Professional Documents
Culture Documents
By:Abhinav khanduja Aayush sharma Nalini katiyar Mohit rathi Kriti singh Keshav kishore 208 209 215 220 236 261
OBJECTIVE
To study the operations and supply chain management of Mc Donalds and Dominos.
MAJOR PLAYERS
McDonalds History
It started as a drive-in-restaurant in the late 1940s. In 1966, McDonalds was listed on the New York Stock Exchange. In June 1967, McDonalds opened its first restaurant outside U.S in Canada. In 1996, McDonalds entered India in a joint venture. McDonalds now has a network of over 160 restaurants across the country
PRODUCTS
Vegetarian Menu
Non-Veg Menu
McCafe
Desserts
McDonalds took 4 years and around Rs 450 crores to set up the food supply chain even before opening its 1st restaurant. McD India has pioneered the cold chain management system. They provided assistance in the
Selection of high quality seeds Drip-irrigation technology Refrigerated transportation system
SUPPLIERS
1. Dynamix Dairy Industries (Supplier of Cheese)
Fully automatic international standard processing facility. Network of milk collection centres equipped with bulk coolers. Dedicated quality program. Dedicated R&D centre
3) Vista Processed Foods Pvt. Ltd. (Supplier of Chicken and Vegetable products)
DISTRIBUTION
Radhakrishna Foodland Ltd.
Dry and cold storage facility Transportation trucks maintained at 22 C Implemented ERP software.
Chicken patty
Veg. Patty, Veg. Nuggets, Pies Chicken (dressed) Buns Eggless mayonnaise Sesame seeds
Quality Inspection Programme (QIP) carried out in the Cold Chain system. Hazard Analysis Critical Control Point (HACCP) Based on HACCP guidelines, control points and critical control points for all McDonald's major food processing plants and restaurants in India have been identified.
Contd
Mc Donalds 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 zonesfreezer,chiller, and ambient to ferry product demanding varying temperatures from supplier location to the distribution centre.
Contd
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.
Restaurants have in built cold storage units subdivided into same aforesaid zones freezer, chiller ,and National Retail Federat Reference: -Case Study ambient.
Procurement logistic
Distribution logistics
Consumer/outlets
Supply of ingredients:
Sesame seeds Ghaziabad, UP
Special vegetarian sauce (Eggless) Quaker Cremica, Phillaur,Punjab Batter & Breading Cremica Industries , Ludhiana ,Punjab
Buns Shah & sons, Khopoli ,MH & Cremica Industries, Noida Iceberg lettuce Trikaya Agriculture , Talegaon MH Meena Agritech ,Delhi Ferrocoa Farm, Dehradoon
Vegetable Patty (Made from fresh Peas, Carrots,Green beans, Potatoes and Rice) Kiltran foods, Taloja MH
Reference: mcdonaldsindia.com
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 ones 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.
BACKGROUND NOTE
In the late 1950s, Dominick De Varti (Varti) owned a small pizza store named DomiNicks Pizza on the Eastern Michigan University campus in Ypsilanti, Michigan. In 1960, two brothers who were students of the University of Michigan Thomas S. Monaghan (Thomas) and James S. Monaghan bought that store.
Thomas decided to change the name of his first store, DomiNicks Pizza, and one of his employees suggested the name Dominos Pizza (Dominos).
OVERVIEW
Founded in 1965 by Tom Monaghan. Second-largest Pizza chain in the United States. about 8,500 corporate and franchised stores in 55 countries. Domino's Pizza outlet in India opened in 1996. Close to 274 outlets in 55 cities of India. 70 percent of its revenue comes from home delivery service & around 30 percent is over-the-counter sales.
DOMINOS INDIA
In early 2000, Pawan Bhatia, the former CEO of Dominos Pizza India (Dominos) was a man in a hurry. He had frantically reworked the pizza chain's India strategy. Bhatia planned to open 150 new outlets by the end of 2002 covering 23 cities(Tier-I),including Bhubaneshwar (Orissa) and Jamshedpur (Bihar).
As part of its expansion plans Domino's revamped its entire supply chain operations, from sourcing raw materials to shipping them for processing at a central location to delivering it to the customer's.
CORPORATE STRATEGY
Exceptional people on a mission to be the best pizza delivery company in the world! "
'Think global and act local Fun, happiness and convenience
PRODUCTS
Pizzas Pastas Breadsticks Cheese Dips Beverages Chocolava
OPERATIONS
Indian operations are ranked number one for the past 3 years. Delivers an average of 1 million pizzas per day. Over the last 2 years, they opened stores in 15 new cities. The company operates in three segments: 1. Domestic stores 2. Domestic supply chain 3. International
1. Domestic Stores
uses its company-owned stores as a testing ground for new products and technologies which may then be passed onto franchisees. generates income from companyowned stores in the form of store profits. 2. Domestic Supply Chain Vertically integrated supply system automatic delivery of raw materials cuts out a lot of the "back of-store" activities. Helps in keeping down food costs.
3. International
consists of 3,469 franchised stores outside the United States. operates six supply chain centers which manufacture dough and distribute food and supplies. International segment accounts for about 41% of Domino's store sales worldwide.
Raw materials like wheat, baby corn, tomatoes and spices are got, out of which wheat was bought in from jalandhar and then sent to the commissaries in refrigerated trucks. 4 commissaries (Regional Centralized Facilities) 1. Delhi 2. Bangalore 3. Kolkata 4. Mumbai
2. Distribution
Pizza dough processed from the wheat is then sent to the retail outlets again in refrigerated trucks.
Logistics requirement for sending frozen foods, at a temperature of 18C and of refrigerated trucks in which food is sent at a temperature range of between 1 to 4C.
3. Retail Outlets
1. Regular stores 2. Super stores : High traffic, More counters 3. Express stores : those where people were expected to walk in and order rather than ask for home delivery.
DOUGH
REFRIGERATED TRUCK
WAREHOUSE
Wheat
Cheese Tomatoes Spice Baby Corn Exotic Vegetables Pepperoni Jalapeno
Jalandhar (Punjab)
Karnal, Haryana Bhubaneshwar, Orissa South India Nepal Sri Lanka Australia Spain
ISSUES
Dominos were in 16 cities so the level of complexity is bit high for them.They cant go for centralized system. The retail outlets had to use up the processed dough within three days of delivery. Need of call center.
It worked seemed simple: each time a customer called, his location was identified and the order was transferred to the nearest Dominos outlet, which then took on the task of delivering the order 30 minutes.
LAYOUT PLAN
PRODUCT OFFERINGS
Pizzas
Pastas Breadsticks
Cheese Dips
Beverages (tie-up with Coca Cola) Choco Lava Cake Chicken Wings
PRODUCTION
Dough Table
Makeline
Seasoning Topping
Oven
1-2 minutes
1 minute
5-6 minutes
Turnout is 1 pizza per minute Meets the current demand requirements Bottleneck is oven
DISTRIBUTION
Dough balls processed from wheat are sent to retail outlets in refrigerated trucks
LOGISTICS
WHEAT (JALANDHAR) SUPPLIERS (Toppings & Seasonings) RETAIL OUTLET
DOUGH
COMMISSARY
REFRIGERATED TRUCK
INVENTORY MANAGEMENT
ITEM SHELF LIFE
Dough ball
Mexican Wrap Base Cheese Dip Seasoning and Toppings Onion, Tomato, Capsicum
5 days
3-4 days 4-5 days 4-5 days 5 days
Cheese Blend
4-5 days
CONTD
Mini Cold Storage at Outlet (Walk In) Maintain approximately 4 days of inventory Trucks from commissaries replenish inventory every 4 days Inventory levels are monitored centrally via POS data using Intura Vision installed in every outlet Two POS per outlet (Telephonic sales and In Store Sales)
OPERATIONAL STRATEGY
Hub and Spoke Distribution
Hubs at 4 commissaries
Delayed Differentiatio n
Sales Incentives
QUALITY INITIATIVES
SCIP (Store Continuous Improvement Plan)
Sales Training
FTD (Friday Training Day) HTR (Handle The Rush) Rubber Gloves.
CUSTOMER SERVICE
Belief that all meaningful ideas are good and must be implemented
ISSUES
RECOMMENDATIONS
COMPETITION
ISSUES
RECOMMENDATIONS
COMPETITION
Authority to introduce offers for short period For a better market study and introduce new products suited to local preferences
ISSUES
RECOMMENDATIONS
COMPETITION
CONCLUSION
Fast Food industry in India is growing at a fast rate. From the study done among the 3 fast food services McDonalds, Dominos and Pizza hut, we can clearly come to the conclusion that McD with its superior supply chain management (cold chain) is able to balance between its quality and cost. The setting up of cold chain has enabled it to cut down on its operational wastage.
REFRENCES
www.mcdonadlsindia.in www.dominos.co.in www.supplychain.org www.wikipedia.org www.inboundlogistics.com www.books.google.co.in www.advancesupplychain.com www.distributionchain.com