Supply Chain of

C Donalds
Shailendra Singh Rajput MBA-AB 2011-13

Quick facts about

C Donalds:

McDonald's was started by two brothers, Richard and Maurice McDonald in California, US in the year 1937.
Ray Kroc, distributor for milkshake machines, expressed interest in the business, and he finalized a deal for franchising with the McDonald brothers in 1954.

In 1961, he bought out the McDonald brothers' share for $2.7 million and changed the name of the company to McDonald's Corporation. In 1965, McDonald's went public
Reference: mcdonalds.com

C Donalds history India:

Entered in India 1996. India is 50-50 JV partnership between C Donalds Corp. USA & two Indian businessman Amit Jatia and Vikram Bakshi. Trained extensively with their Indian management team in Indonesia and USA before launch. The entire menu was changed. 90% of C Donalds business is owned and run by independent franchisees in India.
Reference: mcdonaldsindia.com

Key business drivers & potential:

Pricing
Food Innovation

Operation Excellence Brand Trust

Extended Hours

Distribution Centers:

38 supplier throughout India & several standalone restaurants working with it for various requirements
Reference: mcdonaldsindia.com

Where the food comes from:

C Donalds Supply Chain

Reference: logistics.bafree.net

Mc Donalds India sources its ingredients from local suppliers who are an integral part of the cold chain.

Refrigerated trucks with multi-temperature facility divided into 3 zones- freezer,chiller, and ambient to ferry product demanding varying temperatures from supplier location to the distribution centre.

Reference: National Retail Federation -Case Study

Distribution centre is also divided into multi-temperature zones , as are the trucks for storing products. With freezer at 0 degree F to 33 degree F , chiller at 33 degree F to 40 degree F, and room temperature.

Reference: National Retail Federation -Case Study

Restaurants have in built cold storage units subdivided into same aforesaid zones freezer, chiller ,and ambient. National Retail Federation Reference:
-Case Study

38 suppliers across the country

Food /nonfood: Frozen , chilled & any dry goods

Food /nonfood: Frozen , chilled & any dry goods

Procurement logistic

Warehousing & packaging

Distribution logistics

Consumer/outlets

C Donalds Supply Chain

(160 restaurants across the country)

Supply of ingredients:
Sesame seeds Ghaziabad, UP
Special vegetarian sauce (Eggless) Quaker Cremica, Phillaur,Punjab Batter & Breading Cremica Industries , Ludhiana ,Punjab

Buns Shah & sons, Khopoli ,MH & Cremica Industries, Noida Iceberg lettuce Trikaya Agriculture , Talegaon MH Meena Agritech ,Delhi Ferrocoa Farm, Dehradoon

Vegetable Patty (Made from fresh Peas, Carrots,Green beans, Potatoes and Rice) Kiltran foods, Taloja MH
Reference: mcdonaldsindia.com

The basic purpose of a supply chain

is to coordinate the flow of materials, services, and information along the elements of the supply chain to maximize customer value.

Ray Kroc

And this is what we did.

LESSONS:
Look before you leap. (Mc Donalds did an extensive research before venturing into this nation for more than 4 years and put in 450 crores plus during those times, to develop its supply chain) In Rome , do as Romans do! Mc Donalds customized its products to Indian taste-buds, also to connect to the public, avoided pork and beef products. In addition the processing lines for vegetable and non-vegetable products are kept separate.

Principle of mutual need: If one can assure ones vendor that both are interdependent on each other, the trust must carry the relationship. In other words-You must allow market forces and not binding agreements to determine just who the constituents of your supply chain will be.

Thank you!!!