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Supply Chain- The McDonalds Way
A case analysis by: Group 3 PGP-HRM
How McDonalds delivered consistent quality at affordable prices in India?
McDonalds Golden Rules- Supply Chain, Supply Chain, Supply Chain
All Ingredients resourced from one or two suppliers(Except lettuce)
Suppliers expected to keep reducing cost through improved efficiency and kept the suppliers at competitive
Supply chain work begin 2 years before the launch of a new product
How McDonalds delivered consistent quality at affordable prices in India?
Use of High tech multi-temperature vans for transportation
These trucks had three level of variable refrigeration with adjustable sizes
This flexibility was key to costs of perishable items
Key Links in Supply Chain
Warehousing
Transportation
Retailing
Under Controlled Temperatures
Sources of Ingredients
Item Supplier
Cheese Dynamic Dairy India Limited, Pune
Iceberg Lettuce Trikaya Agriculture, Talegaon
Chicken patty Vista Foods, Taloja
Veg. Patty, Veg. Nuggets Kitran Foods, Taloja
Buns Cremica Industries, Phillaur
Mutton and Mutton Patties Al Kabeer, Hyderabad
Vegetable for the patties Finns Frozen Foods, Nasik
Treatment of Suppliers
Its suppliers are always “partners”, never just suppliers
Help suppliers to grow big enough to generate economies of scale and lower prices, while maintaining consistent quality
International technology and Know-how are provided by the Company
Quality Checks
McDonalds carries out quality checks at over 20 different points in cold chains
Rejection rate brought down to 2% from 8-10%
Quality assurance expert rejects the whole batch if any item does not meet even a single quality parameter
Trikaya Agriculture
A specialized nursery with a team of agriculture experts
Drip and sprinkler irrigation in raised farm beds with fertilizer mixing plant
Pre-cooling room and large cold room for after-harvest
Refrigerated trucks for transportation
Vista Processed Foods Pvt Ltd
Separate processing lines for chicken and vegetables
Capability to produce frozen foods
International standards, procedure and support services
Dynamic Dairy-Cheese
Fully automatic international standards facilities
Capability to convert milk into cheese, butter/ghee, skimmed milk, lactose
Stringent quality control measures and continuous R&D
Radhakrishnan Foodland
A one stop shop for all distribution management services
Dry and cold storage facilities to store and transport goods
Effective process control for minimum distribution cost
Thank You
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