maintain freshness, and transporting items via refrigerated vehicles. Maintaining an unbroken cold chain from source to stores is crucial to preserving quality and reducing waste. Issues like subpar materials, improper quantities, transport damages, or delays are addressed through quality checks, trained staff, and logistics improvements.

1. RAW MATERIAL MANAGEMENT

2. WHAT IS RAW MATERIAL
MANAGEMENT?
 A process that is considered part of the
overall supply chain management process ,
and focuses on the tasks of securing the
highest quality materials
 The evaluation and acquisition of the raw
materials, moves on through the use of
those materials in the manufacturing
process

3. APPROACH TO RAW MATERIALS
MANAGEMENT
• Materials planning
• Make or Buy decisions
• Purchasing
• Receiving and inspection
• Storage
• Inventory control
• Distribution of materials
• Transportation

4. OBJECTIVES OF MATERIAL
MANAGEMENT
• Is to minimize cost
• Procure and provide material at lowest cost
• Reducing investment tied up in inventories
• Purchase, receive , transport and store materials efficiently
and reduce related costs.
• Continuous supply of materials
• Cut down costs through simplification, standardization ,
value analysis and import substitution
• Minimizing procedural delays in procuring materials

5. MATERIALS- QUALITY AND
QUANTITY
• For the purchase of raw materials, 4 factors are
considered to be essential –
- Quality
- Quantity
- Price
- Delivery time DATE
• Optimizing these factors is the essence of the material
management.
RS.

6. FUNCTIONS OF PURCHASING
DEPARTMENT
• Ordering section places orders with the vendors.
• Service section follows the progress of the purchase
orders, its shipment by the vendor & its final receipt by
the company.
• Records-section maintains all records of quotations,
costs, purchases etc.
- Thus, purchasing involves control, coordination &
communication

7. Problems faced in Raw Material
Managment
• The quality of raw materials is not as per stds, The quality of
material used has direct relationship with the end use of the
product.
• Quantity is not the same as mentioned in the oder, function of
purchasing department is to buy the right quantity.
• Damages occurring during transportation.
• Raw Materials are not reaching on time.
• Inappropriate storage of raw materials.

8. RAW MATERIALS MANAGEMENT
OF MCDONALD

9. STEPS INVOLVED IN RAW MATERIALS
MANAGMENT IN MCDONALD
• Procurement
• Warehousing
• Transportation

10. LIST OF SUPPLIERS OF
MCDONALD
• Dynamic dairy industry
(cheese)
• Trikaya agriculture (ice
burg lettuce)
• Vista processed food pvt
ltd. (chicken and veg
range of products
• Radhakrishana food
land(distribution centre-
Delhi and Mumbai)
• Amrit food(long life UHT
milk and milk products
for frozen desserts)

11. 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

12. 2 IMPORTANT LOGISTICS DRIVE
IN MCDONALD
• WAREHOUSING: 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:
Refrigerated vans are
used here in this case.

13. CONCEPT OF COLD CHAIN
• 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.
• It was started by McDonalds in India.
• It took 6 years.
• Benefited to both consumers as well as farmers.
• Helped to maintain freshness and nutritional value of raw
materials.

14. CAUSE AND EFFECT DIAGRAM
SUPPLIERS
WAREHOUSING
UNIFORMITY COLD
STORAGE
TRANSPORTATION
LOGISTICS MACHINERY
MAINTENANCE
POOR QUALITY

15. SOLUTIONS
• Purchase department has to keep check over the quality
of raw materials
• Use of appropriate technology to check on the quantity
of raw materials
• Trained staff/labor should be appointed to avoid
damages, and to keep the track of the raw materials that
reaches the godown on time.