Description
This is a presentation explaining about Mcdonald’s Supply Chain in India.
1
Mc DONALD’S SUPPLY CHAIN
2
AGENDA
• • • • Introduction History of Mc Donald’s Mc Donald’s in India Mc Donald’s Supply chain ? Supply Chain Challenges ? Supply Chain Strategy ? Cold Chain ? Validation of cold chain ? Cold chain partners ? Logistics ? Result of Supply chain Integration
3
INTRODUCTION
• Leading global food service retailer • 32, 000 local restaurants, 60 million people, more than 100 countries • Hamburgers, Chicken sandwich, French fries, soft drinks, breakfast items and desserts • Local deviation from the standard menu • Abide by regional taboos
4
HISTORY
• 1940 – Began as a restaurant opened by siblings Dick and Mac McDonald in California • 1948 – Introduction of “Speedy Service System” • 1955 - Opening of a franchised restaurant by Ray Kroc • Post 1955 – Kroc purchased Mc brothers equity in the company and led to world wide expansion
5
McDonald’s IN INDIA
• Entered India in 1996 through a joint venture with Hardcastle Restaurants Pvt. Ltd. and Connaught Plaza Restaurants Pvt. Ltd. • 160 restaurants in India • Special menu with vegetarian selection, no beef • Products using Indian spices - McVeggieburger, McAloo Tikki burger • Indian local suppliers provide McD with highest quality freshest ingredients
6
McDonald’s– FOUR PILLARS OF SUCCESS
Limited Menu Fresh Food Fast Service Affordable Price
7
Mc Donald’s SUPPLY CHAIN IN INDIA
• • • • Source all its requirements from within India Developed local business Works with 38 different local suppliers Trained local farmers to produce according to their specification • Worked with vendor to get the perfect cold chain in place • Distribution centers – Noida, Kalamboli, Bangalore, Kolkata • Cold chain – Unique concept of McD supply chain in India
8
Mc Donald’s SUPPLY CHAIN CHALLENGES
• Full Supply Chain responsibility • Multi Temp. Products - Over 65 % temperature controlled • Stores as far as 500 – 1000 kms • Drops per month - Over 1000 - Movement mainly by road • Regular movement of perishables by air • No margin for error – Operations critical client
9
Mc Donald’s SUPPLY CHAIN CHALLENGES (cont.)
• • • • • • No Stock Outs at store On time delivery record – above 97 % Clean delivery record – above 99 % Unfailing inbound supply chain Bull whip effect Cannibalization
10
SUPPLY CHAIN STRATEGY
SUPPLY CHAIN SERVICES FOR McDONALD‘S RESTAURANTS
12
COLD CHAIN – LIFELINE OF FAST FOOD BUSINESS
• Temperature controlled supply chain • Series of storage and distribution activities which maintain a given temperature range • Extend and ensure the shelf life of food products
2oc Locked in precooling room to remove field heat after harvesting 1 to 4 o c -18 to 4 o c McDonald’s store products to be used on daily basis
Transportation to distribution centers in refrigerated vans
13
VALIDATION OF COLD CHAIN
Component Qualification • Qualification check on packaging components Operational Qualification • To demonstrate that the process performs at the operational extremes Performance Qualification • To demonstrate that what happens in the real world is within the limits of what was demonstrated in the Operational Qualification limits
14
COLD CHAIN PARTNERS BEHIND THE Big Mac
Source: http://www.rediff.com/business/1999/apr/29mac5.jpg
15
COLD CHAIN PARTNERS
1. Dynamic Dairy Industries - Supplier of Cheese
? Baramati, Maharashtra ? Immense benefit to farmers by setting up a network of milk collection centres equipped with bulk coolers ? From farm two degrees Celsius in 90 minutes ? Fully automatic international standard processing facility ? Capability to convert milk into cheese, butter/ghee, skimmed milk powder, lactose, casein & whey protein and humanized baby food ? Stringent quality control measures and continuous Research & Development
16
COLD CHAIN PARTNERS (Cont.)
2. Trikaya Agriculture-Supplier of Iceberg Lettuce
? Talegaon, Maharashtra ? Grow lettuce all year round with the help of experts from Mc Donalds ? A specialized nursery with a team of agricultural experts ? Vegetables are moved into the pre-cooling room within half an hour of harvesting. ? The pre-cooling room ensures rapid vacuum cooling to 2º C within 90 minutes. ? The pack house, post-cooling and cold room are located at the farms itself, ensuring no delay between harvesting, precooling, packaging and cold storage ? Refrigerated truck for transportation.
17
COLD CHAIN PARTNERS (Cont.)
3. Vista Processed Foods Pvt. Ltd. -Supplier of Chicken and Vegetable range of products including Fruit Pies
? Taloja, Maharashtra. ? Produces a range of frozen chicken and vegetable foods ? The technology includes hi-tech refrigeration plants for manufacture of frozen food at temperatures as low as - 35° c. ? Cultural sensitivity: Vegetable & chicken manufactured at different processing lines separated by a shower (washing) area. Utmost care to ensure no mixing up. ? R&D facility for innovation in taste, nutritional value and convenience
18
COLD CHAIN PARTNERS (Cont.)
4. Radhakrishna Foodland -Distribution centers for Delhi and Mumbai
? Thane, Maharashtra ? Handles large volumes ? Services include procurement, quality inspection, storage, inventory management, deliveries, data collection, recording and reporting ? Dry and cold storage facility to store and transport perishable products at temperatures upto -22 Degree Cel. ? Effective process control for minimum distribution cost ? Variety of items coming from across India, stored in rooms with different temperature zones and are finally dispatched to the McDonald's restaurants on the basis of their requirements ? Very vital role in maintaining the integrity of the products
19
COLD CHAIN PARTNERS (Cont.)
5. Amrit Food- Supplier of long life UHT Milk and Milk Products for Frozen Desserts
? Ghaziabad, Uttar Pradesh ? ISO 9000 company ? Manufacture widely popular brands – Gagan Milk and Nandan Ghee ? State-of-the-art fully automatic machinery requiring no human contact with product, for total hygiene. ? Installed capacity of 6000 ltrs/hr for producing homogenized UHT (Ultra High Temperature) processed milk and milk products. ? Strict quality control supported by a fully equipped quality control laboratory.
20
LOGISTICS
• • • • • • • • • Handled by AFL Logistics Ltd. ~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) Freight consolidation (via freight forwarders) Long term partnerships with service providers, risk sharing • Strong quality focus (Cold Chain, HACCP, QIP)
21
SUPPLY CHAIN INTEGRATION
RESULT OF SUPPLY CHAIN INTEGRATION
? Significant business benefits to both the customer and the supply chain ? Enablers ? One stop shopping concept - Central file management ? Inventory management - Restaurant simplification ? Synchronizing the perishable Supply Chain ? Demand forecasting ? Promotional + Continuous Supply ? Supplier and DC level ? Supply Planning ? Restaurant and DC level ? Visibility and Collaboration across the chain
23
REFRENCES
• http://www.icmrindia.org/free%20resources/casestudie s/McDonald%20food%20chain-7.htm • http://www.articlesbase.com/marketingarticles/mcdonalds-india-supply-chain-729402.html • www.expresshospitality.com/20070315/management06 .shtml • www.mcdonaldsindia.com • www.nrf.com/Attachments.asp?id=9504
doc_334985117.pptx
This is a presentation explaining about Mcdonald’s Supply Chain in India.
1
Mc DONALD’S SUPPLY CHAIN
2
AGENDA
• • • • Introduction History of Mc Donald’s Mc Donald’s in India Mc Donald’s Supply chain ? Supply Chain Challenges ? Supply Chain Strategy ? Cold Chain ? Validation of cold chain ? Cold chain partners ? Logistics ? Result of Supply chain Integration
3
INTRODUCTION
• Leading global food service retailer • 32, 000 local restaurants, 60 million people, more than 100 countries • Hamburgers, Chicken sandwich, French fries, soft drinks, breakfast items and desserts • Local deviation from the standard menu • Abide by regional taboos
4
HISTORY
• 1940 – Began as a restaurant opened by siblings Dick and Mac McDonald in California • 1948 – Introduction of “Speedy Service System” • 1955 - Opening of a franchised restaurant by Ray Kroc • Post 1955 – Kroc purchased Mc brothers equity in the company and led to world wide expansion
5
McDonald’s IN INDIA
• Entered India in 1996 through a joint venture with Hardcastle Restaurants Pvt. Ltd. and Connaught Plaza Restaurants Pvt. Ltd. • 160 restaurants in India • Special menu with vegetarian selection, no beef • Products using Indian spices - McVeggieburger, McAloo Tikki burger • Indian local suppliers provide McD with highest quality freshest ingredients
6
McDonald’s– FOUR PILLARS OF SUCCESS
Limited Menu Fresh Food Fast Service Affordable Price
7
Mc Donald’s SUPPLY CHAIN IN INDIA
• • • • Source all its requirements from within India Developed local business Works with 38 different local suppliers Trained local farmers to produce according to their specification • Worked with vendor to get the perfect cold chain in place • Distribution centers – Noida, Kalamboli, Bangalore, Kolkata • Cold chain – Unique concept of McD supply chain in India
8
Mc Donald’s SUPPLY CHAIN CHALLENGES
• Full Supply Chain responsibility • Multi Temp. Products - Over 65 % temperature controlled • Stores as far as 500 – 1000 kms • Drops per month - Over 1000 - Movement mainly by road • Regular movement of perishables by air • No margin for error – Operations critical client
9
Mc Donald’s SUPPLY CHAIN CHALLENGES (cont.)
• • • • • • No Stock Outs at store On time delivery record – above 97 % Clean delivery record – above 99 % Unfailing inbound supply chain Bull whip effect Cannibalization
10
SUPPLY CHAIN STRATEGY
SUPPLY CHAIN SERVICES FOR McDONALD‘S RESTAURANTS
12
COLD CHAIN – LIFELINE OF FAST FOOD BUSINESS
• Temperature controlled supply chain • Series of storage and distribution activities which maintain a given temperature range • Extend and ensure the shelf life of food products
2oc Locked in precooling room to remove field heat after harvesting 1 to 4 o c -18 to 4 o c McDonald’s store products to be used on daily basis
Transportation to distribution centers in refrigerated vans
13
VALIDATION OF COLD CHAIN
Component Qualification • Qualification check on packaging components Operational Qualification • To demonstrate that the process performs at the operational extremes Performance Qualification • To demonstrate that what happens in the real world is within the limits of what was demonstrated in the Operational Qualification limits
14
COLD CHAIN PARTNERS BEHIND THE Big Mac
Source: http://www.rediff.com/business/1999/apr/29mac5.jpg
15
COLD CHAIN PARTNERS
1. Dynamic Dairy Industries - Supplier of Cheese
? Baramati, Maharashtra ? Immense benefit to farmers by setting up a network of milk collection centres equipped with bulk coolers ? From farm two degrees Celsius in 90 minutes ? Fully automatic international standard processing facility ? Capability to convert milk into cheese, butter/ghee, skimmed milk powder, lactose, casein & whey protein and humanized baby food ? Stringent quality control measures and continuous Research & Development
16
COLD CHAIN PARTNERS (Cont.)
2. Trikaya Agriculture-Supplier of Iceberg Lettuce
? Talegaon, Maharashtra ? Grow lettuce all year round with the help of experts from Mc Donalds ? A specialized nursery with a team of agricultural experts ? Vegetables are moved into the pre-cooling room within half an hour of harvesting. ? The pre-cooling room ensures rapid vacuum cooling to 2º C within 90 minutes. ? The pack house, post-cooling and cold room are located at the farms itself, ensuring no delay between harvesting, precooling, packaging and cold storage ? Refrigerated truck for transportation.
17
COLD CHAIN PARTNERS (Cont.)
3. Vista Processed Foods Pvt. Ltd. -Supplier of Chicken and Vegetable range of products including Fruit Pies
? Taloja, Maharashtra. ? Produces a range of frozen chicken and vegetable foods ? The technology includes hi-tech refrigeration plants for manufacture of frozen food at temperatures as low as - 35° c. ? Cultural sensitivity: Vegetable & chicken manufactured at different processing lines separated by a shower (washing) area. Utmost care to ensure no mixing up. ? R&D facility for innovation in taste, nutritional value and convenience
18
COLD CHAIN PARTNERS (Cont.)
4. Radhakrishna Foodland -Distribution centers for Delhi and Mumbai
? Thane, Maharashtra ? Handles large volumes ? Services include procurement, quality inspection, storage, inventory management, deliveries, data collection, recording and reporting ? Dry and cold storage facility to store and transport perishable products at temperatures upto -22 Degree Cel. ? Effective process control for minimum distribution cost ? Variety of items coming from across India, stored in rooms with different temperature zones and are finally dispatched to the McDonald's restaurants on the basis of their requirements ? Very vital role in maintaining the integrity of the products
19
COLD CHAIN PARTNERS (Cont.)
5. Amrit Food- Supplier of long life UHT Milk and Milk Products for Frozen Desserts
? Ghaziabad, Uttar Pradesh ? ISO 9000 company ? Manufacture widely popular brands – Gagan Milk and Nandan Ghee ? State-of-the-art fully automatic machinery requiring no human contact with product, for total hygiene. ? Installed capacity of 6000 ltrs/hr for producing homogenized UHT (Ultra High Temperature) processed milk and milk products. ? Strict quality control supported by a fully equipped quality control laboratory.
20
LOGISTICS
• • • • • • • • • Handled by AFL Logistics Ltd. ~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) Freight consolidation (via freight forwarders) Long term partnerships with service providers, risk sharing • Strong quality focus (Cold Chain, HACCP, QIP)
21
SUPPLY CHAIN INTEGRATION
RESULT OF SUPPLY CHAIN INTEGRATION
? Significant business benefits to both the customer and the supply chain ? Enablers ? One stop shopping concept - Central file management ? Inventory management - Restaurant simplification ? Synchronizing the perishable Supply Chain ? Demand forecasting ? Promotional + Continuous Supply ? Supplier and DC level ? Supply Planning ? Restaurant and DC level ? Visibility and Collaboration across the chain
23
REFRENCES
• http://www.icmrindia.org/free%20resources/casestudie s/McDonald%20food%20chain-7.htm • http://www.articlesbase.com/marketingarticles/mcdonalds-india-supply-chain-729402.html • www.expresshospitality.com/20070315/management06 .shtml • www.mcdonaldsindia.com • www.nrf.com/Attachments.asp?id=9504
doc_334985117.pptx