Supply chain management of mcdonalds (PDF)

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WeSchool, Mumbai
McDonald’s:
Supply Chain Management in QSR
Submitted To: Submitted By:
Prof. B.N. Chatterjee 02 Vipul Agrawal
06 Kush Bhatt
08 Rohan Dalvi
11 Hardik Gala
15 Shalak Joshi
35 Prabhava Nandivada
39 Sagar Pawar
55 Siddhita Thali

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TABLE OF CONTENTS
Introduction...........................................................03
It starts with..........................................................03
Some important facts.............................................03
Indian markets.......................................................03
A Supply chain is.....................................................04
Multi Layered Supply Chain..................................05
Outsourced Business.............................................09
Trust Factor...........................................................10
Sole Distribution Partner......................................10
Refrigerated Movements of Products.................11
Demand Forecasting............................................11
Food Safety and HACCP......................................12
Quality Assurance................................................12
Technology at its Best.........................................12
Conclusion...........................................................13
References...........................................................14

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 Oakbrook’s, 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 milkshake maker- multi-mixer, went to see
McDonald’s brother’s hamburger stall in California.
With an opportunity, he thought to open several of such restaurants so as to sell his
multi-mixer milk shake machine.
SOME IMPORTANT FACTS
In year 2004, McDonald’s 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.
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 subsidiary.
In India, McDonalds open its first restaurant in 1996 at Vasant Vihar, South Delhi.
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Internal Supply Chain
Purchasing Production Distribution
SUPPLIERS
A SUPPLY CHAIN IS
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 natural resources, raw materials and components into a finished product
that is delivered to the end customer.
CUSTOMER
Supply Chain Management involves the planning and management of all activities involved in
sourcing and procurement, conversion, and all logistics management activities. Importantly, it
also includes coordination and collaboration with channel partners, which can be suppliers,
intermediaries, and customers. Supply chain management integrates supply and demand
management within and across companies. Supply Chain Management is an integrating
function with primary responsibility for linking major business functions and business
processes within and across companies into a cohesive and high-performing business model.
It includes all of the logistics management activities noted above, as well as manufacturing
operations, and it drives coordination of processes and activities with and across marketing,
sales, product design, and finance and information technology.”
The primary objective of management is to fulfil customer demands through the most
efficient use of resources, including distribution capacity, inventory and labour.
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