Supply chain management in Mc Donalds

SUBMITTED BY : Aditi Saxena Mandeep singh Megha saxena Rahul Gupta Rohit Singh Shivansh Bharadwaj Vipin singh tomar 2010 mba_01 2010mba_13 2010 mba_14 2010 mba_21 2010 mba_24 2010 mba_25 2010 mba_29

INTRODUCTION
McDonald's is a fast food chain with restaurants all over the world with headquarters in oak brooks, Illinois, US Its philosophy has been 'one world, one burger;' which meant that the burger must be consistent in terms of cost and quality

To meet such high standards, it was essential to have an excellent supply chain management system
In India, McDonald's had a very well orchestrated supply chain, called the 'Cold Chain'.

INTRO
IT STARTS WITH. In 1954, Ray Kroc, 52, distributor of milk shake maker- multimixer, went to see Mcdonalds brothers hamburger stall in California. With an opportunity, he thought to open several of such restaurants so as to sell his multimixer milk shake machine

SOME IMPORTANT FACTS In year 2004, mcdonalds was the largest marketer of fast food in the world. 31000+ restaurants. 47 million customers served daily. 1999- 8th most valueable brand. 2000- ranked amoung top 100 firms in the world

SUPPLY CHAIN
A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform naturalresources, raw materials and components into a finished product that is delivered to the end customer. The primary objective of supply chain management is to fulfill customer demands through the most efficient use of resources, including distribution capacity,inventory and labor.

SUPPLY CHAIN IN MC DONALDS INDIA.

Mc Donalds Supplier

LIST OF SUPPLIERS
DYNAMIX DAIRY INDUSTRY (SUPPLYING CHEESE)

Firm from baramati, maharashtra Milk collection centres with bulk coolers International standard and processing facilities Stringent quality control measures

TRIKAYA AGRICULTURE (SUPPLYING ICEBURG LETTUCE)

Advanced agricultural practices helps them to grow speciality crops like lettuce and herbs. Pre cooling room and large cold room for post harvest.
For chicken, temperature maintained is -35 degrees Celsius. Refrigerated transportation.
Specialized in handling large volumes Both dry and cold storage facility An ISO 9000 firm Supplies long life UHT milk/ milk products for desserts

VISTA PROCESSED FOOD PVT. LTD. (FOR SUPPLYING FROZEN CHICKEN AND VEG PRODUCTS) RADHA KRISHNA FOODLAND (DISTRIBUTION CENTRE)

AMRIT FOODS

DIFFERENT ITEMS ARE SOURCED FROM DIFEERENT GEOGRAPHY IN INDIA..

Supply Chain Integration

THREE LOGISTICAL DRIVERS.

Facilities- they are the actual physical location in the supply chain network where the product is stored, assembled, or fabricated. The two main facilities are production sites and the storage sites. In McDonalds, because the products are perishable, storage time was minimal so as to reduce the wastage. Transportation- it is the process where the inventory is moving from place to place. Refrigerated vans are used here in this case. Inventory- it includes raw materials, work in progress, and finished goods within a supply chain.

THREE CROSS-FUNCTIONAL DRIVERS

Sourcing- who will perform which activity( production, storage, transportation, and distribution) in a supply chain. This activity was taken care by mcdonalds corporation. Information- it includes data and analysis related to facilities, inventory, transportation, cost, prices and customers in the whole supply chain. This activity was done by Radhakrishana food land that acts as their distribution centre. Pricing- how much a firm could charge for a particular goods and services that it makes available in the supply chain. Here it was done by the mcdonalds only

PULL/PUSH PROCESS
Pull processes are initiated by a customer order while the push processes are initiated by the anticipation of customer order
Mcdonalds use both pull as well as push process, to a certain extent push is created and after that level the pull created by the firm did its task

Various Suppliers supplies the materials

Products delivered to Distribution centres

Products delivered to Distribution centres
Push stops pull starts here

Customer order at restaurant

SUPPLY CHAIN PROCESS CYCLE

customers Customer order cycle Retailer/ McDonalds restaurants Replenishment cycle distributor Procurement cycle suppliers

INVENTORY MANAGEMENT
MCDONALDS WORKS ON JIT MODEL

IT DOSE NOT BEGIN TO COOK ITS ORDER UNTIL CUSTOMER HAS PLACED AN ORDER

CONTINIOUS INVENTORY CONTROL SYSTEM FOR UNCOOKED MATERIAL

Inventory control software

MCDONALDS USES THE INVENTORY CONTROL SOFTWARE TO TRACK THE INVENTORY OF UNCOOKED MATERIAL
MINIMIZE COST TO MAINTAIN INVENTORY IDENTIFICATION FOR ITEM CODES,SERIAL NO.

AUTOMATICALLY TRACKING OF REORDER

INEXPENSIVE,ADVAN CE AND FASTEST IN USE

COMPLEMENTORY WITH ALL WINDOWS SYSTEM

FLOW DIAGRAM
CUSTOMER ORDER PLACED BY CUSTOMER TRACKING OF COSUMED MATERIAL BY SOFTWARE

REORDER IF INVENTORY FALLS

AUTOMATIC UPDATION OF INVENTORY