E-Procurement at McDonalds

McDonalds has a 100 percent outsourced supply chain, which is a rare case in industry giants. But it has
complete control over its functioning. Excellent procurement is one of the reason that McDonald's has
been able to grow from a small family barbecue restaurant into a global conglomerate with more than
35,000 restaurants in over 110 different countries.

A successful supply chain management at McDonalds is attributed to its E-procurement system which is
so efficient that it provides backbone not only to Logistics but to whole supply chain.

Emac Digital: McDonalds e-procurement system which is owned by McDonalds and Accel-KKR Internet
Co. E-Procurement is a website that allows McDonald’s franchises to buy everything needed to run their
restaurants. Below mentioned are some of the benefits:

 Faster and very convenient to place orders.

 Materials and supplies available at discounted prices
 Allows 85% cut in costs for McDonalds
 Structured and a transparent process

McDonalds E- Procurement Model

Global
Franchises

Place Orders Supply

Received

Emac Digital

Suppliers Logistics
 Suppliers of McDonalds
One important aspect of McDonalds is the long lasting relationship it builds and values with all its
suppliers around the globe.

McDonald’s lndia today purchases more than 96% of its products and supplies from lndian suppliers. It
imports only oil and fries. With a total of 40 suppliers in which 14 are the core suppliers, known as Tier-
1 suppliers, they supply directly to the fast food chain:

Some of the Core Suppliers:

Amrit Foods: Amrit Foods, a division of Amrit Banaspati, has been associated with McDonaId’s India as a
supplier of Dairy Mixes, Soft Serve Mix and MiIk 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 initiaI success Cremica added buns and biscuits to its
product line and in 1996 McDonaId’s selected Cremica to be its supplier for buns, Iiquid condiments,
batter and breading in collaboration with its international partners.

Dynamix Dairies: McDonaId’s India has approved Dynamix Dairies, Baramati (Maharashtra) for the
suppIy of cheese to its restaurants. Dynamix has a modern automated plant that is fuIIy computer
controlled.

Trikaya Agriculture: Trikaya AgricuIture is McDonaId’s supplier of fresh iceberg lettuce. The farms at
TaIegaon, Maharashtra produce the crop throughout the year.

Vista Processed Foods: Supplier of Chicken and vegetabIe products from its Hi-tech refrigeration plants
for the manufacture of frozen foods at a temperature as low as -35C.

Major Suppliers of McDonalds

Item Place
Cheese Dynamix Dairy Industries, Pune
Dehydrated Onions Jain Foods, Jalgaon
Iceberg Lettuce Trikaya Agriculture, Pune
Chicken Patty Vista Foods, Taloja
Veg Patty, Veg Nuggets Kitran Foods, Taloja
Buns Cremica Industries, Phillaur
Sesame Seeds Ghaziabad
Mutton, Mutton Patties Al Kabeer, Hyderabad
Chicken (dressed) Reiverdale, Talegon
Eggless Mayonnaise Quaker Cremica Pvt. Ltd
Fish Filet Patties Amalgam Foods, Kochi
Vegetable for the patties Jain Foods
 A typical Burger has materials supplied from almost all over India

Special Vegetarian
Sauce from quaker
Batter and Breading cremica, Punjab
from Cremica EBL,
Ludhiana

Seasame
Buns from Seeds from
Maharashtra Ghaziabad
and Cremica U.P.
Ludhiana

Vegetable
patty from
Kiran foods,
Maharashtra

Fresh Iceberg lettuce Cheddar Cheese

from talegaon, ooty from Dynamix dairy
farms T.N, Delhi industry,
Maharashtra