Académique Documents
Professionnel Documents
Culture Documents
JAIPURIA INSTITUTE
OF
MANAGEMENT, LUCKNOW
McDonalds:
Supply Chain Management
Page 1 of 17
McDonalds: Supply Chain Management
ACKNOWLEDGEMENT
Page 2 of 17
McDonalds: Supply Chain Management
TABLE OF CONTENTS
• Introduction…………………………………………………….01
• It starts with……………………………………………………01
• Indian markets…………………………………………………02
• Pull/push process………………………………………………11
Page 3 of 17
McDonalds: Supply Chain Management
INTRODUCTION
McDONALDS IS …….
McDonalds is a name which is today synonymous with the fast food. McDonald's
is a fast food chain with restaurants all over the world with headquarters in oak
brooks, Illinois, US. It serves burgers and other fast food customized to local
tastes. 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'.
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.
Page 4 of 17
McDonalds: Supply Chain Management
INDIAN MARKET………
• It’s a huge sub-continent.
• India is 4 times more populated than the US.
• India has 300 million strong middle class people.
• India is one of the largest economy.
• Incorporated in 1993, MIPL is Mcdonalds india’s wholly owned
subsidery.
• In India, Mcdonalds open its first restaurant in vasant vihar, South Delhi.
• 50:50 joint venture with-
(1) North- Connaught plaza restaurants( owned by Mr. Vikram Bakshi)
and
(2) West- Hardcastle restaurants ( owned by Mr. Amit Jatia).
World map showing the presence of McDonalds and the year when it
started. In India it started in year 1996.
Page 5 of 17
McDonalds: Supply Chain Management
A SUPPLY CHAIN IS ……
Page 6 of 17
McDonalds: Supply Chain Management
Page 7 of 17
McDonalds: Supply Chain Management
• Procurement
• Warehousing
• Transportation
• Retailing
• picture of a temperature
controlled truck.
STEPS INVOLVED IN
COLD CHAIN
CONCEPT……
Page 8 of 17
McDonalds: Supply Chain Management
vegetables to 2ºC within 90 minutes. Then a large cold room (a refrigerated van)
was used for transportation to the distribution centers. In the van, the
temperature and relative humidity of crop was maintained at 1-4ºC and 95
per cent, respectively and the flavors and freshness are locked
At the suppliers' level, care was taken to guard against any possible
contamination or interruption in the cold chain that can break the link and have a
detrimental effect on the quality of our product.
The iceberg lettuce from Ooty, mutton patties from Hyderabad and sesame seed
buns from Punjab were all delivered to Radhakrishna Foodland Private Limited
(RFPL) distribution centre (cold storage) in its refrigerated vans. RFPL stored the
products in controlled conditions in Mumbai and New Delhi and supplied them to
McDonald's outlets on a daily basis.
Page 9 of 17
McDonalds: Supply Chain Management
Below mentioned is the data about Refrigerated vans for McDonald's distribution
Page 10 of 17
McDonalds: Supply Chain Management
• All activities from procurement of milk to changing it into cheese and then
to serve that cheese in the restaurant is all under temperature control
atmosphere
AMRIT FOODS
Page 11 of 17
McDonalds: Supply Chain Management
Page 12 of 17
McDonalds: Supply Chain Management
1. 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.
3. 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
Page 13 of 17
McDonalds: Supply Chain Management
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. One important
question can be asked to what level that push can be applied.The products will
be pushed to the restaurants where the customers automatically demand that
product and hence a pull is created.
Push stops ,
pull starts here
Fig. showing the boundry of pull and push, push last till the product reaches the
restaurant and pull starts when a customer orders the product.
The processes in the supply chain are divided into a series of cycles, each
performed at the interface between 2 successive stages of supply chain
Page 14 of 17
McDonalds: Supply Chain Management
customers
Replenishment cycle
distributor
Procurement cycle
suppliers
Page 15 of 17
McDonalds: Supply Chain Management
21 IN UTTAR PRADESH
• Noida (5),
• Ghaziabad (4),
• Mathura (1) (Highway and Drive
Thru),
• Kanpur (2),
• Meerut (2),
• Lucknow (3),
• Agra (1),
• Allahabad (1),
• Varanasi (2)
• 33 in Delhi
• 22 in Uttar Pradesh
• 11 in Haryana - Faridabad (3), Manesar
(1) (Highway and Drive - Thru),
Gurgaon (5), Karnal (1) (Highway and
Drive - Thru), Panipat (1)
• 7 in Punjab - Chandigarh (2), Ludhiana
(2), Doraha (1) (Highway and Drive -
Thru), Jalandhar (1), Patarsi (1)
(Highway and Drive - Thru)
• 3 in Rajasthan - Jaipur (3)
• 1 in Uttaranchal - Dehradun (1)
• 1 in West Bengal – Kolkata (1)
• 1 in Himachal Pradesh- Jabli (1).
Page 16 of 17
McDonalds: Supply Chain Management
Page 17 of 17