McDonald's has a global supply chain to provide consistent food products to its over 31,000 restaurants in more than 100 countries. In India, McDonald's implemented a "Cold Chain" supply chain using temperature-controlled distribution to source and deliver fresh ingredients from local suppliers. Key aspects of McDonald's India cold chain include 38 long-term local suppliers, refrigerated transportation of ingredients, and small storage windows to minimize waste and ensure product freshness.
2. McDonalds
McDonalds is a name which is today synonymous with the fast
food. McDonald's is a fast food chain with restaurants all over the
world
It serves burgers and other fast food customized to local tastes. Its
philosophy has been 'one world, one burger’
Headquarters: Oak Brooks, Illinois, US.
In India, McDonald's had a very well orchestrated supply chain,
called the 'Cold Chain'.
3. In year 2004, McDonalds was the largest marketer of
fast food in the world.
31000+ restaurants.
47 million customers served daily.
1999- 8th most valuable brand.
2000- ranked among top 100 firms in the world
In India:
Incorporated in 1993, MIPL is McDonalds India’s
wholly owned subsidiary.
In India, McDonalds open its first restaurant in Vasant
Vihar, South Delhi.
4. A SUPPLY CHAIN IS…
A supply chain is a system of organizations, people, technology,
activities, information and resources involved in moving a
product or service from supplier to customer. Supply chain
activities transform natural resources, raw materials and
components into a finished product that is delivered to the end
customer
5. Supply chain of McDonalds
In a fast food business, supply chain is of highest importance.
It helps in minimizing cost, cut down the delivery time,
improve the profits and at the same time maintain the highest
standards.
Before setting up their first restaurant in India, McDonalds
infused around Rs. 400 crores in the supply and delivery
chain.
McDonalds developed local businesses that supply them the
products and that too of highest standards.
Today McDonalds have around 38 suppliers and that too on
the long term basis.
1st distribution agreement was done by Radhakrishana
group, a group engaged in food business in the year 1993
and it was their 1st distribution center
6. 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.
7. Steps involved in cold chain:
Procurement
Warehousing
Transportation
Retailing
All the above activities took place in temperature
controlled atmosphere
8. List of suppliers
Dynamix dairy industry (cheese)
Trikaya agriculture (iceburg 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)
9. Special vegetarian
Batter & Breading sauce from quaker
from creminca EBL, cremica, Punjab
Ludhiana
Buns from
Shah Sesame seeds from
Bector & Ghaziabad, Uttar
sons khooli Pradesh
Maharashtra,
Cremica
Ludhiana Vegetable patty from
Kiran foods, taoja
Maharashtra
Fresh Iceberg lettuce Cheedar Cheese from
From trikaya agriculture, telegacon Dynamix dairy industry
Maharashtra, Ooty farms, Maharashtra
ootacamandu
TN, meena agritech, Delhi
10. 3 logistical drivers
Facilities- they are the actual physical location in the supply
chain network where the product is stored, assembled, or
fabricated. 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- it is the process where the inventory is
moving from place to place. Refrigerated vans are used here
in this case.
Inventory- it includes raw materials, work in progress, and
finished goods within a supply chain
11. Push and Pull process:
Various suppliers supplies the materials
Products delivered to distribution centers
Products delivered to restaurant
Push stops here pull
starts here
Customer order at restaurant