Distribution supply chain management of McDonalds

Presented bySHRIRAM SARDA (70)

Mcdonalds History
McDonald's was started as a drive-in restaurant by two brothers, Richard and Maurice McDonald in California, US in the year 1937. The business, which was generating $200,000 per annum in the 1940s, got a further boost with the emergence of a revolutionary concept called 'self-service.' The brothers used assembly line procedures in their kitchen for mass production. Prices were kept low. Speed, service and cleanliness became the critical success factors of the business. By mid-1950s, the restaurant's revenues had reached $350,000.

McDonalds History
At this point, Ray Kroc (Kroc), distributor for milkshake machines.Expressed interest in the business, and he finalized a deal with the McDonald brothers in 1954. He established a franchising company, the McDonald System Inc. and appointed franchisees. In 1961, he bought out the McDonald brothers' share for $2.7 million and changed the name of the company to McDonald's Corporation. In 1965, McDonald's went public... Currently McDonald's operates in 121 countries & having more than 30000 restarunt and serving 53 Mn customers everyday

History in India
1996 the first McDonalds restaurant opened on Oct. 13, at Basant Lok, Vasant Vihar, New Delhi. It was also the first restaurant in the world not serving beef on its menu 1997the first Drive Thru restaurant at Noida 1999the first Mall location restaurant at Ansal Plaza New Delhi 2000the first highway restaurant at Mathura 2001the first thematic restaurant at Connaught Place 2002the first restaurant in a food court at 3Cs, Lajpat Nagar and the first restaurant at the Delhi Metro Station at Inter State Bus Terminus

Products
Vegetarian Menu

Non-Veg Menu

McCafe

Desserts

Organizational Chart

McDonalds SUPPLY CHAIN

McDonalds Supply chain is based on the three-legged stool concept : Company Franchisees Suppliers

Logistics
100 sales items in the restaurant 400 SKUs in the warehouse Delivery frequency: ~3/wk, higher in urban areas 2-3 stops per route Exclusive distributors Strong quality focus (QIP)

McDonalds took 4 years and around Rs 450 crores to set up the food supply chain even before opening its 1st restaurant. McD India has pioneered the cold chain management system. They provided assistance in the
Selection of high quality seeds Drip-irrigation technology Refrigerated transportation system

SUPPLIERS
1.

Dynamix Dairy Industries (Supplier of Cheese)

Fully automatic international standard processing facility. Network of milk collection centres equipped with bulk coolers. Dedicated quality program. Dedicated R&D centre

2. Trikaya Agriculture (Supplier of Iceberg Lettuce)

Specialized nursery with a team of agricultural experts Drip and sprinkler irrigation in raised farm beds with fertilizer mixing plant. The pack house, pre-cooling and cold room are located at the farms itself to ensure no delay.

3) Vista Processed Foods Pvt. Ltd. (Supplier of Chicken and Vegetable products)

World class infrastructure and support services. Separate processing lines for chicken and vegetable foods. Hi-tech refrigeration plants for manufacture of frozen

food at temperatures as low as -35C.

OUTSOURCING THE INGREDIENTS

ITEM Cheese PLACE Dynamix Dairy Industries Ltd., Pune

Dehydrated onions
Iceberg lettuce Chicken patty Veg. Patty, Veg. Nuggets, Pies

Jain Foods, Jalgaon

Trikaya Agriculture, Pune Vista Foods, Taloja Kitran Foods, Taloja

Chicken (dressed)
Buns Eggless mayonnaise Sesame seeds

Riverdale, Talegaon
Cremica Industries, Phillaur Quaker Cremica Pvt. Ltd., Phillaur Ghaziabad

Fish fillet patties

Vegetable for the patties Mutton and Mutton Patties

Amalgam Foods Ltd., Kochi.

Finns Frozen Foods, Nasik and Jain Foods, Jalgaon Al Kabeer, Hyderabad

DISTRIBUTION
Radhakrishna Foodland Ltd.

Specialized in providing services

procurement quality inspection storage inventory management deliveries data collection recording and reporting

Dry and cold storage facility Transportation trucks maintained at 22 C Implemented ERP software.

Supply Chain
Suppliers Mfg Dist. Retai Customer

Material Flow

SUPPLY CHAIN INTEGRATION

 Amrit Foods: Amrit Foods, a division of Amrit Banaspati, has been associated with McDonald's India as a supplier of Dairy Mixes, Soft Serve Mix and Milk Shake Mix for over a decade now. Cremica Industries: Cremica Industries was started in 1980 as small ice-cream unit run by Mrs Bector out of her backyard in Ludhiana. However after its initial success Cremica added buns and biscuits to its product line and in 1996 McDonald's selected Cremica to be its supplier for buns, liquid condiments, batter and breading in collaboration with its international partners. Dynamix Dairies: McDonald's India has approved Dynamix Dairies, Baramati (Maharashtra) for supply of cheese to its restaurants. Dynamix has a modern automated plant that is fully computer controlled. Trikaya Agriculture: Trikaya Agriculture is McDonald's supplier of fresh iceberg lettuce. The farms at Talegaon, Maharashtra produce the crop throughout the year.