PROJECT ON SUPPLY CHAIN MANAGEMENT

Perishable Products (Restaurant Chain)

Group Members

Nikhil Jadhav (8126) Asif Shaikh (8150 ) Pooja Shetty (8153) Sunil Singh (8155) Imran Khan (8185) Ashwin Kodati (8187)

OBJECTIVE :
Understand the markets basic requirements of the product. Understand the markets basic requirements of the product. Market potential of the product Market potential of the product Competitive environment of the chosen product Competitive environment of the chosen product Market dynamics in terms of consumer behavior about the market dynamics in terms of consumer behavior about the product product Detail information on the Supply Chain Detail information on the Supply Chain Mfg locations in India Mfg locations in India How product reaches to consumer? Criticality/significance How product reaches to consumer? Criticality/significance of the Supply chain of the Supply chain Who are all intermediate in between of Mfg to final Who are all intermediate in between of Mfg to final consumer e.g dealer, C&F agent, depot etc consumer e.g dealer, C&F agent, depot etc Describe role of each intermediate in the supply chain Describe role of each intermediate in the supply chain

MCDONALDS CORPORATION

McDonalds Vision, Mission and Value

Vision
To be the best & leading fast food providers around the globe

Mission
To be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile." Values Our values summarized in Q.S.C & V. Provide good quality, services to customer . Have cleanliness environment when customer enjoys their meal .The value of food product makes every customer is smiling.

Quick Facts About McDonalds

McDonald's was started as a drive-in restaurant by two brothers, Richard and Maurice McDonald in California,US in the year 1937. By mid-1950s, the restaurant's revenues had reached $350,000. Ray Kroc, distributor for milkshake machines, expressed interest in the business, and he finalized a deal for franchising with the McDonald brothers in 1954. He established a franchising company, the McDonald System Inc. and appointed franchisees. In 1961, he bought out the McDonald brothers' share for $2.7 million and changed the name of the company to McDonald's Corporation. In 1965, McDonald's went public

McDonald's In India
1996 - First restaurant opens in India, at
Basant Lok,Vasant Vihar, New Delhi.

McDonald's India is a 50 50 JV partnership between McDonalds Corporation (U.S.A) and two Indian businessman Amit Jatia (Hardcastle Restaurants Private Limited, Mumbai)and Vikram Bakshi (Connaught Plaza Restaurants Private Limited, Delhi). Two separate operations in Northern & Western India. Partners and their management teams trained extensively in Indonesia & the U.S. Approximately 75% of the menu available in McDonalds in India is Indianized and specifically designed to woo Indian customers. The McDonald's philosophy of QSC&V is the guiding force behind its service to the customers.

Market potential of the McDonalds

 McDonalds has built up huge brand equity. It is the No. 1 fast-food company by sales, with more than 31,000 restaurants serving burgers and fries in almost 120 countries. Sales, 2007 (11,4009 million), 5.6% sales growth Joint ventures with retailers (e.g. supermarkets). Consolidation of retailers likely, so better locations for franchisees. Respond to social changes - by innovation within healthier lifestyle foods. Its move into hot baguettes and healthier snacks (fruit) has supported its new positioning. Use of CRM, database marketing to more accurately market to its consumer target groups. It could identify likely customers (based on modeling and profiles of shoppers) and prevent brand switching. Strengthen its value proposition and offering, to encourage customers who visit coffee shops into McDonalds. The new formats, McCafe, having Wifi internet links should help in attracting segments. Also installing childrens play-parks and its focus on educating consumers about health, fitness. Continued focus on corporate social responsibility, reducing the impact on the environment and community linkages. International expansion into emerging markets of China and India.

Competitive environment of the

Restaurant Chain (MCD)

Competitive environment

McDonalds India: Channel Network

McDonalds India: Network & competitors

How product reaches to consumer? Criticality/significance of the Supply chain

Geographically Diverse suppliers: Ensuring stringent quality standards

The McDonalds Supply Chain

Import Breath of supply process control equipment

Supplier performance index

No direct control over issues, positive influence by raising questions, bringing people to the table and encouraging improvement

VALUE CHAIN ANALYSIS OF MCDONALDS

Inbound logistics

Organizing the supply of food and materials to restaurants through approved third party logistics operators.
Production in huge plants denoted exclusive to McDonalds control food distribution and packaging system

Inbound Logistics

Operations

Firm

R&D in field research needs of end users. quality development in Relatively Few collaboration with good Management Layers to Infrastructure suppliers Reduce Overhead
Effective Training Programs Forward to Improve Worker integration: Efficiency and Effectiveness through franchisees with Investments in Technology in order control over store to Reduce Costs Associated with presentation, Manufacturing Processes menu items

Human Resource Management Technological Development

etc. and enhance improvement
Small, Highly Trained Sales Force

Procurement
Operations Outbound Logistics Inbound Logistics

Frequent Evaluation Processes to participation in process Monitor Suppliers Performances

Efficient Plant Delivery Schedule Scale to Minimize that Reduces Manufacturing Costs Costs Selection of Low Timing of Asset Cost Transport Purchases Carriers Policy Choice of Efficient Order Plant Technology Sizes Organizational Learning

Products Priced to Generate Sales Volume

Service

Outbound logistics Is the concern of the franchisee.

Firm Infrastructure

Outbound logistics are Human Resource Management growing as a part of McDonalds recycling system Technological Development integrating in the logistics of Frequent Evaluation Processes to distribution center Procurement Monitor Suppliers Performances

Selection of Low Cost Transport Carriers Efficient Order Sizes

National Scale Advertising

Interrelationships with Sister Units

Marketing & Sales Service

Outbound Outbound Logistics Logistics

Delivery Schedule Small, Highly that Reduces Trained Sales Costs Force

Effective Product Installations to Reduce Frequency and Severity Products Priced to of Recalls Generate Sales Volume

Marketing

Firm Infrastructure Human Resource Management Technological Development

Long term marketing objectives are broken down into shorter term measurable targets, which McDonald uses as milestones. Country teams are given autonomy in marketing mix decision.

Procurement
Operations Outbound Logistics Inbound Logistics

Marketing & Sales Marketing & Sales Service

Advertising & PR is outsourced (Mudra agency in India)

Service

Services Firm Infrastructure provided by the companies enrollment Human Resource Management standards

Technological Development

Procurement Marketing Service & Sales Service Inbound Logistics Operations

Outbound Logistics

Procurement

Firm Infrastructure Human Resource Management Technological Development

Procurement Procurement Marketing & Sales Service Inbound Logistics Operations

Outbound Logistics

Sought partners with expertise on down trade distribution

R&D

Firm Infrastructure Human Resource Management Technological Development

Procurement
Operations Marketing & Sales Inbound Logistics
Technology and development research in quality assurance, and packing readdressed at lower cost, faster delivery chain system and process control equipments, recycling system.

Outbound Logistics

Service

HRM

Firm Infrastructure Human Resource Management Technological Development

HRM specialists in R&D Procurement formulation, education to and expertise in food raise awareness of issues and raise demand. The addressing environmental issues and CRS.

Operations

Outbound Logistics

Marketing & Sales

Inbound Logistics

Service

INFRASTRUCTURE

Firm Infrastructure
Support Activities

Human Resource Management Technological Development

Strong real estate portfolio. International organization more than 50000 employees works in more than 50 countries,

Operations

Marketing & Sales

Outbound Logistics

Inbound Logistics

Service

Process:

 Who are all intermediate in between of Mfg to final consumer. Describe role of each intermediate in the supply chain

Vital links of Mc Donalds cold chain.

McDonald's spent a few years setting up a unique Cold Chain. The Cold Chain is necessary to maintain the integrity of food products and retain their freshness and nutritional value.
Procurement

warehousing

Transportation

Retailing of food product

SUPPLIERS
Trikaya Agriculture Supplier of Iceberg Lettuce Vista Processed Foods Pvt. Ltd. Supplier of Chicken and Vegetable range of products (including Fruit Pies) Dynamix Diary Supplier of Cheese Amrit Food Supplier of long life UHT Milk and Milk Products for Frozen Desserts

Distribution
Radhakrishna Foodland Distribution Centres and cold storages. Completely dedicated distribution and supply chain. Matching supplier production with deliveries using ERP. Quality inspection Program, quality check at 20 different points in supply chain. HACCP(Hazard analysis critical control points) food safety standards emphasizing prevention of faults.

The five main performance objectives are:

Speed Cost Quality Dependability Flexibility