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Strategically designing the concepts and innovating the ideas such as drive in restaurant, QSCV values. Partnerships and collaboration Centralized warehousing Forecasting demand Setting up supply chain standards and quality parameters Inventory management Logistics management Backward integration Outsourcing Trust on suppliers Push pull boundary Cold chain Supply chain network
Facts to look at
-World Market Leader in the QSR area (Quick Service Restaurant) -Franchise System (75%)
Indias Transportation and Storage Infrastructure Poor Agricultural Products Lower Quality
Mc Donald's enter India in the year 1996 with the Entry Strategy Think Global, Act Local
Indian McDonald
Dont offer any beef or pork item in India in product like mc veggie, pizza mcpuff etc. Two separate production lines for chicken and vegetable patties. They use spices favoured by Indians soft serves and mc shakes are eggless
The importance of supply chain can be understood by the fact that before setting up their first restaurant in India, Mc Donald's infused around Rs. 400 crores in the supply and delivery chain.
Pre Launch Planning (6 years)
Product development Agriculture processes improvement Improve quality & greater yields Quality control improvements Cold Storage Facilities improvement Logistics improvement Traceability Minimized costs and optimized quality
McDonalds Model
McDonald's had a very well orchestrated supply chain, called the 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 benefits both farmers as well as the consumers, as they are getting the fresh, best quality and great value food.
With this concept mc Donald's cut down its wastage and able to maintain its freshness of raw material.
procurement
warehousing
transportation
retailing
ITEM
Cheese Dehydrated onions Iceberg lettuce Chicken patty
PLACE
Dynamix Dairy Industries Ltd., Pune Jain Foods, Jalgaon Trikaya Agriculture, Pune Vista Foods, Taloja
Advanced agricultural practices helps them to grow speciality crops like lettuce and herbs. Pre cooling room and large cold room for post harvest. Mc Donald's helped Trikaya agriculture develop a variety of ice burg lettuce Refrigerated transportation
For chicken, temperature maintained is -35 degrees Celsius. Refrigerated transportation New chill rooms and temperature control rooms set up by Mc Donalds.
Amrit food-Supplies long life UHT milk / milk products for desserts Buns-shah Bector &Sons, Maharashtra And Cermica, Ludhiyana Batter & Breading- Cremica, Ludhiyana Vegetable Patty- Kitran Foods, Taloja, Maharashtra Cheddar Cheese- Dynamix Dairy, Baramati, Maharashtra Seasame Seed- Gaziabad, Up Spl Veg Eggless Sauce- Quaker, Cermica, Ludhiyana
Are
Sourced
From
Different
Specialized in handling large volumes. Activities involved are quality inspection management, deliveries, reporting etc. ,storage, inventory
Responsible for cleanliness and personal hygiene of drivers Packaging and temperature control of foods. Data logs to track movement of each batch
suppliers
restaurant
customers
Facilities
Best in class storage facilities available. The two main facilities are production sites and the storage site.
Transportation It is the process where the inventory is moving from place to place. Refrigerated vans are used here in this case. Use of 3PL. Inventory
It includes raw materials, work in progress, and finished good within a supply chain. Restaurant can not stock more than 3 days and warehouses upto 14 days. 400 SKU in the warehouse
Outsourcing Activity such as production, storage, transportation, and distribution) in a supply chain. This activity was taken care by McDonalds . Information It includes data and analysis related to facilities, inventory, transportation, cost, prices and customers in the whole supply chain. This activity was done by Radhakrishana food land that acts as their distribution centre.
Pricing Charge for a particular goods and services that it makes available in the supply chain. It was done by the McDonalds only
Mc Donald's use push pull strategy Products will be pushed to the restaurants Push Based Strategy Flexible form of products from central distributing system Suppliers
Strength
Weakness
&
Strong brand name, image reputation. Large market share. Strong global presence. Introduction of new products Strong financial performance position.
&
High staff Turnover Customer losses due to fierce competition. Legal actions related to health issues; use of trans fat & beef oil.
Opportunities
Threats
Diversification and acquisition of other quick-service restaurants Growth of the fast-food industry Low cost menu that will attract the customers. Freebies and discounts Joint venture with retail supermarket
Ill health and obesity issues. McDonalds competitors Awareness about nutritional and healthy food
Thank you