McDonalds

Distribution and Supply Chain Management of McDonald’s

St. Francis Institute of Management and Research

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Presented By:

Kaushal Mandaliya- 46

Pratish L Manchalwad- 60

Malcolm D’souza- 64

Rahul K Hanumante- 82

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Flow of the Presentation

• McDonald’s History

• McDonald’s In India

• Product Mix

• Co-Branding

• Who are the suppliers ?

• Supply chain of McDonald’s

• Technology used in McDonald’s

• Distribution Model

• Conclusion

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McDonald’s History

• It started as a drive-in-restaurant in the late 1940’s

• In 1966, McDonald’s was listed on the New York Stock Exchange.

• In June 1967, McDonald’s opened its first restaurant outside U.S in Canada

• In 1996, McDonald’s entered India in a joint venture.

• McDonald's is the world's largest chain of fast food restaurants, serving around 68 million customers daily in 120 countries across 35,000 outlets.

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McDonald’s in India• 1996- First restaurant opens in India, at Vasant vihar, New Delhi.

• McDonald’s India is a 50-50 JV partnership between McDonald’s Corporation(USA) and two Indian businessmen Amit Jatia (Hardcastle Restaurants Pvt Ltd, Mumbai) and Vikram Bakshi (Cannaught plaza restaurants Pvt Ltd, Delhi)

• Two separate operations in Northern & Sothern India.

• McDonald’s is present in 40 Indian cities with more than 400 restaurants and serves 650,000 customers daily.

• Approximately 75% of the menu available in McDonald’s in India is Indianized and specifically designed to Indian customers.

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Product Mix

Frozen Desert BeveragesNon Veg MenuVeg Menu

Co-Branding

• McDonald’s has major tie-ups with various companies as their co-branding strategy.

• Few are: -Coco-cola -Cadbury -Hotwheels

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Amrit Food - Dairy Mixes

• supplier of Dairy based products (Soft Serve Mix and Milk

Shake Mix)

• Amrit Food has also deployed an automatic bottle filling line

and superheated water spray sterilizer (Retort), for long shelf

life bottled milk drinks.

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Mrs. Bectors Food Specialities Ltd. – Liquid Condiments, Batter & Breading

• It runs two facilities dedicated to its operations in Delhi and

Mumbai with an investment of around INR 10 crores.

• Each facility has the capacity to produce over 250000 buns/

day.

• The liquid condiments, batter and breading units are located

in Phillaur, Punjab.

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Schreiber Dynamix Dairies Ltd.

• Schreiber Dynamix Dairies Ltd is a Joint Venture between

Schreiber Foods USA (51%) and K.M. Goenka group (49%).

• Located at Baramati, Maharashtra

• Full automatic international standard facility

• Capacity to convert milk in to butter, chees skimmed milk

powder, lactose. • Stringent quality control and measures.

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Vista Processed Foods – Chicken and Vegetable Range of Products

• Vista is McDonald's supplier for the chicken and vegetable and

pie/puff range of products in India.

• Located at Taloja, Maharashtra

• Its over an area of 2000 sq. Metres.

• Separate processing line for Chicken and vegetarian food

• Capacity to produce at temperature as low as -35 degree

Celsius to retain freshness

• Fresh product Division- Iceberg Lettuce 11

Mc Food Private Ltd- French Fries

• The right quality of Potato was not available In India

• McDonald’s needs Processed-grade Potatoes

• Mc food limited joined hands with farmers of Gujarat and

Maharashtra.

• Mc food limited is world largest French fries company In the

world- It has 55 processing plants on 4 continent

• Mc food limited Export more than 80 countries worldwide.

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Next time when you will have A McD’s Burger just remember that….

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Maharashtra

Supply Chain

Distribution CentreSuppliers

DC 1Noida

DC 2Mumbai

DC 3Bangalore

DC 4Kolkata 14

Supply Chain

Distribution Centre

Restaurant 1

Restaurant 2

Restaurant 3

Restaurant 4

Restaurant 5

Restaurant 6Beverage Partner

Coke

(Directly supplies all restaurants)

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Supply Chain

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Order Procurement• Pull Supply Chain system

Requisition Order

Restaurant to DC

DC to supplier Production

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Technology In SCM• Suppliers use SAP

• Distribution Centres use RAMCO Marshall ERP with Cobra software

• Mc Delivery

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Mc Delivery

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Distribution

• Matching supplier production with deliveries to meet schedules and restaurant needs

• 3 centralized distribution centers at Mumbai, delhi and Kolkata• Emphasis on economies of scale

-High storage volumes• QIP (Quality Inspection Program)• HACCP (Hazard Analysis Critical Control Point)

-Food safety standards emphasizing prevention of faults rather

than detection through inspection• No knife in restaurants

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Radhakrishna Foodland Ltd

• Distribution Centers and cold storages.• Completely dedicated distribution and supply chain• Specialized in providing

services -Procurement -Quality inspection -Storage -Inventory management -Deliveries -Data collections -Recording and reporting 21

Radhakrishna Foodland Ltd• Dry and cold storage facility

- Transportation trucks maintained at 22⁰ C - Implemented ERP software.

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Conclusion• McDonald’s Supply Chain is quite uniquely handled with least

number of employees on McDonald’s payroll. • With ever growing business of fast food McDonald’s has laid

down its systems efficiently and expanding at enormous speed.

• The control on outsourced entities is commendable.• The model can be replicated in other sectors as well to bring

out the higher efficiency in the business.

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Thank you

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