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