group4 logistics final
TRANSCRIPT
8/6/2019 Group4 Logistics Final
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Logistics inHospitalityIndustry
Presented by:
Sachin Baluja (04)
Arpan Banerjee (14)
Kunal Kapila (24)
Meenu Mittal (34) Ankit Shah (44)
Pranshu Soni (54)
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Agenda
Logistics in Hospitality industryLogistics in Hospitality industry
Profit Profit Oriented operationsOriented operations
Five star HotelsFive star Hotels
Off shore cateringOff shore catering
RegulationsRegulations
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Logistics in Hospitality industry
Indian traditionIndian tradition
Culture, habits, religionCulture, habits, religion
Philosophy of Philosophy of Atithi Atithi DevoDevo BhavaBhava
Despite coming from an orthodox understanding of Despite coming from an orthodox understanding of services in hospitality, India is quickly catching upservices in hospitality, India is quickly catching upthe race and becoming an leader in innovation onthe race and becoming an leader in innovation on
various key frontsvarious key fronts
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Logistics in Hospitality industry
Hospitality OperationsHospitality Operations
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Logistics in Hospitalityindustry
Examples of CommercialExamples of Commercial -- Profit oriented operationsProfit oriented operations
Hotels and MotelsHotels and Motels
Resorts and LodgesResorts and Lodges
CasinosCasinos
SpasSpas
QuickQuick--Service(Fast Service(Fast-- Food Joint)Food Joint)
TableTable--Service(Full Service) RestaurantsService(Full Service) Restaurants
Food Courts and Snack BarsFood Courts and Snack Bars
Taverns, Lounges and BarsTaverns, Lounges and Bars
CafeteriasCafeterias
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Logistics in Hospitalityindustry
Examples of CommercialExamples of Commercial -- Profit oriented operationsProfit oriented operations
BuffetsBuffets
OnOn--Premise CatererPremise Caterer
Off Off--Premise CatererPremise Caterer IceIce--Cream Parlors and StandsCream Parlors and Stands
InIn--Transit Food ServicesTransit Food Services
Convenient Stores/Supermarket/Department Convenient Stores/Supermarket/Department
Stores/Discount stores with Food ServicesStores/Discount stores with Food Services Foodservice companies that work on contract basis that Foodservice companies that work on contract basis that
operate in schools, recreation centers, plants, corporateoperate in schools, recreation centers, plants, corporatebuildings, etc.buildings, etc.
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Logistics in Hospitalityindustry
Examples of NonExamples of Non--Commercial Division of HospitalityCommercial Division of HospitalityIndustryIndustry
Employee Feeding OperationsEmployee Feeding Operations
Public Elementary and secondary school food servicesPublic Elementary and secondary school food services Food services for transportation like the meals on theFood services for transportation like the meals on the
wheels programwheels program
HospitalsHospitals
Community CentersCommunity Centers Military InstallationsMilitary Installations
CampsCamps
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MCDONALDS
SUPPLY CHAIN
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The McDonalds Supply Chain
"Our growth plan for the next three to five"Our growth plan for the next three to fiveyears is more a function of getting our logisticsyears is more a function of getting our logisticsand cold chain right rather than going to far off and cold chain right rather than going to far off
places.places.-- Amit Amit JetiaJetia, managing director, McDonald's India, Mumbai Joint , managing director, McDonald's India, Mumbai Joint
Venture Venture
McDonalds Supply chain is based on the threeMcDonalds Supply chain is based on the three--legged stool concept :legged stool concept : CompanyCompany FranchiseesFranchisees SuppliersSuppliers
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LogisticsLogistics 100 sales items in the restaurant 100 sales items in the restaurant 400 SKUs in the warehouse (Hubs: up to 1,500)400 SKUs in the warehouse (Hubs: up to 1,500)
200 restaurants per DC (180 DCs globally)200 restaurants per DC (180 DCs globally) Delivery frequency: 3/wk, higher in urban areasDelivery frequency: 3/wk, higher in urban areas 22--3 stops per route3 stops per route Exclusive distributors (3PL)Exclusive distributors (3PL)
Long term partnerships with service providers,Long term partnerships with service providers,risk sharingrisk sharing
The McDonalds Supply Chain
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The McDonalds Supply Chain
Before first outlet Before first outlet 4 years and Rs 4004 years and Rs 400 crorescroresto setup its supply chain delivery mechanismto setup its supply chain delivery mechanism
McDMcD India has pioneered the cold chainIndia has pioneered the cold chainmanagement systemmanagement system
Efficient supply chain and stateEfficient supply chain and state--of of--art art
technology changed Indian Fast Food Industrytechnology changed Indian Fast Food Industry
Distribution Centers:Distribution Centers: NodiaNodia and Mumbaiand Mumbai 1996 , Bangalore1996 , Bangalore 2004 , Kolkata2004 , Kolkata 20072007
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MCDONALD SUPPLIERS
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COLD CHAIN Partners
1.1. DynamixDynamix Dairy Industries (Supplier of Cheese)Dairy Industries (Supplier of Cheese)
2.2. TrikayaTrikaya Agriculture (Supplier of Iceberg Lettuce) Agriculture (Supplier of Iceberg Lettuce)
3.3. Vista Processed Foods Pvt. Ltd. (Supplier of Vista Processed Foods Pvt. Ltd. (Supplier of Chicken and Vegetable range of productsChicken and Vegetable range of productsincluding Fruit Pies)including Fruit Pies)
4.4. RadhakrishnaRadhakrishna Foodland (Distribution Centres forFoodland (Distribution Centres forDelhi and Mumbai)Delhi and Mumbai)
5.5. Amrit Amrit Food (Supplier of long life UHT Milk andFood (Supplier of long life UHT Milk andMilk Products for Frozen Desserts)Milk Products for Frozen Desserts)
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LOCAL
DAIRY
FARM
BULK
COOLING
Cheese,butter,
lactose etc.
REFRIGERA
TED VAN
DYNAMIX DAIRY ±
BARAMATI PUNE
TRIKAYA
FARMS
PRE
COOLING
ROOMS
LARGE
COLD
ROOMS
REFRIGERA
TED VAN
TRIKAYA
AGRICULTURE -
TALEGAON
Chicken &Veg
Processing
Hi-techRefrigeration
Cold StorageRooms
REFRIGERATED VAN
VISTA PROCESSED
FOODS
Homogenized UHT Milk
& Milk Products
QUALITY
CONTROL
REFRIGERA
TED VAN
AMRIT FOODS
Reception of
various
Products
Cold & Dry
Storage
Refrigerated
Trucks
RADHAKRISHNA
FOODLAND
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CHALLENGES
Even stronger focus on freshness andEven stronger focus on freshness and qualityquality
OnOn--goinggoing product product innovationsinnovations
StrongStrong customer demand fluctuationscustomer demand fluctuations basedbased ononpromotionspromotions
OrderOrder-- and inventoryand inventory management restaurant management restaurant
DCDC suppliersupplier -- rawraw materialmaterial suppliersupplier
BullBull Whip effect Whip effect
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Five Star Hotels
The Hotels should source supplies and ingredients inThe Hotels should source supplies and ingredients inorder to get preferred ingredients to the table in theorder to get preferred ingredients to the table in theright combination which is not easy with globalright combination which is not easy with global
supply chain and perishable food supplies.supply chain and perishable food supplies.
Five Star Hotels Procure throughFive Star Hotels Procure through
Centralized Procurement consortiumCentralized Procurement consortium
Decentralized Procurement ProcessDecentralized Procurement Process
These hotels have invested to computerize andThese hotels have invested to computerize andstreamline their supply chain in order to clamp downstreamline their supply chain in order to clamp down
the costs.the costs.
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Advantages of E-Procurement
It will reduce the price on products and servicesIt will reduce the price on products and servicesbecause of volume aggregation.because of volume aggregation.
It will provide real time and immediate access to theIt will provide real time and immediate access to the
market place with an established mass of buyers andmarket place with an established mass of buyers andsuppliers.suppliers.
It will simplify the purchasing process and henceIt will simplify the purchasing process and hencewould increase the savings by providing an orderwould increase the savings by providing an orderprocessing which is automated.processing which is automated.
Customized content and user interfaceCustomized content and user interface
Connectivity to broad range of IT Infrastructure andConnectivity to broad range of IT Infrastructure andERPs.ERPs.
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Logistical Challenges
Wage cost is lower but costs for importing foodstuffsWage cost is lower but costs for importing foodstuffsis very high. Hotels have to set up expansive controlis very high. Hotels have to set up expansive controllab where food goes through checks right from right lab where food goes through checks right from right
material storage, cooking to serving.material storage, cooking to serving.
Some of the raw material which were availableSome of the raw material which were availableearlier, now become scarce due to export e.g.earlier, now become scarce due to export e.g.Kashmir Apples, Alphorns Mango, Kerala Prawns.Kashmir Apples, Alphorns Mango, Kerala Prawns.
Import of specialized fish, meat and poultryImport of specialized fish, meat and poultryproducts.products.
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Five Star Hotels - In Flight Catering Services
In Flight caterers consists of kitchens andIn Flight caterers consists of kitchens andwarehouses as close to airports.warehouses as close to airports.
They hold up to four days of raw materials asThey hold up to four days of raw materials as
inventory.inventory. The material is brought in, inspected and washed inThe material is brought in, inspected and washed in
mineral water and then refrigerated.mineral water and then refrigerated.
The process of unfreezing, chopping, cutting,The process of unfreezing, chopping, cutting,
preparing starts with 24 hour lead time.preparing starts with 24 hour lead time. 6 hours before any flight there is a visibility on the6 hours before any flight there is a visibility on the
count of meals.count of meals.
The meals will be ready before 5 hours and poppedThe meals will be ready before 5 hours and poppedin the freezer.in the freezer.
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In Flight Catering(Cntd.)
The food is delivered before 2 hours of flight The food is delivered before 2 hours of flight departure for an originating flight.departure for an originating flight.
For return flight turnaround time is tighterFor return flight turnaround time is tighter thethe
caterer will clean the gallery and deliver of mealscaterer will clean the gallery and deliver of mealswithin 30within 30-- 45 minutes post landing.45 minutes post landing.
The flight meals are delivered at below 5 centigradeThe flight meals are delivered at below 5 centigradeafter packing it in aluminum foil or plastic film; hot after packing it in aluminum foil or plastic film; hot meals are flashmeals are flash-- frozen to minimize cases of bacterialfrozen to minimize cases of bacterialinfection.infection.
The food and beverage are loaded into airlineThe food and beverage are loaded into airlinetrolleys and delivered in refrigerated hitrolleys and delivered in refrigerated hi--loader trucks.loader trucks.Food is considered delivered only after it is loadedFood is considered delivered only after it is loaded
and tallied by cabin crew.and tallied by cabin crew.
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In Flight Catering(Cntd.)
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Logistical Challenges
Caterers should not be root cause of delay of flightsCaterers should not be root cause of delay of flightsowing to late delivery of food.owing to late delivery of food.
Should not be cause of an in flight food poisoningShould not be cause of an in flight food poisoning
incident.incident. Caterer has to prepare large no of meals and theyCaterer has to prepare large no of meals and they
cant offer same meal day in and day out. The menucant offer same meal day in and day out. The menuis decided by Airline chefs .e.g. Kingfisher hasis decided by Airline chefs .e.g. Kingfisher hasexhaustive list of 200 menus which they keep onexhaustive list of 200 menus which they keep onrotating on different routes and in different cycles.rotating on different routes and in different cycles.
Margins are low as compared to other hospitalityMargins are low as compared to other hospitalityindustry and capital investments are high.industry and capital investments are high.
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Mass Customization In-Flight Catering
Mass customization includes lean production, JITMass customization includes lean production, JITinventory, flexible working hours, modularity andinventory, flexible working hours, modularity andagile manufacturing. Flight Kitchen requires MCagile manufacturing. Flight Kitchen requires MC
because of their high daily output, variety betweenbecause of their high daily output, variety betweenairlines, seat classes and products. The uses MCairlines, seat classes and products. The uses MC
Relies heavily on forecastingRelies heavily on forecasting
Last minute changes in schedules and menusLast minute changes in schedules and menus
Common ingredients to manage wide variety of Common ingredients to manage wide variety of menusmenus
Mix of contract Labor and permanent staff.Mix of contract Labor and permanent staff.
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Offshore Catering
Complete Custom CateringComplete Custom Catering
Full serviced ,licensed and insured bartendingFull serviced ,licensed and insured bartending
Professional service staff Professional service staff
Equipment like glassware, china, linens, tables, chairs andEquipment like glassware, china, linens, tables, chairs andother items.other items.
Entertainment which includes DJs, Live bands, danceEntertainment which includes DJs, Live bands, danceperformersperformers
Tenting, Staging and lightingTenting, Staging and lighting
Event GraphicsEvent Graphics
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Logistical Challenges faced inOffshore Catering
They have to provide quality catering services keeping inThey have to provide quality catering services keeping inmind cost pressures.mind cost pressures.
They have to hire highly qualified and experienced staff.They have to hire highly qualified and experienced staff.
They should be able to satisfy diverse culture need inThey should be able to satisfy diverse culture need intough environment(e.g. Sea)tough environment(e.g. Sea)
Flexibility is of paramount importance in terms of size orFlexibility is of paramount importance in terms of size ornature of clients operations.nature of clients operations.
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Regulations
Government of India has changed Quarantine rule .Under that Government of India has changed Quarantine rule .Under that there is a need to individually certify each item of import.there is a need to individually certify each item of import.Earlier Hotels and Restaurants placed an order with theEarlier Hotels and Restaurants placed an order with theinternational suppliers who would cart a refrigerated containerinternational suppliers who would cart a refrigerated container
and put all the supplies in the containers and hotel can obtain aand put all the supplies in the containers and hotel can obtain asingle quarantine certificate for that.single quarantine certificate for that.
But with the new changes, Hotels have to import individualBut with the new changes, Hotels have to import individualitem separately. For this Hotels rely on consolidators whoitem separately. For this Hotels rely on consolidators whoimport for several customers, get them certified and store inimport for several customers, get them certified and store in
their warehouses.their warehouses. Restaurant serving undercooked meat, such as rare steaks orRestaurant serving undercooked meat, such as rare steaks or
hamburgers, must post relevant details of the health riskshamburgers, must post relevant details of the health risksinvolved with eating it in a prominent area, such as on theinvolved with eating it in a prominent area, such as on themenu.menu.
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Regulations (Cntd.)
There are many government agencies in a country like FDAThere are many government agencies in a country like FDA US food & drug administration and USADUS food & drug administration and USAD-- US department of US department of agriculture who ensure that the food which people eat is safeagriculture who ensure that the food which people eat is safeand does not have any harmful additives.and does not have any harmful additives.
The food products need to be labeled correctly and now someThe food products need to be labeled correctly and now somecountries have even issued strict guidelines for advertisementscountries have even issued strict guidelines for advertisementsof various products.of various products.
HACCPHACCP hazard analysis and critical control point is beinghazard analysis and critical control point is being
implemented by FDA and USDA in order to standardize theimplemented by FDA and USDA in order to standardize thepractices in food quality and safety.practices in food quality and safety.
US Bioterrorism act made in 2002 requires the tracking of theUS Bioterrorism act made in 2002 requires the tracking of thesource of raw materials and also the destination customer of source of raw materials and also the destination customer of
the goods.the goods.