SUPPLY CHAIN MODELS IN

THE FAST FOOD INDUSTRY

INTRODUCTION
4 principal changes in the past few decades
The food supply chains volume has tripled in
the past three decades
Composition has diversified
Governments direct role in the marketing of
grain output doubled
Private part of Indias food economy has been
transforming rapidly.

KFC CHINA
Location strategy
Promotional marketing
Speed and convenience
Supplier Management
The supply of logistics model of DRP
Supply of products and services
Competitive conditions in the industry


Mc. Donalds - India
Mc Donalds distribution centers
Concept of cold chain
Steps involved in cold chain concept
List of suppliers
Dynamix dairy industry
Trikaya agriculture
Vista processed food
Radha Krishna food land
Amrit foods
Different items different geographies

Supply chain process cycle
Customers
Retailer/Mc Donalds restaurants
Distributor
Suppliers
Customer Order Cycle
Replenishment Cycle
Procurement Cycle
Various suppliers supply the materials
Products delivered to Distribution Centres
Products delivered to restaurant
Customer order at restaurant
Push stops,
pull starts here
Three logistical drivers
Facilities
Transportation
Inventory
Three cross functional
drivers
Sourcing
Information
Pricing
Pull/push process

Cheese
Dynamix Dairy Industries Ltd., Pune
Dehydrated onions
Jain Foods, Jalgaon
Iceberg lettuce
Trikaya Agriculture, Pune
Chicken patty
Vista Foods, Taloja
Veg. Patty, Veg. nuggets,
Pineapple/Apple pie
Kitran Foods, Taloja
Chicken (dressed)
Riverdale, Talegaon
Buns
Cremica Industries, Phillaur
Eggless mayonnaise
Quaker Cremica Pvt. Ltd., Phillaur
Sesame seeds
Ghaziabad
Iceberg lettuce
Meena Agritech, Delhi
Fish fillet patties
Amalgam Foods Ltd., Kochi.
Iceberg lettuce
Ooty Farms & Orchards, Ooty
Vegetables for the patties
Finns Frozen Foods & Jain Foods
(Nasik, Jalgaon)
Mutton and mutton patties
Al Kabeer, Hyderabad
Reduction of Transportation, Warehousing, and
Distribution Costs
Reduced Direct and Indirect Labor Costs.
Optimized Stock Levels
Increased Decision Making Speed and Responsiveness
to Demand Change
Increased Customer Service
Increased Inventory Availability, Customer Order Fill
Rates, Accuracies and Services
Reduced Inventory Carrying Costs
Improved Quality of Products and Services

Supply Chain Benefits


Supply Chain Challenges

New geographic markets
New Product Offering
Customization and Personalisation
Forthcoming site relocations
Forthcoming information systems
Impact of mergers and acquisitions
Likely disruption to transport
Transportation/communication infrastructure failure
Critical skills shortage
Significant changes in the trading environment.
Natural hazards/disasters
Man made civil emergency



Scope of Industry
Indian food market is estimated at over 9.1 lakhs crore.
It accounts to about 2/3
rd
of the total retail sector in
India.
Indias retail sector is likely to grow from 3.5 lakhs crore to
7.5 lakhs crore by 2025,accounting to large chunk of world
food industry.

The industry comprises of:
1. Spice Trading
2. Food Processing
3. Snacks and Confectionary
4. Dairy
5. Beverages
6. Food Chains and Restaurants

Interesting facts:

Adani Wilmar,the owner of Fortune edible oil is
planning to invest Rs.995 crore for acquisition of
Greenfield and Brownfield assets for sunflower, soya
oil projects.

Reliance Industries Ltd. Has invested rs.6250 crore in
dairy projects.

Kishore Biyani plans to open up a food park in
Tumkur,Karnataka. It would be the first of its kind and
will boost the food industry in India.

Over the forecast period, fast food in India is
expected to experience positive growth in
value terms, as operators are likely to
continue investing in various campaigns to
strengthen their brands.

Companies are also likely to introduce new
food offerings to suit the tastes of different
consumers.

Additionally, the new growth is likely to
come from Tier II and Tier III cities where
major fast food players are likely to expand
aggressively.