mcdonaldsfinal-12617392001226-phpapp02

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PROJECT ONSUPPLY CHAIN MANAGEMENT

Perishable Products (Restaurant Chain)


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Group Members

Nikhil Jadhav (8126)

Asif Shaikh (8150 )

Pooja Shetty (8153)

Sunil Singh (8155)

Imran Khan (8185)Ashwin Kodati (8187)


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OBJECTIVE :

Understand the markets basic requirements of the product.

Market potential of the product

Competitive environment of the chosen product

market dynamics in terms of consumer behavior about theproduct

Detail information on the Supply Chain

Mfg locations in India

How product reaches to consumer? Criticality/significance

of the Supply chain Who are all intermediate in between of Mfg to final

consumer e.g dealer, C&F agent, depot etc

Describe role of each intermediate in the supply chain

Understand the markets basic requirements of the product.

Market potential of the product

Competitive environment of the chosen product

Market dynamics in terms of consumer behavior about theproduct

Detail information on the Supply Chain

Mfg locations in India

How product reaches to consumer? Criticality/significance

of the Supply chain Who are all intermediate in between of Mfg to final

consumer e.g dealer, C&F agent, depot etc

Describe role of each intermediate in the supply chain


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MCDONALDS CORPORATION


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McDonalds Vision, Mission and Value

Vision To be the best & leading fast food

providers around the globe

Mission To be the world's best quick service restaurant

experience. Being the best means providingoutstanding quality, service, cleanliness, andvalue, so that we make every customer in everyrestaurant smile."

Values

Our values summarized in Q.S.C & V. Providegood quality, services to customer . Havecleanliness environment when customer enjoystheir meal .The value of food product makes

every customer is smiling.


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Quick Facts About McDonalds

McDonald's was started as a drive-in restaurant by twobrothers, Richard and Maurice McDonald in California,USin the year 1937.

By mid-1950s, the restaurant's revenues had reached$350,000.

Ray Kroc, distributor for milkshake machines, expressedinterest in the business, and he finalized a deal forfranchising with the McDonald brothers in 1954.

He established a franchising company, the McDonaldSystem Inc. and appointed franchisees.

In 1961, he bought out the McDonald brothers' share for$2.7 million and changed the name of the company toMcDonald's Corporation. In 1965, McDonald's wentpublic


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McDonald's In India

1996 - First restaurant opens in India, atBasant Lok,Vasant Vihar, New Delhi.

McDonald's India is a 50 50 JV partnershipbetween McDonalds Corporation (U.S.A) and twoIndian businessman Amit Jatia (HardcastleRestaurants Private Limited, Mumbai)and VikramBakshi (Connaught Plaza Restaurants Private

Limited, Delhi). Two separate operations in Northern & Western

India.

Partners and their management teams trainedextensively in Indonesia & the U.S.

Approximately 75% of the menu available inMcDonalds in India is Indianized and specificallydesigned to woo Indian customers.

The McDonald's philosophy of QSC&V is theguiding force behind its service to the customers.


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Market potential of the McDonalds


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McDonalds has built up huge brand equity. It is the No. 1 fast-foodcompany by sales, with more than 31,000 restaurants servingburgers and fries in almost 120 countries. Sales, 2007 (11,4009million), 5.6% sales growth

Joint ventures with retailers (e.g. supermarkets). Consolidation of retailers likely, so better locations for franchisees.

Respond to social changes - by innovation within healthier lifestylefoods. Its move into hot baguettes and healthier snacks (fruit) hassupported its new positioning.

Use of CRM, database marketing to more accurately market to itsconsumer target groups. It could identify likely customers (based onmodeling and profiles of shoppers) and prevent brand switching.

Strengthen its value proposition and offering, to encouragecustomers who visit coffee shops into McDonalds.

The new formats, McCafe, having Wifi internet links should help

in attracting segments. Also installing childrens play-parks and itsfocus on educating consumers about health, fitness.

Continued focus on corporate social responsibility, reducing theimpact on the environment and community linkages.

International expansion into emerging markets of China and India.


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Competitive environment of theRestaurant Chain (MCD)


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Competitive environment


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McDonalds India: Channel Network


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McDonalds India: Network &

competitors


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How product reaches to consumer?

Criticality/significance of the Supply chain


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Geographically Diverse suppliers: Ensuring stringent quality standards


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Supplier performance index

Import

Breath of supply

process control

equipment

No direct control over issues, positive influence by raising questions,

bringing people to the table and encouraging improvement

The McDonalds Supply Chain


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VALUE CHAIN ANALYSIS OF

MCDONALDS


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Inbou

nd

Logistics

Organizing the supply

of food and materials to

restaurants through

approved third partylogistics operators.

Production in huge

plants denoted

exclusive to McDonalds

control fooddistribution and

packaging system

Inbound

logistics


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Technological Development

Human Resource Management

Firm Infrastructure

Procurement

Inbound

Logistics

Operations

Outbou

nd

Logistics

Se

rvice

Relatively Few

Management Layers toReduce Overhead

Effective Training Programs

to Improve Worker

Efficiency and Effectiveness

Timing of Asset

Purchases

Efficient Plant

Scale to Minimize

Manufacturing

CostsSelection of Low

Cost Transport

Carriers

Delivery Schedule

that Reduces

Costs

Products Priced to

Generate Sales

Volume

Small, Highly

Trained Sales

Force

Investments in Technology in order

to Reduce Costs Associated with

Manufacturing Processes

Frequent Evaluation Processes to

Monitor Suppliers Performances

Policy Choice of

Plant Technology

Organizational

Learning

Efficient Order

Sizes

Operations

R&D in field research

needs of end users.

quality development in

collaboration with good

suppliers

Forward integration:

through franchisees with

control over store

presentation, menu items

etc. and enhanceparticipation in process

improvement

Operations


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Firm Infrastructure

Procurement

Outbou

nd

Logistics

Marketing

&Sales

Se

rvice

Selection of Low

Cost Transport

Carriers

Delivery Schedule

that Reduces

Costs

National Scale

Advertising

Products Priced to

Generate Sales

Volume

Small, Highly

Trained Sales

Force

Effective Product

Installations to

Reduce Frequency

and Severity

of Recalls

Frequent Evaluation Processes to

Monitor Suppliers Performances

Efficient Order

Sizes

Interrelationships

with Sister Units

Outbound

Logistics

Is the concern of the

franchisee.

Outbound logistics

are growing as a part

of McDonalds

recycling system

integrating in the

logistics ofdistribution center

Outbound

logistics


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Firm Infrastructure

Procurement

Inboun

d

Logistics

Operations

Outbou

nd

Logistics

Marketing

&Sales

Se

rvice

Marketing

&Sales

Long term marketing

objectives are broken

down into shorter term

measurable targets, which

McDonald uses asmilestones.

Country teams are given

autonomy in marketing

mix decision.

Advertising & PR is

outsourced

(Mudra agency

in India)

Marketing


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Firm Infrastructure

Procurement

Inboun

d

Logistics

Operations

Outbou

nd

Logistics

Marketing

&Sales

Se

rvice

Se

rvice

Services

provided by thecompanies

enrollment

standards

Service


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Firm Infrastructure

Procurement

Inboun

d

Logistics

Operations

Outbou

nd

Logistics

Marketing

&Sales

Se

rvice

Procurement

Sought partners with expertise on down trade distribution

Procurement


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Firm Infrastructure

Procurement

Inboun

d

Logistics

Operations

Outbou

nd

Logistics

Marketing

&Sales

Se

rvice


Technology and development research in quality assurance, and packing

readdressed at lower cost, faster delivery chain system and process control

equipments, recycling system.

R & D


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Firm Infrastructure

Procurement

Inboun

d

Logistics

Operations

Outbou

nd

Logistics

Marketing

&Sales

Se

rvice


HRM specialists in R&D and expertise in food formulation, education to

raise awareness of issues and raise demand. The addressing

environmental issues and CRS.

HRM


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Support

Activities



Firm Infrastructure

Inboun

d

Logistics

Operations

Outbou

nd

Logistics

Market

ing

&Sal

es

Se

rvice

Firm Infrastructure

Strong real estate portfolio.International organization more than 50000 employees works in more

than 50 countries,

INFRASTRUCTURE


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Process:


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Who are all intermediate in between of Mfg to

final consumer.

Describe role of each intermediate in the supplychain


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Vital links of Mc Donalds cold chain.

McDonald's spent a few

years setting up a unique

Cold Chain.

The Cold Chain is necessary

to maintain the integrity of

food products and retain

their freshness andnutritional value.

Procurement

warehousing

Transportation

Retailing of

food product


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SUPPLIERS Trikaya Agriculture

Supplier of Iceberg Lettuce

Vista Processed Foods Pvt. Ltd.

Supplier of Chicken and Vegetable range of products

(including Fruit Pies)

Dynamix Diary

Supplier of Cheese

Amrit Food

Supplier of long life UHT Milk and Milk Products for Frozen

Desserts


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Distribution

Radhakrishna Foodland

Distribution Centres and cold storages.

Completely dedicated distribution and supply chain. Matching supplier production with deliveries using ERP.

Quality inspection Program, quality check at 20 differentpoints in supply chain.

HACCP(Hazard analysis critical control points) foodsafety standards emphasizing prevention of faults.


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The five main performance objectives

are:

Speed

Cost

Quality

Dependability Flexibility


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Documents

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