Supply Chain Management McD Case Sturdy
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Transcript of Supply Chain Management McD Case Sturdy
SUPPLY CHAIN MANAGEMENT
Group 05:
Krishnan K 09FT-122Sanchit Gupta 09FT-133Saumya Sharma 09FT-139Shyam Ramaswamy 09FT-150Tripuraj Singh 09FT-164
From forks to farms
OMNIVORES DILEMMA & A CORPORATION’S RESPONSIBILITY
ABOUT McDONALD’S
Founded in 1948 at California
World’s leading food service retailer
31,000restaurents, 119 countries, 50 million customer each day
Started India operations in 1996
160+ restaurants across country
Company invested 6 years to develop its supply chain before they started operations in India
Local Sourcing is the turnkey for McDonald’s India
SUSTAINABLE SUPPLY CHAIN
ETHICALPurchase from suppliers that follow practices that ensure the health and safety of their employees and the welfare and humane treatment of animals
ENVIRONMENTALSourcing materials and ensuring the design of our products, their manufacture, distribution and use minimize lifecycle impacts on the environment.
ECONOMICDelivering 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
McDONALD’S BACKWARD INTEGRATIONIndirect Suppliers Primary Processing Plants &
Production 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 McDONALD’S
Logistics Transporting Warehousing
Integrated Trading (supports purchasing dept.) Value added Services Total Cost Transparency
Backward Integration•Potato Farming
•Cold Chain•Suppliers Integrations
McDONALDS INDIA SUPPLY CHAIN
KEY PLAYERS IN DISTRIBUTION
Radhakrishna foodland Trikaya Agriculture Vista Food Processors Dynamix Dairy Amrit Foods
POTATO FARMING IN GUJARAT
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
Direct selling to McCain instead of commission agents
McDONALD’S DISTRIBUTION PARTNER: RADHAKRISHNA FOODLAND
Partnership in 1993, 3 years before McDonalds India operations started
Focus on “Cold, Clean & On-time delivery” to McDonald’s
Mission of Radhakrishna: “to ensure that all McDonald’s restaurants
are supplied without interruption, products conforming to acceptable standards at lowest local cost to systems”
McDONALD’S DISTRIBUTION PARTNER: RADHAKRISHNA FOODLAND CONTD…
Designing system to handle large volumes
Engineering delivery and storage network to fulfill unique requirement of each customer
Emerging as key system player in distribution
Investment in ERP system to bring “efficiency, speed and accuracy to the system”
McDONALD’S DISTRIBUTION PARTNER: TRIKAYA AGRICULTURE
Supplier of Fresh Lettuce McDonald’s transferred its own
technology, procedures, food processing , warehousing and distribution, restaurant equipment manufacturing and operations to Trikaya.
Trikaya grows Lettuce all round the year as compared to other firms which grow it during winters only
McDONALD’S DISTRIBUTION PARTNER: TRIKAYA AGRICULTURE CONTD…
Uses high quality seeds, advance drip irrigation technology and refrigerated transportation systems
Vegetables are preserved at 20 C within 90
minutes McDonalds also helped it to supply to star
rated hotels, ships and flight kitchens all over India
McDONALD’S DISTRIBUTION PARTNER: DYNAMIX DAIRY
Primary supplier of Cheese Supplies world class highest quality
dairy products McDonald give’s and opportunity to:
Expand suppliers business Provides latest technology Exposure to advance practices Access to overseas markets for exports
McDONALD’S DISTRIBUTION PARTNER: DYNAMIX DAIRY CONTD….
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 USA& Erie foods USA, to improve quality
McDONALD’S 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: De-boning Blending Forming Coating Frying Freezing
McDonald’s supports R&D towards innovation in taste , nutritional value & convenience
McDONALDS INDIA COLD CHAIN
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..
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