Mcdonalds the world’s largest retailer of burgers and fries ,from its
humble beginnings in San Bernardino ,California,today it has become the world
leader in the fast food segment.It was the vision of Ray Croc that transformed
the drive-in restuarants owned by the
Mcdonald brothers into the iconic
retail chain which has become synonymous with good quality,service, and
efficient delivery,indeed it is a force to reckon with.Serving about 64 million
customers daily,and having a strong presence in 119 countries ,has made the Big
mac the “Burger King”,so much so that “The Economist” has created a big mac
index as a litmus test of the PPP(Purchasing Power Parity) and the exchange
rate between currencies.The UBS international has a different version of the
index which measures the time which an average worker has to spent in a country
to earn a big mac.
Behind this success story is the
dedicated and ingenious supply chain which makes the organizational structure
work like a well-oiled machine.This article will primarily deal with the
analysis of the supply chain of macdonalds India.Even before Mcdonalds opened
its first restaurant in the country it had spent 450 crores to set up its
logistics and supply chain and get its act together.This supply chain is often
dubbed as the “cold chain” and is achieved by partnership with a series of
local suppliers this is a classic example of BPO and shows how the company has
used it expertise in the field of raw material extraction to achieve its
end,most of its facilities were provided by its Hamburger University in Oak
brook,Illinois.
Salient
Features of the Cold Chain:
1.World Class Infrastructure at all facilities.
2.The produce is locally procured(except the toys which are exported from
China).
3.Perfection Coordination between the different suppliers and the
distribution centres.
4. A dedicated Quality Inspection Programme with over 20 checks at
different points instant rejection of the produce if found adulterous or below
standard.
5. Hazard Analysis at Critical Control Points(HACCP).
Drawbacks
of the supply chain:
1.Too widely distributed across the country giving rise to logistical
problems.
2.The distribution centres are scattered in specific corners ( Noida,Mumbai,Kolkata,Bangalore)
3. Absence of streamlined distribution system in the North-east has
stopped any expansion in the region.
4.Stretching the supply lines have resulted not resulted in any expansion
beyond Tier-I and some Tier-II
cities.
Brick by Brick
analysis of the cold chain…
The Macarrow
List
of Materials and their supply from different
corners of the country:
1.Lettuce:Pune,Delhi,Ooty,Nainital.
2.Buns: Phillaur and Punjab.
3.Milk and Cheese: Punjab,Maharashtra.
4.Vegetable:Maharashtra and Gujarat.
5.Sauce:Phillaur,Punjab, Bector Foods,HUL.
6.Sesame Seeds: Haryana.
The Mac Speaks for itself
The Mac Speaks for itself
Summary Of Important Production and Distribution networks:
Dynamix Dairy Industries (Supplier of Cheese):
Dynamix has brought immense benefits to farmers in Baramati, Maharashtra by setting up a network of milk collection centres equipped with bulk coolers. Easy accessibility has enabled farmers augment their income by finding a new market for surplus milk. The factory has:
- Fully automatic international standard processing facility.
- Capability to convert milk into cheese, butter/ghee, skimmed milk powder, lactose, casein & whey protein and humanized baby food.
- Stringent quality control measures and continuous Research & Development
Trikaya Agriculture (Supplier of Iceberg Lettuce):
Implementation of advanced agricultural practices has enabled Trikaya to successfully grow specialty crops like iceberg lettuce, special herbs and many oriental vegetables. Farm infrastructure features:
- A specialized nursery with a team of agricultural experts.
- Drip and sprinkler irrigation in raised farm beds with fertilizer mixing plant.
- Pre-cooling room and a large cold room for post harvest handling.
- Refrigerated truck for transportation.
Trikaya Agriculture, a major supplier of iceberg lettuce to McDonald's India, is one such enterprise that is an intrinsic part of the cold chain. Exposure to better agricultural management practices and sharing of advanced agricultural technology by McDonald's has made Trikaya Agriculture extremely conscious of delivering its products with utmost care and quality. Initially lettuce could only be grown during the winter months but with McDonald's expertise in the area of agriculture, Trikaya Farms in Talegaon, Maharashtra, is now able to grow this crop all the year round.
Vista Processed Foods Pvt. Ltd. (Supplier of Chicken and Vegetable range of products including Fruit Pies)
A joint venture with OSI Industries Inc., USA, McDonald's India Pvt. Ltd. and Vista Processed Foods Pvt. Ltd., produces a range of frozen chicken and vegetable foods. A world class infrastructure at their plant at Taloja, Maharashtra, has:
- Separate processing lines for chicken and vegetable foods.
- Capability to produce frozen foods at temperature as low as -35 Degree Cel. to retain total freshness.
- International standards, procedures and support services.
Ongoing R&D, both locally and in the parent companies, work towards innovation in taste, nutritional value and convenience. These products, besides being supplied to McDonald's, are also offered to institutions like star-rated hotels, hospitals, project sites, caterers, corporate canteens, schools and colleges, restaurants, food service establishments and coffee shops. Today, production of better quality frozen foods that are both nutritious and fresh has made Vista Processed Foods Pvt. Ltd. a name to reckon within the industry.
Radhakrishna Foodland (Distribution Centres for Delhi and Mumbai)
An integral part of the Radhakrishna Group, Foodland specializes in handling large volumes, providing the entire range of services including procurement, quality inspection, storage, inventory management, deliveries, data collection, recording and reporting. Salient strengths are :
- A one-stop shop for all distribution management services.
- Dry and cold storage facility to store and transport perishable products at temperatures upto -22 Degree Cel.
- Effective process control for minimum distribution cost.
Amrit Food (Supplier of long life UHT Milk and Milk Products for Frozen Desserts)
Amrit Food, an ISO 9000 company, manufactures widely popular brands –
Gagan Milk and Nandan Ghee at its factory at Ghaziabad, Uttar Pradesh.
The factory has:
- State-of-the-art fully automatic machinery requiring no human contact with product, for total hygiene.
- Installed capacity of 6000 ltrs/hr for producing homogenized UHT (Ultra High Temperature) processed milk and milk products.
- Strict quality control supported by a fully equipped quality control laboratory.
Also worth mentioning is the other suppliers like McCain India Pvt Ltd which has provided the Gujarat farmers with the know how to cultivate its high starch content potato for the french fries.Cremica, Mrs Bector and Sons provide the sauce.Also HUL green foods Pvt Ltd is another important name in the industry.
This partnership is a win-win situation for both the company and the local suppliers,because the company gets quality products and the suppliers the know-how and the state of the art facilities to meet the International standards.Some of the suppliers like Vista food Pvt Ltd supply their produce to several five star hotels,caterers,canteens and even export it to the gulf.
Map of the Supply Chain Network
The Mac-a-way.....
Map Showing Mcdonald's India Stores
1.Maharaja Mac. 
2.French Fries.
3.Chicken Mcnuggets
4.Paneer salsa wrap.
"Quality,Service,Cleanliness,Values, if I count the number of times I said these words then they will be large enough to build a bridge accross the Atlantic"- Raymond Croc.
SO That all Folks............
