PROJECT ON

SUPPLY CHAIN MANAGEMENT

Perishable Products (Restaurant Chain)

Group Members

Nikhil Jadhav (8126)
Asif Shaikh (8150 )
Pooja Shetty (8153)
Sunil Singh (8155)
Imran Khan (8185)
Ashwin Kodati (8187)
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 the
product
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 the
product
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

MCDONALDS CORPORATION

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 providing
outstanding quality, service, cleanliness, and
value, so that we make every customer in every
restaurant smile."
Values
Our values summarized in Q.S.C & V. Provide
good quality, services to customer . Have
cleanliness environment when customer enjoys
their meal .The value of food product makes
every customer is smiling.
Quick Facts About McDonalds

McDonald's was started as a drive-in restaurant by two
brothers, Richard and Maurice McDonald in California,US
in the year 1937.
By mid-1950s, the restaurant's revenues had reached
$350,000.
Ray Kroc, distributor for milkshake machines, expressed
interest in the business, and he finalized a deal for
franchising with the McDonald brothers in 1954.
He established a franchising company, the McDonald
System Inc. and appointed franchisees.
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

McDonald's In India
1996 - First restaurant opens in India, at
Basant Lok,Vasant Vihar, New Delhi.
McDonald's India is a 50 50 JV partnership
between McDonalds Corporation (U.S.A) and two
Indian businessman Amit Jatia (Hardcastle
Restaurants Private Limited, Mumbai)and Vikram
Bakshi (Connaught Plaza Restaurants Private
Limited, Delhi).
Two separate operations in Northern & Western
India.
Partners and their management teams trained
extensively in Indonesia & the U.S.
Approximately 75% of the menu available in
McDonalds in India is Indianized and specifically
designed to woo Indian customers.
The McDonald's philosophy of QSC&V is the
guiding force behind its service to the customers.

Market potential of the McDonalds

McDonalds has built up huge brand equity. It is the No. 1 fast-food
company by sales, with more than 31,000 restaurants serving
burgers and fries in almost 120 countries. Sales, 2007 (11,4009
million), 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 lifestyle
foods. Its move into hot baguettes and healthier snacks (fruit) has
supported its new positioning.
Use of CRM, database marketing to more accurately market to its
consumer target groups. It could identify likely customers (based on
modeling and profiles of shoppers) and prevent brand switching.
Strengthen its value proposition and offering, to encourage
customers 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 its
focus on educating consumers about health, fitness.
Continued focus on corporate social responsibility, reducing the
impact on the environment and community linkages.
International expansion into emerging markets of China and India.


Competitive environment of the
Restaurant Chain (MCD)



Competitive environment


McDonalds India: Channel Network

McDonalds India: Network &
competitors


How product reaches to consumer?
Criticality/significance of the Supply chain

Geographically Diverse suppliers: Ensuring stringent quality standards

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
VALUE CHAIN ANALYSIS OF
MCDONALDS

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Organizing the supply
of food and materials to
restaurants through
approved third party
logistics operators.

Production in huge
plants denoted
exclusive to McDonalds
control food
distribution and
packaging system
Inbound
logistics
Technological Development
Human Resource Management
Firm Infrastructure
Procurement
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Relatively Few
Management Layers to
Reduce Overhead
Effective Training Programs
to Improve Worker
Efficiency and Effectiveness
Timing of Asset
Purchases
Efficient Plant
Scale to Minimize
Manufacturing
Costs
Selection 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
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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 enhance
participation in process
improvement


Operations
Technological Development
Human Resource Management
Firm Infrastructure
Procurement
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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
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Is the concern of the
franchisee.

Outbound logistics
are growing as a part
of McDonalds
recycling system
integrating in the
logistics of
distribution center
Outbound
logistics
Technological Development
Human Resource Management
Firm Infrastructure
Procurement
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Long term marketing
objectives are broken
down into shorter term
measurable targets, which
McDonald uses as
milestones.

Country teams are given
autonomy in marketing
mix decision.

Advertising & PR is
outsourced
(Mudra agency
in India)

Marketing
Technological Development
Human Resource Management
Firm Infrastructure
Procurement
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Services
provided by the
companies
enrollment
standards
Service
Technological Development
Human Resource Management
Firm Infrastructure
Procurement
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Procurement
Sought partners with expertise on down trade distribution
Procurement
Technological Development
Human Resource Management
Firm Infrastructure
Procurement
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Technological Development
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
Technological Development
Human Resource Management
Firm Infrastructure
Procurement
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Human Resource Management
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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Technological Development
Human Resource Management
Firm Infrastructure
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Firm Infrastructure
Strong real estate portfolio.
International organization more than 50000 employees works in more
than 50 countries,
INFRASTRUCTURE
Process:


Who are all intermediate in between of Mfg to
final consumer.
Describe role of each intermediate in the supply
chain
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 and
nutritional value.
Procurement
warehousing

Transportation
Retailing of
food product
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






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 different
points in supply chain.
HACCP(Hazard analysis critical control points) food
safety standards emphasizing prevention of faults.
The five main performance objectives
are:
Speed
Cost
Quality
Dependability
Flexibility