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McDonalds suppliers

McDonalds India - Introduction


McDonald's is the world's leading food service retailer with more than 33,000 restaurants in 118 countries Serving more than 67 million customers each day McDonald's India started operations in 1996 at Vasant Vihar, New Delhi 50-50 Joint venture between McDonalds Corporation (USA) and Hardcastle Restaurants Pvt Ltd and Connaught Plaza Restaurants Pvt Ltd McDonald's India now has a network of over 250 restaurants Serving more than 6.5 lakh customers daily in India Vegetable products are prepared separately, using dedicated equipment McDonald's won the award for Innovations in Technology Infrastructure and Value Chain Innovations (Sustainability) at the Parivartan Awards, 2011 McDonalds has a 100% outsourced supply chain model Cold chain system set up over 6 years reduces wastage and maintains freshness

Trikaya Agriculture
Supplier of Iceberg Lettuce Investments in cooling plant and refrigerated vehicles 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

Vista Processed Foods


Supplier of Chicken and Vegetable products Joint venture between OSI industries and McDonalds India 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

Dynamix Dairy
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

McCain Foods
Supplier of potatoes Helping farmers with hotter agronomy techniques, including irrigation, sowing seeds treatment, planting methods, fertilizer application and storage

Logistics - Radhakrishna Foodland


Sole distributor of McDonalds Created better facilities, infrastructure and new systems to satisfy McDonalds demands Dry and cold storage facility to store and transport perishable products at temperatures up to -22 Deg. Celsius Responsible for procurement, quality inspection, storage, inventory management etc. Effective process control for minimum distribution cost

E-Procurement
McDonalds E-procurement A major reason for the successful management of their supply chain aiding the existing logistic structure EMac Digital - An internet sourcing site designed for McDonalds Corporations 27000 franchises(next generation e-procurement POS software) A sourcing hub launched in 2001 allows all McDonalds franchises across the globe to buy everything needed to run their restaurants Faster and more convenient Allows business owners to buy supplies at a discounted price Allows an 85% cost reduction

McDonalds Kano Model

Single sourcing dilemma


Advantages Better pricing through higher volumes Better quality through continuous improvements Stronger and Long term relationship Inventory and Scheduling

Disadvantages Supply Disruption due to default by supplier Price Escalation Long Time required for vendor development Absolute reliance leading to absolute exploitation

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