MCDONALDS SUPPLY CHAIN

MANAGEMENT

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Atul Garg Deepshikha agarwal Niraj Satnalika Rahul Kumar Ravi Ranbir Sahil Goel

11FN-126 11FN-033 11IB-038 11DM-118 11DM-123 11DM-131

WE WILL

Discuss McDonalds unique supply chain in India. Discuss the five major Indian suppliers who build up supply chain. Discuss how the supply chain works and contributes to the efficiency of McDonalds Understand how efficiency has contributed to McDonalds Global Success.

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WHAT IS SUPPLY CHAIN MANAGEMENT?

Supply chain management is network of interconnected business in the ultimate provision of product and services required by end customer. Supply chain management spans all movement and storage of raw material, work in process, finished goods from point of origin to the point of consumption.

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KEY POINT
McDonalds investment in India has changed the entire Indian fast food industry. It has raised the standards of food production and increased local and international business for Indian companies. The level of commitment of McDonalds can be gauged from the fact that even before it set up its first restaurant in the country it infused Rs 400 Crore to set up its delivery mechanism.

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HOW MCDONALDS USES E-PROCUREMENT SYSTEMS

Emac Digital: (Internet procurement site designed for McDonald's Corporation's 27,000 franchises ) Emac Digital Company is E-Procurement website which is jointly owned by McDonalds and AccelKKR Internet Co.

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It is a procurement hub launched in 2001,allows all of McDonald's franchises across the globe to buy everything needed to run their restaurants. From uniform to HamBurger

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Aside from being faster and more convenient for franchises, the procurement site also allows business owners to buy supplies and materials at a discounted price, ultimately reducing costs for McDonald's. E-Procurement allows 85% cut in costs according to McDonalds supply chief Edwards.

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BENEFITS FOR THE SUPPLIERS

McDonalds works with two types of suppliers.

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Major Suppliers Small Suppliers

Major Supplier

Small Suppliers

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Emac Digital
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MCDONALDS E-PROCUREMENT MODEL

Global Franchises
Place Orders

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Supply Received

Emac Digital

Supplier s

Logistics10

UNIQUE SUPPLY CHAIN

Controlled Temperatures
Procurement Warehousing Transportation Retailing

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Development of the Cold Chain

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 Produces

over 2,000 pounds of cheese per month. Helped set up 15 bulk cooling centers throughout the district from which it purchases milk. Checks fat content. Detects minute traces of pesticides or antibiotics administered to cows. This instant rejection forces farmers to follow the best practices in terms of raising livestock, using proper feeds, and cutting down on the use of pesticides and animal medicines.
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McDonald's has provided assistance in the selection of high quality seeds. Exposed the farmers to advanced drip-irrigation technology. Helped develop a refrigerated transportation system allowing a small business in India to provide fresh, highquality lettuce to McDonald's urban restaurant locations thousands of miles away.

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Technical and financial support extended by OSI Industries Inc., USA and McDonalds India Private Limited : Hi-tech refrigeration plants for manufacturing frozen food at temperatures as low as - 35 C. The latest vegetable mixers and blenders are in operation. Keeping cultural sensitivities in mind, both processing lines are absolutely segregated to ensure that the vegetable products do not mix with the non-vegetarian products. 15

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Specializes in handling large volumes of products Offers wide range of services: quality inspection, storage, inventory management, deliveries, data collection, recording and reporting. Effective process control for minimum distribution cost. A one-stop shop for all distribution management services. Dry and cold storage facility to store and transport perishable products.

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Amrit Food (Supplier of long life UHT Milk and Milk Products for Frozen Desserts)

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Monitors food as the ingredients move from farms to processing plants to the restaurant Implements McDonald's Quality Inspection Program (QIP), which carries out quality checks at over twenty different points in the Cold Chain system.

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WHY WAS MCDONALDS SO SUCCESSFUL IN INDIA?

It sourced all its required products from within the country. Respect for Indian Customs and Culture Quality, Service, Cleanliness & Value
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QUESTIONS ?????????
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THANK YOU
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