McDonalds Supply Chain INDIA

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Supply Chain of C Donald’s S hailendra S ingh R ajput MBA-AB 2011-13

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Quick facts about McDonald's was started by two brothers, Richard and Maurice McDonald in California, US in the year 1937. Ray Kroc , distributor for milkshake machines, expressed interest in the business, and he finalized a deal for franchising with the McDonald brothers in 1954. 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… C Donald’s: Reference: mcdonalds.com

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C Donald’s history India: Entered in India 1996. India is 50-50 JV partnership between C Donald’s Corp. USA & two Indian businessman Amit Jatia and Vikram Bakshi . Trained extensively with their Indian management team in Indonesia and USA before launch. The entire menu was changed. 90% of C Donald’s business is owned and run by independent franchisees in India. Reference: mcdonaldsindia.com

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Extended Hours Pricing Food Innovation Operation Excellence Brand Trust K ey business drivers & potential:

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38 supplier throughout India & several standalone restaurants working with it for various requirements Distribution Centers: Reference: mcdonaldsindia.com

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Where the food comes from: C Donald’s Supply Chain Reference: logistics.bafree.net

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M c Donald’s India sources its ingredients from local suppliers who are an integral part of the cold chain. Refrigerated trucks with multi-temperature facility divided into 3 zones- freezer,chiller , and ambient to ferry product demanding varying temperatures from supplier location to the distribution centre. Reference: National R etail F ederation -Case Study

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Distribution centre is also divided into multi-temperature zones , as are the trucks for storing products. With freezer at 0 degree F to 33 degree F , chiller at 33 degree F to 40 degree F, and room temperature. Reference: National R etail F ederation -Case Study

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Restaurants have in built cold storage units subdivided into same aforesaid zones –freezer, chiller ,and ambient. Reference: National R etail F ederation -Case Study

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Consumer/outlets 38 suppliers across the country Procurement logistic Food /nonfood: Frozen , chilled & any dry goods Warehousing & packaging Distribution logistics Food /nonfood: Frozen , chilled & any dry goods C Donald’s Supply Chain (160 restaurants across the country) #

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Supply of ingredients: Sesame seeds Ghaziabad, UP Buns Shah & sons, Khopoli ,MH & Cremica Industries, Noida Iceberg lettuce Trikaya Agriculture , Talegaon MH Meena Agritech ,Delhi Ferrocoa Farm, Dehradoon Special vegetarian sauce (Eggless) Quaker Cremica , Phillaur,Punjab Batter & Breading Cremica Industries , Ludhiana ,Punjab Vegetable Patty (Made from fresh Peas, Carrots,Green beans, Potatoes and Rice) Kiltran foods, Taloja MH Reference: mcdonaldsindia.com

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“ The basic purpose of a supply chain is to coordinate the flow of materials, services , and information along the elements of the supply chain to maximize customer value. ” And this is what we did…. Ray Kroc

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LESSONS: Look before you leap . ( Mc Donalds did an extensive research before venturing into this nation for more than 4 years and put in 450 crores plus during those times, to develop its supply chain ) In Rome , do as Romans do ! Mc Donalds customized its products to Indian taste-buds, also to connect to the public, avoided pork and beef products. In addition the processing lines for vegetable and non-vegetable products are kept separate. Principle of mutual need: If one can assure one’s vendor that both are interdependent on each other, the trust must carry the relationship. In other words-“You must allow market forces and not binding agreements to determine just who the constituents of your supply chain will be.

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Thank you…!!!