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Presented by:

Raghul. M.G
• Two brothers, Richard and Maurice McDonald started the company as a
barbeque restaurant in1940, started using production line principle in 1948
and finally sold the business to a businessman Ray Kroc, who expanded it
widely. It is headquartered in Illinois, Unites States of America.
• McDonalds 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. 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 is the leading global foodservice retailer with more than 30,000 local
restaurants serving 52 million people in more than 100 countries each
• McDonald's Corporation is the world's largest chain of fast food
restaurants, serving nearly 47 million customers daily.
In year 2004, McDonalds was the largest marketer of fast food
in the world.
31000+ restaurants.
47 million customers served daily.
1999- 8th most valuable brand.
2000- ranked among top 100 firms in the world

In India:

Incorporated in 1993, MIPL is McDonalds India’ wholly owned

In India, McDonalds open its first restaurant in Vasant
Vihar, South Delhi.
 McDonald's is the world's leading food service retailer.

 It has more than 33,000 restaurants across the globe.

 It serves more than 67 million customers each day.

 It has its presence in 118 countries.

• Supply chain is extensive and
• Efficient, safe and quality food at an
affordable price.

• Large number of direct suppliers –

companies that make or deliver final
products to their restaurants.

• Large number of indirect suppliers

– companies and farms that grow or
process the ingredients that are
eventually delivered to their direct
 McDonald's serves 1% of the world's population every day.

 It currently Employs more than 20,00,000 employees.

 McDonald's sells more than 75 burgers every second.

 McDonald's' iconic golden arches are recognized by more people than the

 McDonald's is the world's largest distributor of toys, with one included in 20%
of all sales.

 Ronald McDonald is the 2nd most recognized public figure after Santa Claus.
In a fast food business, supply chain
is of highest

It helps in minimizing cost, cut down

the delivery time, improve the profits
and at the same time maintain the
highest standards.

McDonalds developed local

businesses that supply them the
products and that too of highest
Mc Donalds infused around Rs. 400 crores in the supply and delivery
chain before setting up their first restaurant in India.

Mc Donalds have around 38 suppliers which are on long term

basis categorized as follows :-
Tier-I and Tier-2 suppliers :-
In Tier-I there are 14 core suppliers-provide processed products ,
French fries, potato wedges
In Tier-2 suppliers there are growers and processors who provide
lettuce poultry items vegetable patties
The flow of ingredients are from Tier-2 to Tier-I suppliers who process
McDonalds E-Procurement System is the main reason for their successful
supply chain management.

E- Digital : (Internet procurement site designed for McDonald's

MAC Corporation's 34,000 franchises)

E-MAC Digital Company is E-Procurement website which is jointly owned

by McDonalds and Accel-KKR Internet Co.

It is so efficient that it provides the backbone not only to all the logistics
but the whole McDonalds supply chain management.

It is a procurement hub launched in 2001 that allows all of McDonald's

franchises to buy everything needed as per the demand.
• In the process of procuring a product, a
typical McDonald’s franchise restaurant
places an order through E-MAC digital

• The order is sent to the suppliers. Suppliers

order is processed and managed by the

• The logistics sends the order of the products

to the franchise restaurants. It is the
responsibility of the E-MAC and logistics that
the products are sent to the restaurant.

• All the above, steps are handled and executed by

the E-MAC digital.
It is the movement of materials from suppliers and vendors into
production processes and storage facilities.

Based on the demand forecast, Manager orders the distributors on

daily basis.

Distributors store all the raw materials, in its own cold stores
and delivers material to the restaurant.

DC also received the DQMP (Distribution, Quality, and Management

Process) Certification from USA Audit Team.

• Outbound logistics is the process related to the

storage and movement of products from the end of
the production line to the users end.

• When customers enter the restaurant, they go to

the counter, give their order, which they are served
within a single minute.
• A cold chain is a temperature-controlled supply chain.

• It is used help extend and ensure the shelf life of products such as fresh
agricultural produce, processed food.

McDonalds’ entire network supply-chain consists of movement

of goods through a cold chain

An interesting and innovative feature of this cold chain is that the same truck can
carry products at different temperatures
ranging from:

• Frozen products at -18C to -25C

• Chilled products from 1C-4C
• Dry products at ambient temperatures
Concept of Cold Chain
A cold chain is a temperature-controlled supply
chain unbroken cold chain is an uninterrupted
series of storage and distribution activities which
maintain a given temperature range. It is used help
extend and ensure the shelf life of products such as
fresh agricultural produce, processed foods.
It was started by McDonalds in India.
It took 6 years.
Benefited to both consumers as well as farmers.
Helped to maintain freshness and nutritional value
of raw materials.
Steps involved in cold chain:


All the above activities took place in temperature

controlled atmosphere

Dynamix dairy industry (cheese)

Trikaya agriculture (iceburg lettuce)
Vista processed food pvt ltd. (chicken and veg range
of products
Radhakrishana food land(distribution centre- delhi
and mumbai)
Amrit food(long life UHT milk and milk products for
frozen desserts)
McDonald’s Distribution
McDonalds Distribution systems McDonald uses three types of distribution

• Franchising

• Licensing

• Joint ventures
McDonald's Competitors
• Subway

• Kentucky Fried Chicken (KFC)

• Mr. Burger

• Burger King