An efficient supply chain can lead to strategic competitive advantage for McDonald's in the following ways: 1. Lower costs - Through scale, optimized logistics and outsourcing, McDonald's achieves lower procurement and distribution costs compared to competitors. This allows it to offer lower prices. 2. Faster innovation - McDonald's extensive supply chain network and collaboration with suppliers allows it to quickly test, refine and roll out new products and processes. This helps it innovate faster than competitors. 3. Superior customer experience - By ensuring consistent availability of products across its vast network, McDonald's is able to provide a standardized customer experience. Tight supply chain management also helps minimize disruptions and improve order accuracy. 4. B

1. Indian fast food industry
• India is blessed with one of the fastest growing
fast food market of the world
• The Indian fast food market is growing at the
rate of 30-35% per annum
• Foreign fast food chains are aggressively
increasing their presence in India for e.g..
-Dominos has planed to open 60-65
outlets every year till 2010-2012
-yum brand inc. planning to open 1000
fast food outlets by 2015

2. Major players

3. About McDonald’s
Formed in 1954,mcd brand is the leading
global food service retailer with more than
30,000 local restaurants serving nearly 50
million people in more than 120 countries
QUICK FACTS
mcd was started as a drive-in-restaurant by
two brothers, Richard and Maurice McDonald
in californium's in the year 1937

4. Ray kroc,distributor of milk shake
machine,expressed interest in the business, and
he finalized a deal for franchising with the
McDonald's brother in 1954
He established a franchising company, the
McDonald system inc.
In 1961,he bought out the McDonald brother’s
share for $2.7 million and changed the name of
the company to McDonald’s Corporation

5. In India
1996 - First restaurant opens in India, at Basant
Lok ,Vihar, New Delhi.
McDonald's India is a 50 – 50 JV partnership
between McDonald’s Corporation (U.S.A) and
two Indian businessman Amit Jatia (Hardcastle
Restaurants Private Limited, Mumbai)and Vikram
Bakshi (Connaught Plaza Restaurants Private
Limited, Delhi).
Two separate operations in Northern & Western
India.

6. Partners and their management teams
trained extensively in Indonesia & the U.S.
Approximately 75% of the menu available in
McDonald’s in India is Indianized and
specifically designed to woo Indian customers.

7. THE 3 LEGGED STOOL
The strength of the alignment between the
Company and its employees, franchisees and suppliers
has been critical to McDonald’s success. This business
model enables McDonald’s to consistently provide
customers locally-relevant restaurant experiences and
be an integral part of the communities we serve.
Franchisees – own and operate the majority of our
restaurants
Suppliers – provide food and packaging
Company employees – support and deliver restaurant
operations around the world

8. McDonald’s supply chain
Also have large no. of
Mcd’s supply indirect suppliers,farms
chain is large and and facilities thad grow
complex and process the ingredient
to direct suppliers
Have numerous
direct suppliers
that make or
deliver final
products for the
restaurants

9. mcd indian supply chain
SUPPLIERS
Trikaya Agriculture
Supplier of Iceberg Lettuce
Vista Processed Foods Pvt. Ltd.
Supplier of Chicken and Vegetable range of products
(including Fruit Pies)
Dynamix Diary
Supplier of Cheese
Amrit Food
Supplier of long life UHT Milk and Milk Products for
Frozen Desserts

10. DISTRIBUTORS
Radhakrishna Foodland
Distribution Centres and cold storages.
Completely dedicated distribution and supply chain.
Matching supplier production with deliveries using ERP.
Quality inspection Program, quality check at 20
different points in supply chain.
HACCP(Hazard analysis critical control points) food
safety standards emphasizing prevention of faults.

11. Outsourcing the ingredients
• ITEM PLACE
Cheese dynamic dairy industries ltd , pune
Dehydrated onions jain foods , jalgaon
Iceberg lettuce trikaya agriculture,pune
Chicken patty vista foods,taloja
Veg. patty,veg nuggets, pie's kitran foods,taloja
Chicken(dressed) riverdale,talegaon
Buns cremica industries,phillaur
Eggless mayonnaise quaker cremica pvt ltd,phillaur
Sesame seeds ghaziabad
Fish fillet patties amalgam foods ltd,kochi
Vegetables for the patties finns frozen foods,nasik and jain
foods,jalgaon
Mutton and mutton patties al kabeer,hyderabad

12. logistics
Distributor Quality Management Process
Operations and Customer Relations
Quality Control (HACCP/QIP)
Cold Chain Standards
Hygiene Regulations
Product Handling Standards
Emergency and contingency plan
Risk and Crisis management
Continuous unannounced internal and 3rd party audits
for DCs result in superior quality scores regularly

13. DOMINOS
• Domino's Pizza, Inc. is an international pizza delivery
corporation headquartered in Ann Arbor, Michigan,
United States. Founded in 1960,
• Domino's is the second-largest pizza chain in the
United States and has nearly 9,000 corporate and
franchised stores in 60 international markets
• The menu features pizza, pasta, oven-baked
sandwiches, wings, boneless chicken, salads,
breadsticks, cheese sticks, and a variety of dessert
items.

14. Beginning of dominos pizza
• The Domino's franchise started out as just one
tiny store. It was purchased and started by
brothers Tom and James Monaghan in 1960. At
that time, the restaurant was known, not as
"Domino's," but as "Dominick's Pizza" and was
located in Ypsilanti, MI. The two brothers only
worked as a team until 1961, when James traded
his half of the business to his brother for the
price of a Volkswagen Beetle. In 1965, the name
"Dominick's" was traded for "Domino's."

15. In india
• Domino’s pizza opened its first store in India in
January 1996, at New Delhi. Today Domino’s
pizza India has grown into a country wide
network of more than 300 stores with a team
of 9000 people. According to India retail
report 2009, domino’s is the largest Pizza
chain in India.

16. Dominos operations
• Indian operations are ranked number one for the
past 3 years.
• Delivers an average of 1 million pizzas per day.
• Over the last 2 years, they opened stores in 15 new
cities.
• The company operates in three segments:

17. • The company operates in three segments:
– Domestic stores :
• Uses its company-owned stores as a testing
ground for new products and technologies
which may then be passed onto franchisees.
• Generates income from company-owned
stores in the form of store profits.

18. – Domestic supply chain :
• Vertically integrated supply system automatic delivery of
raw materials cuts out a lot of the "back of-store"
activities.
• Helps in keeping down food costs
International :
– consists of 3,469 franchised stores outside the United States.
– operates six supply chain centers which manufacture dough and
distribute food and supplies.
– International segment accounts for about 41% of
Domino's store
sales worldwide.

19. • Procurement of raw materials
• Raw materials like wheat, baby corn, tomatoes and
spices are got, out of which wheat was bought in
from jalandhar and then sent to the commissaries in
refrigerated trucks.
• 4 commissaries (Regional Centralized Facilities)
• Delhi
• Bangalore
• Kolkata
• Mumbai

20. • Distribution
• Pizza dough processed from the wheat is then sent
to the retail outlets again in refrigerated trucks.
• Logistics requirement for sending frozen foods, at a
temperature of ₋18:C and of refrigerated trucks in
which food is sent at a temperature range of
between 1 to 4:C.

21. • Retail Outlets
– Regular stores
– Super stores : High traffic, More counters
– Express stores : those where people were
expected to walk in and order rather than ask for
home delivery.

22. Outsourcing
ITEM PLACE
• Wheat Jalandhar
• Cheese Karnal, Haryan
• Tomatoes Bhubaneshwar
• Spice South India
• Baby Corn Nepal
• Exotic Vegetables Sri Lanka
• Pepperoni Australia
• Jalapeno Spain

23. QUESTION:1
• What are the key changes which
have made supply chain
management a critical function to
succeed in present day business
world?

24. To remain successful companies need supply chain
excellence and some will need to re-evaluate their
current processes and performance with these key trends in mind:
• Demand planning
• Globalization
• Increased competition and price pressures
• Outsourcing
• Shortened and more complex life cycles
• Collaboration between stakeholders and
extended supply chain

25. QUESTION:2
• How does an efficient supply chain
lead to strategic competitive
advantage?(McDonald’s)