SUPPLY CHAIN MANAGEMENT
Group 05: Krishnan K Sanchit Gupta Saumya Sharma Shyam R amaswamy Tripuraj Singh
09FT-122 09FT-133 09FT-139 09FT-150 09FT-164
From forks to farms
OMNIVORES
DILEMMA & A CORPORATIONS RESPONSIBILITY
ABOUT McDONALDS ´
Founded in 1948 at California
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World·s leading food service retailer
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31,000restaurents, 119 countries, 50 million customer each day
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Started India operations in 1996
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160+ restaurants across country
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Company invested 6 years to develop its supply chain before they started operations in India
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Local Sourcing is the turnkey for McDonald·s India
SUSTAINABLE SUPPLY CHAIN
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ETHICAL
Purchase from suppliers that follow practices that ensure the health and safety of their employees and the welfare and humane treatment of animals ENVIRONMENTAL Sourcing materials and ensuring the design of our products, their manufacture, distribution and use minimize lifecycle impacts on the environment. ECONOMIC Delivering affordable food, engaging in equitable trade practices, limiting the spread of agricultural diseases, and positively impacting the communities that our suppliers operate in.
GLOBAL REVENUES
3 PILLARS OF
McDONALDS SUPPLY CHAIN
McDONALDS BACKWARD INTEGRATION Indirect Suppliers ´ Primary Processing Plants & Production «
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Plants: Operate Facilities such as grain mills and abattoirs Farms & Ranches: Raise cattle; grow lettuce, wheat and other ingredients.
Direct Suppliers ´ Distribution Centers: Coordinate purchasing and distribution to restaurants. ´ Final Processing Facilities: Produce finished products like meat patties, buns and beverages. McDonald's Restaurants
DELIVERING VALUE AT EACH STEP
ONE-STOP-SHOPPING
LEAN LOGISTICS SOLUTION TO McDONALDS
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Logistics « «
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Transporting Warehousing
Integrated Trading (supports purchasing dept.) Value added Services Total Cost Transparency
McDONALDS INDIA SUPPLY CHAIN Backward
Integration
Potato Farming Cold Chain Suppliers Integrations
KEY PLAYERS IN DISTRIBUTION ´
Radhakrishna foodland
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Trikaya Agriculture
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Vista
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Dynamix Dairy
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Amrit Foods
Food Processors
POTATO FARMING IN GUJARAT ´
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Company spent 450 cr and 6 years before starting its operations: shows how important the supply chain is for the company McDonalds used its pioneered Cold Chain technology to preserve freshness, crispiness and nutritional value of products McCain Foods pvt ltd(largest french fry company in the world) started working closely with farmers in Gujrat Interacted with ergonomists and field assistants to implement best practices
POTATO FARMING IN IMPROVEMENTS CONTD..
Irrigations systems ´ Sowing seed treatments ´ Planting methods ´ Fertilizers applications ´ Better storage methods ´
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Direct selling to McCain instead of commission agents
McDONALDS DISTRIBUTION PARTNER: RADHAKRISHNA FOODLAND ´
Partnership in 1993, 3 years before McDonalds India operations started
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Focus on ´Cold, Clean & On-time deliveryµ to McDonald·s
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Mission of Radhakrishna: «
´to ensure that all McDonald·s restaurants are supplied without interruption, products conforming to acceptable standards at lowest local cost to systemsµ
McDONALDS DISTRIBUTION PARTNER: RADHAKRISHNA FOODLAND C ONTD ´
Designing system to handle large volumes
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Engineering
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Emerging
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Investment in ERP system to bring ´efficiency, speed and accuracy to the systemµ
delivery and storage network to fulfill unique requirement of each customer as key system player in distribution
McDONALDS DISTRIBUTION PARTNER: TRIKAYA AGRICULTURE ´
Supplier of Fresh Lettuce
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McDonald·s transferred its own technology, procedures, food processing , warehousing and distribution, restaurant equipment manufacturing and operations to Trikaya.
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Trikaya grows Lettuce all round the year as compared to other firms which grow it during winters only
McDONALDS DISTRIBUTION PARTNER: TRIKAYA AGRICULTURE C ONTD ´
Uses
high quality seeds, advance drip irrigation technology and refrigerated transportation systems 0
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Vegetables
are preserved at 2 C within 90 minutes
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McDonalds also helped it to supply to star rated hotels, ships and flight kitchens all over India
McDONALDS DISTRIBUTION PARTNER: DYNAMIX DAIRY ´
Primary supplier of Cheese
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Supplies world class highest quality dairy products
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McDonald give·s and opportunity to: «
Expand
suppliers business
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Provides latest technology
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Exposure
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Access to overseas markets for exports
to advance practices
McDONALDS DISTRIBUTION PARTNER: DYNAMIX DAIRY C ONTD. ´
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High-tech 100% computer controlled automation equipments Setup cooling locations at a distance of 1-2 kms from collection centers McDonalds educated Milk producers with latest concepts, hygiene and cleanliness, regulated feeding, disease control and genetic improvement. Tie-up with Schreiber foods to improve quality
Erie USA&
foods USA,
McDONALDS DISTRIBUTION PARTNER: VISTA PROCESSED FOODS PVT. LTD. ´ ´ ´
Main supplier of Chicken and Vegetable products Refrigeration system of frozen food at -350C McDonalds helped Vista Processed Foods to process food which includes: « « « « « «
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De-boning Blending Forming Coating Frying Freezing
McDonald·s supports R&D towards innovation in taste , nutritional value & convenience
McDONALDS INDIA COLD CHAIN ´ ´
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Spreading spirit of Enterprise all over India Commitment to provide quality products and fast service Translating benefits to the grass root level Took 6 years to setup in India Focused on long term relationships with its suppliers Educated and trained suppliers on reduction of food wastage due to lack of proper infrastructure
McDONALDS INDIA COLD CHAIN CONTD.. ´ ´ ´
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Cut down operational expenses Preserve nutritional values Improved procurement, warehousing and transportation From field to 20C in 90 minutes Flavor and freshness locked at -350C Continuous development of infrastructure and technology of suppliers Provided support to its suppliers to grow their business