SUPPLY CHAIN MANAGEMENT

Group 05:

Krishnan K 09FT-122Sanchit Gupta 09FT-133Saumya Sharma 09FT-139Shyam Ramaswamy 09FT-150Tripuraj Singh 09FT-164

From forks to farms

OMNIVORES DILEMMA & A CORPORATION’S RESPONSIBILITY

ABOUT McDONALD’S

Founded in 1948 at California

World’s leading food service retailer

31,000restaurents, 119 countries, 50 million customer each day

Started India operations in 1996

160+ restaurants across country

Company invested 6 years to develop its supply chain before they started operations in India

Local Sourcing is the turnkey for McDonald’s India

SUSTAINABLE SUPPLY CHAIN

ETHICALPurchase from suppliers that follow practices that ensure the health and safety of their employees and the welfare and humane treatment of animals

ENVIRONMENTALSourcing materials and ensuring the design of our products, their manufacture, distribution and use minimize lifecycle impacts on the environment.

ECONOMICDelivering affordable food, engaging in equitable trade practices, limiting the spread of agricultural diseases, and

positively impacting the communities that our suppliers operate in.

GLOBAL REVENUES

3 PILLARS OF McDONALDS SUPPLY CHAIN

McDONALD’S BACKWARD INTEGRATIONIndirect Suppliers Primary Processing Plants &

Production Plants: Operate Facilities such as

grain mills and abattoirs Farms & Ranches: Raise cattle;

grow lettuce, wheat and other ingredients.

Direct Suppliers Distribution Centers: Coordinate

purchasing and distribution to restaurants.

Final Processing Facilities: Produce finished products like meat patties, buns and beverages.

McDonald's Restaurants

DELIVERING VALUE AT EACH STEP

ONE-STOP-SHOPPING LEAN LOGISTICS SOLUTION TO McDONALD’S

Logistics Transporting Warehousing

Integrated Trading (supports purchasing dept.) Value added Services Total Cost Transparency

Backward Integration•Potato Farming

•Cold Chain•Suppliers Integrations

McDONALDS INDIA SUPPLY CHAIN

KEY PLAYERS IN DISTRIBUTION

Radhakrishna foodland Trikaya Agriculture Vista Food Processors Dynamix Dairy Amrit Foods

POTATO FARMING IN GUJARAT

Company spent 450 cr and 6 years before starting its operations: shows how important the supply chain is for the company

McDonalds used its pioneered Cold Chain technology to preserve freshness, crispiness and nutritional value of products

McCain Foods pvt ltd(largest french fry company in the world) started working closely with farmers in Gujrat

Interacted with ergonomists and field assistants to implement best practices

POTATO FARMING IN IMPROVEMENTS CONTD..

Irrigations systems Sowing seed treatments Planting methods Fertilizers applications Better storage methods

Direct selling to McCain instead of commission agents

McDONALD’S DISTRIBUTION PARTNER: RADHAKRISHNA FOODLAND

Partnership in 1993, 3 years before McDonalds India operations started

Focus on “Cold, Clean & On-time delivery” to McDonald’s

Mission of Radhakrishna: “to ensure that all McDonald’s restaurants

are supplied without interruption, products conforming to acceptable standards at lowest local cost to systems”

McDONALD’S DISTRIBUTION PARTNER: RADHAKRISHNA FOODLAND CONTD…

Designing system to handle large volumes

Engineering delivery and storage network to fulfill unique requirement of each customer

Emerging as key system player in distribution

Investment in ERP system to bring “efficiency, speed and accuracy to the system”

McDONALD’S DISTRIBUTION PARTNER: TRIKAYA AGRICULTURE

Supplier of Fresh Lettuce McDonald’s transferred its own

technology, procedures, food processing , warehousing and distribution, restaurant equipment manufacturing and operations to Trikaya.

Trikaya grows Lettuce all round the year as compared to other firms which grow it during winters only

McDONALD’S DISTRIBUTION PARTNER: TRIKAYA AGRICULTURE CONTD…

Uses high quality seeds, advance drip irrigation technology and refrigerated transportation systems

Vegetables are preserved at 20 C within 90

minutes McDonalds also helped it to supply to star

rated hotels, ships and flight kitchens all over India

McDONALD’S DISTRIBUTION PARTNER: DYNAMIX DAIRY

Primary supplier of Cheese Supplies world class highest quality

dairy products McDonald give’s and opportunity to:

Expand suppliers business Provides latest technology Exposure to advance practices Access to overseas markets for exports

McDONALD’S DISTRIBUTION PARTNER: DYNAMIX DAIRY CONTD….

High-tech 100% computer controlled automation equipments

Setup cooling locations at a distance of 1-2 kms from collection centers

McDonalds educated Milk producers with latest concepts, hygiene and cleanliness, regulated feeding, disease control and genetic improvement.

Tie-up with Schreiber foods USA& Erie foods USA, to improve quality

McDONALD’S DISTRIBUTION PARTNER: VISTA PROCESSED FOODS PVT. LTD.

Main supplier of Chicken and Vegetable products Refrigeration system of frozen food at -350C McDonalds helped Vista Processed Foods to process

food which includes: De-boning Blending Forming Coating Frying Freezing

McDonald’s supports R&D towards innovation in taste , nutritional value & convenience

McDONALDS INDIA COLD CHAIN

Spreading spirit of Enterprise all over India Commitment to provide quality products and

fast service Translating benefits to the grass root level Took 6 years to setup in India Focused on long term relationships with its

suppliers Educated and trained suppliers on reduction of

food wastage due to lack of proper infrastructure

McDONALDS INDIA COLD CHAIN CONTD..

Cut down operational expenses Preserve nutritional values Improved procurement, warehousing and

transportation From field to 20C in 90 minutes Flavor and freshness locked at -350C Continuous development of infrastructure and

technology of suppliers Provided support to its suppliers to grow their

business