Distribution and Supply

Chain Management of
McDonalds

St. Francis Institute of Management and Research

Presented By:
Kaushal Mandaliya-

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Pratish L Manchalwad-

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Malcolm Dsouza-

64

Rahul K Hanumante-

82

Flow of the Presentation

McDonalds History
McDonalds In India
Product Mix
Co-Branding
Who are the suppliers ?
Supply chain of McDonalds
Technology used in McDonalds
Distribution Model
Conclusion

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.
McDonald'sis the world's largest chain of fast food restaurants,
serving around 68 million customers daily in 120 countries
across 35,000 outlets.
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McDonalds in India
1996- First restaurant opens in India, at Vasant vihar, New Delhi.
McDonalds India is a 50-50 JV partnership between McDonalds
Corporation(USA) and two Indian businessmen Amit Jatia
(Hardcastle Restaurants Pvt Ltd, Mumbai) and Vikram Bakshi
(Cannaught plaza restaurants Pvt Ltd, Delhi)
Two separate operations in Northern & Sothern India.
McDonalds is present in 40 Indian cities with more than 400
restaurants and serves 650,000 customers daily.
Approximately 75% of the menu available in McDonalds in India
is Indianized and specifically designed to Indian customers.
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Product Mix

Veg Menu

Non Veg Menu

Beverages

Frozen Desert

Co-Branding
McDonalds has major tie-ups with various companies
as their co-branding strategy.
Few are:
-Coco-cola
-Cadbury
-Hotwheels

Amrit Food - Dairy Mixes

supplier of Dairy based products (Soft Serve Mix
and Milk Shake Mix)
Amrit Food has also deployed an automatic bottle
filling line and superheated water spray sterilizer
(Retort), for long shelf life bottled milk drinks.

Mrs. Bectors Food Specialities Ltd.

Liquid Condiments, Batter & Breading
It runs two facilities dedicated to its operations in
Delhi and Mumbai with an investment of around
INR 10 crores.
Each facility has the capacity to produce over
250000 buns/ day.
The liquid condiments, batter and breading units
are located in Phillaur, Punjab.
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Schreiber Dynamix Dairies Ltd.

Schreiber Dynamix Dairies Ltd is a Joint Venture
between Schreiber Foods USA (51%) and K.M.
Goenka group (49%).
Located at Baramati, Maharashtra
Full automatic international standard facility
Capacity to convert milk in to butter, chees
skimmed milk powder, lactose.
Stringent quality control and measures.
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Vista Processed Foods Chicken and

Vegetable Range of Products
Vista is McDonald's supplier for the chicken and
vegetable and pie/puff range of products in India.
Located at Taloja, Maharashtra
Its over an area of 2000 sq. Metres.
Separate processing line for Chicken and
vegetarian food
Capacity to produce at temperature as low as -35
degree Celsius to retain freshness
Fresh product Division- Iceberg Lettuce

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Mc Food Private Ltd- French

Fries
The right quality of Potato was not available In
India
McDonalds needs Processed-grade Potatoes
Mc food limited joined hands with farmers of
Gujarat and Maharashtra.
Mc food limited is world largest French fries
company In the world- It has 55 processing plants
on 4 continent
Mc food limited Export more than 80 countries
worldwide.

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Next time when you will have A

McDs Burger just remember
that.

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Maharasht
ra

Supply Chain
DC
DC 1
1
Noida
Noida

Suppliers
Suppliers

Distribution
Distribution
Centre
Centre

DC
DC 2
2
Mumbai
Mumbai

DC
DC 3
3
Bangalore
Bangalore

DC
DC 4
4
Kolkata
Kolkata

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Supply Chain
Restaura
nt 1

Beverage
Beverage
Partner
Partner Coke
Coke
(Directly
(Directly
supplies
supplies all
all
restaurants)
restaurants)

Restaura
nt 6

Restaura
nt 2

Distributi
on Centre

Restaura
nt 5

Restaura
nt 3

Restaura
nt 4

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Supply Chain

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Order Procurement
Pull Supply Chain system

Requisition
Order

Restaura
nt to DC

DC to
supplier

Producti
on

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Technology In SCM
Suppliers use SAP
Distribution Centres use RAMCO Marshall ERP with
Cobra software
Mc Delivery

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Mc Delivery

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Distribution
Matching supplier production with deliveries to meet schedules
and restaurant needs
3 centralized distribution centers at Mumbai, delhi and Kolkata
Emphasis on economies of scale
-High storage volumes
QIP (Quality Inspection Program)
HACCP (Hazard Analysis Critical Control Point)
-Food safety standards emphasizing prevention of faults rather
than detection through inspection
No knife in restaurants
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Radhakrishna
Foodland Ltd
Distribution Centers and cold storages.
Completely dedicated distribution and supply chain
Specialized in providing
services
-Procurement
-Quality inspection
-Storage
-Inventory management
-Deliveries
-Data collections
-Recording and reporting

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Radhakrishna
Foodland Ltd
Dry and cold storage facility
- Transportation trucks
maintained at 22 C
- Implemented ERP software.

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Conclusion
McDonalds Supply Chain is quite uniquely
handled with least number of employees on
McDonalds payroll.
With ever growing business of fast food
McDonalds has laid down its systems efficiently
and expanding at enormous speed.
The control on outsourced entities is
commendable.
The model can be replicated in other sectors as
well to bring out the higher efficiency in the
business.
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Thank you

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