Professional Documents
Culture Documents
MC D Suppy Chain
MC D Suppy Chain
SUPPLY
CHAIN
Agenda
• Company Overview
• The McDonald’s Supply Chain
• Supply Chain Integration
• Results
The McDonald’s System – the World’s Best QSR
experience
Quick
Service
Restaurant
The McDonald’s Supply Chain
Purchasing
“The 3 legged stool”: Corporation – Franchisees –
Suppliers
Exclusive, certified facilities
Handshake agreements, Trust
Long term win-win partnership, risk sharing
Rigorous product and service specifications
Strong focus on quality, product specification and
environmental audits
Distributor is wholesaler for Restaurants
The McDonald’s Supply Chain
Logistics
~100 sales items in the restaurant
~400 SKUs in the warehouse (Hubs: up to 1,500)
~200 restaurants per DC (~180 DCs globally)
Delivery frequency: ~3/wk, higher in urban areas
2-3 stops per route
Exclusive distributors (3PL)
Long term partnerships with service providers,
risk sharing
Strong quality focus (Cold Chain, HACCP, QIP)
Mc D India supply chain
• Before it set up its first restaurant in the country it infused
Rs 400 Crore to set up its delivery mechanism.
McDonald’s initiative to set up an efficient supply chain
and deploy state-of-art technology changed the entire
Indian fast food industry
• McDonald’s distribution centres in India came in the
following order: Noida and Kalamboli (Mumbai) in 1996,
Bangalore in 2004, and the latest one in Kolkata (2007).
• Between 1992 and 1996, when McDonald's opened its first outlet in
India, it worked frenetically to put the perfect supply chain in place. It
trained the local farmers to produce lettuces or potatoes to
specifications and worked with a vendor to get the perfect cold chain
in place. And explained to the suppliers precisely why only one
particular size of peas was acceptable These efforts paid off in the
form of joint ventures between McDonald's India (a 100% wholly-
owned subsidiary of McDonald's USA) and Hardcastle Restaurants
Pvt. Ltd, (Mumbai) and Connaught Plaza Restaurant (New Delhi).
COLD CHAIN Partners
1. Dynamix Dairy Industries (Supplier of Cheese)
2. Trikaya Agriculture (Supplier of Iceberg Lettuce)
3. Vista Processed Foods Pvt. Ltd. (Supplier of Chicken and
Vegetable range of products including Fruit Pies)
4. Radhakrishna Foodland (Distribution Centres for Delhi and
Mumbai)
5. Amrit Food (Supplier of long life UHT Milk and Milk Products
for Frozen Desserts)
1. Dynamix Dairy Industries (Supplier of Cheese)
A joint venture with OSI Industries Inc., USA, McDonald's India Pvt. Ltd. and
Vista Processed Foods Pvt. Ltd., produces a range of frozen chicken and
vegetable foods. A world class infrastructure at their plant at Taloja,
Maharashtra, has: