McDonalds Success In India Through Efficient Cold Chains

Presented By : RohitKartik Pankaj

World's largest chain of hamburger fast food restaurants serving around 68 million customers daily in 119 countries. May 15,1940 in California. Richard and Maurice McDonald. Number of locations - 33,000+ Employees - 420,000 (2011)

SOME IMPORTANT FACTS……

INDIAN MARKET………

Entered in India 1996

McDonald's India is a 50 – 50 JV partnership between MCDONALD’S CORPORATION (U.S.A) and two Indian businessman Amit Jatia and Vikram Bakshi.

Localisation: Don’t offer any beef or pork item in india In product like mcveggie, pizza mcpuff etc.they use spices favoured by indians Soft serves and mcshakes are eggless

Actively Involver in many social activities like CHILD EDUCATION, PULSE POLIO etc.

1996 …the first McDonald’s restaurant opened on Oct. 13, at Basant Lok, Vasant Vihar, New Delhi. It was also the first restaurant in the world not serving beef on its menu . 1997…the first Drive –Thru restaurant at Noida 1999…the first Mall location restaurant at Ansal Plaza – New Delhi 2000…the first highway restaurant at Mathura 2001…the first thematic restaurant at Connaught Place 2002…the first restaurant in a food court at 3C’s, Lajpat Nagar and the first restaurant at the Delhi Metro Station at Inter State Bus Terminus

INDIAN MARKET………

SUPPLY CHAIN

Supply Chain is one of the critical factors for the smooth functioning of any business. Enables to cut down costs and maximize profits.McDonalds infused Rs.400cr to set up its delivery mechanism 4 years prior to setting up its restaurant.The success of McDonalds India was achieved by sourcing all its required products from within the country.McDonalds India works with 38 different suppliers on a long term basis and several other stand alone restaurants for its various other requirements. First distribution partnership agreement with Radha Krishna Foodland.Cold Chain was one of the unique concepts of McDonalds supply chain in India.

MCDONALDS INDIA SUPPLY CHAIN

1. Dynamix Dairy Industries (Supplier of Cheese):

Dynamix has brought immense benefits to farmers in Baramati, Maharashtra. The factory has:

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.

LIST OF SUPPLIERS

2. Trikaya Agriculture (Supplier of Iceberg Lettuce):

Implementation of advanced agricultural practices has enabled Trikaya to successfully grow specialty crops like iceberg lettuce, special herbs and many oriental vegetables. Farm infrastructure features:

A specialized nursery with a team of agricultural experts.

Drip and sprinkler irrigation in raised farm beds with fertilizer mixing plant.

Pre-cooling room and a large cold room for post harvest handling.

Refrigerated truck for transportation.

LIST OF SUPPLIERS

3. Vista Processed Foods Pvt. Ltd. (Supplier of Chicken and Vegetable range of Products including Fruit Pies):

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:

Separate processing lines for chicken and vegetable foods.

Capability to produce frozen foods at temperature as low as -35 Degree Cel. to retain total freshness.

International standards, procedures and support services.

LIST OF SUPPLIERS

4. Radhakrishna Foodland (Distribution Centres for Delhi and Mumbai):

An integral part of the Radhakrishna Group, Foodland specializes in handling large volumes, providing the entire range of services including procurement, quality inspection, storage, inventory management, deliveries, data collection, recording and reporting. Salient strengths are:

A one-stop shop for all distribution management services.

Dry and cold storage facility to store and transport perishable products at temperatures up to -22 Degree Cel.

Effective process control for minimum distribution cost.

LIST OF SUPPLIERS

5. Amrit Food (Supplier of long life UHT Milk and Milk

Products for Frozen Desserts):

Amrit Food, an ISO 9000 company, manufactures widely popular brands –

Gagan Milk and Nandan Ghee at its factory at Ghaziabad, Uttar Pradesh.

The factory has:

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.

LIST OF SUPPLIERS

Additional source of income for farmers.

Lower costs for McDonalds.

Less Inventory.

Minimum wastage.

Raised the standards of Indian Fast Food Industry to International standards.

As McDonalds expands, supplier can also expand his business.

Advantages

Cold Chain

Cold Chain

Cold chain is a logistic system that provides a series of facilities for maintaining ideal storage conditions for perishables from the point of origin to the point of consumption in the food supply chain.

COLD CHAIN

Pre-cooling facilities

Cold Storages

Refrigerated Carriers

Packaging

Warehousing

Information Management systems (Traceability and Tracking etc.)

The Cold chain logistics infrastructure generally consists of

A streamlined, well maintained cold chain helps to:

Reduce costs

Improve product integrity

Increase customer satisfaction

Reduce wastage and returns of expired stock

Need for a distribution agent

Radhakrishna Foodland Private Limited (RFPL)

Items were delivered to RFPL’S distribution centre

Stored the products in Mumbai and NewDelhi

FJ Walker of Australia, a McDonald's partner helps RFPL to build Cold storage in Thane

RFPL also handled McDonald's inventory management

Cold Chain Network of McDonalds in India

Meeting McDonald's "cold, clean, on-time" delivery standards from 30 suppliers

AFL Logistics Ltd (ALL)

Coughlin's task was to make sure that McDonald's had the proper amount of supplies and materials

To meet McDonald's high standards, Coughlin ensured that quality, temperature and packaging requirements were met.

Unused capacity in the vehicles was used to transport goods from other vendors.

RFPL was also responsible for cleanliness and the packing and temperature control of the food.

There were also data logs to track the movement of each batch.

McDonald's insisted on standardization by its suppliers.

Ex: Vista & Kitran Foods

THANK YOU…..