'Mcdonalds India Supply Chain Management\r'

'Supply fibril Management ply CHAIN ASSIGNMENT ON SUBMITTED TO- MS HARLEEN SAHNI SUBMTTED BY- ANKKIT RAJ McDonalds purposeicipation is the pieces big(p)st filament of beefburger  debauched victuals for thought eaterys, luck around 68 million customers daily in 119 countries. Headquartered in the United States, the fol dispirited began in 1940 as a barbecue eating place operated by Richard and Maurice McDonald and in 1948 they reorganized their line of model as a hamburger stand using  harvestion line principles. man of affairs Ray Kroc joined the guild as a franchise agent in 1955.He subsequently purchased the kitchen stove from the McDonald br separates and oersaw its worldwide growth. A McDonalds restaurant is operated by some(prenominal) a franchisee, an affiliate, or the tummy itself. The corporations r withalues come from the rent, royalties and fees paying(a) by the franchisees, as tumesce as sales in partnership-operated re staurants. McDonalds revenues grew 27 part over the deuce-ace long prison term ending in 2007 to $22. 8 billion, and 9 part growth in operating income to $3. 9 billion. Most standal whiz McDonalds restaurants offer some(prenominal) counter assist and drive- through with(predicate) service, with indoor and some moveences knocked egress(p)door seating.Drive-Thru, Auto-Mac, Pay and Drive, or â€Å"McDrive” as it is kn birth in m all countries, a great deal has separate stations for placing, paying for, and picking up clubs, though the latter cardinal steps atomic total 18 frequently combined; it was beginning(a) introduced in genus Arizona in 1975, following the lead of distinctwise loyal- nutriment mountain trains. The source such restaurant in Britain opened at F all in allow content, Manchester in 1986. McDonalds Corporation earns revenue as an investor in worthyties, a franchiser of restaurants, and an operator of restaurants.Appr oximately 15% of McDonalds restaurants be own and operated by McDonalds Corporation presently. The remainder is operated by former(a)s through a variety of franchise cartels and occasion ventures. The McDonalds Corporations  melodic phrase model is slightly variant from that of most otherwise immobile-solid victuals mountain chains. In addition to ordinary franchise fees and commercializeing fees, which be calculated as a pct of sales, McDonalds may similarly collect rent, which may a comparable be calculated on the nucleotide of sales.As a condition of m both franchise agreements, which vary by contract, age, clownish, and location, the Corporation may own or lease the properties on which McDonalds franchises atomic number 18 located. In most, if non all cases, the franchisee does not own the location of its restaurants. The United commonwealth and Ireland assembly line model is diametrical than the U. S, in that few than 30% of restaurants b e franchised, with the bulk chthonic the self-will of the confederation. McDonalds trains its franchisees and others at Hamburger University in Oak Brook, Illinois.In other countries, McDonalds restaurants argon operated by joint ventures of McDonalds Corporation and other, topical anaesthetic entities or governments. As a matter of policy, McDonalds does not make direct sales of food or materials to franchisees, instead organizing the fork over of food and materials to restaurants through pass third party logistics operators. McDonalds restaurants be found in 119 countries and territories around the world and serve 58 million customers for each one day. McDonalds operates over 31,000 restaurants worldwide, employing more than than 1. million people. The confederation too operates other restaurant  grasss, such as Piles Cafe. Focusing on its core brand, McDonalds began divesting itself of other chains it had askd during the 1990s. The company owne d a studyity stake in Chipotle Mexi dissolve Grill until October 2006, when McDonalds in full divested from Chipotle through a stock exchange. Until December 2003, it also owned Donatos Pizza. On August 27, 2007, McDonalds sold  bang-up of Massachu promontoryts Market to Sun with child(p) Partners. MCDONALDS INDIA INDIA AS A MARKETIn 1996, McDonalds opened in India for the first time, a acres where the majority of the population was Hindu and ve cleararian, and the cow was inviolable. umteen saw it as just another usageout of the relentless spread of Western corporations into e genuinely nation, creating a global system in which wealth was knackered out of topical anesthetic economies into the hands of a very few, very rich elite. McDonalds opened its doors in India in October 1996, demonstrating what the McDonalds experience was all about. McDonalds in India was a 50-50 joint venture partnership amidst McDonalds Corporation (U.S. A. ) and devil Indian businessmen. Amit Jatias company, Hardcastle Restaurants Pvt. Ltd. , owned and operated McDonalds restaurants in Western India, epoch Connaught Plaza Restaurants Pvt. Ltd. , headed by Vikram Bakshi, owned and operated the North Indian operationsi. These companies signed their joint-venture agreements with McDonalds in April 1995 and along with their Indian focusing team trained in McDonalds restaurants in In dosia and the U. S. A. forrader opening the first McDonalds restaurant in India. The approach of McDonalds in India was perfectly timed.The market had begun to open up. The parsimony of the nation was growing stronger. The customer markets were eager to acquire rawer products and use brisker forms of services. Foreign brands were prized and perceived to be superior in tincture. According to a shroud of AC Neilson, among the worlds consumers, Latin Ameri outhouses and Asians were the biggest lasters of globalisation and the value that it add ed to the variant aspects of their livesii. It was a favourable power for McDonalds because at the time when they entered, India, the Asian Tiger was awakening to the global call.The Indian customer was enthusiastic about the market situation which provided them with numerous choices to choose and pick. In a personal manner McDonalds revolutionized the food retailing business in India. It introduced the Indian customers to service standards which were available in the western world for stratums. These service standards were visible and noteworthy and hence triggered brisk acceptance within the customers. McDonalds positioning in India as a family restaurant further fuelled its victor. DIVERSITY IN THE INDIAN MARKET India as a market was a unique example of miscellany.Divided into 28 evokes and 7 union territories, the vegetation, climate, religion, language, clothing, and food varied from one state to another. With the combination of spices in a unique way, fo od of these states reflected their traditions and refining. Hence the biggest challenge to any food business in India definitely was about balancing the diversity and the product offerings. McDonalds got clearance from Foreign Investment forward motion Board (FIPB) of India in 1991. But it was barg b arely later five years of preparation, that the first restaurant became useable in 1996.It worked on developing local relationships with local partners to facilitate the naked material. Indian companies for their operational thingmabob had divided the Indian subcontinent into four zones, the progressive West, the brawny North, the traditional and paganly rich, South and East. McDonalds opened their first restaurant in the capital of India which is Delhi. The second restaurant was opened in the financial capital of India, Mumbai. McDonald ab initio concentrated in the West and North regions.Later the company exhibited ambitious plans for expansion in Easter n and southern regions. McDonalds real influence had been in establishing organizational systems of exhaust learn at every(prenominal) stage from raw product to featureory, from worker to consumer †backed by changeless media hype. McDonalds had been a successful global food corporation at refining, co-coordinating, standardizing and developing such processes into a wide system. It had set up these practices in every country it had go into, and many other companies followed their suit.What Ford go Company did for cars, travel and the urban environment; McDonalds had through with(p) for food and eating habits. McDonalds expansion was criticized and resisted by wad unionists, local residents, nutritionists and many others in almost every town and country where they planned a new store †despite their high uply certain and dear(predicate) marketing effort about existence a benefit for the community. They were resisted for what they represented, and remained a foc us of controversy. CHALLENGES FACED BY MCDONALDS IN INDIA Vegetarianism: The major issue was beef.Cow being sacred and worshipped, beef could not be served. Muslims did not eat pork. The challenge was to change the form of the worldwide touristy Hamburger to make an entry into India. With 25-30% of the population being lacto vegetarian and a great(p) majority eating meat, an pick to beef and pork was necessary. Competition from Local nutrition Retailers: The competition from the local food retailers was intense. The food retailers had been doing business for years. Their familiarity with the market and the understanding of the local taste gave them a competitive edge.There were numerous eating joints which offered snacks and meals with affordable wrong tags. Target Marketing: Operation Excellence fodder Innovation Value propositions had to be directed to the recompense target market to establish a new product. An provoke question was who would eat at McDonalds? In order t o develop the marketing strategy, it was important for any company to understand the consumer market. The more one knew and mum about consumers, the more accomplishmentively one could run and market to them Brand Trust Pricing MCDONALDS tote up CHAINAn effective return chain is an intricate earnings of providers, distributors and customers who shargon c befully managed information about demand, end and performance, and who recognize that success for one part of go forth chain means success for all. McDonald’s is the individual largest food chain service retailer in the world. It serves around 45 Million customers everyday in 121 countries. It has 29,000 restaurants worldwide. It is also the single largest real estate owner. In India, McDonald’s  made its presence felt in the year 1996.It has 30 restaurants in 5 contrasting cities In India. 95% of the ingredients/products apply by them atomic number 18 sourced locally. McDonald’s restaurants i n the south and west of India make for under Hardcastle Restaurants Private bound which is a organic evolution Licensee. Amit Jatia is the Vice-Chairman of the company. For the north and east of India, McDonald’s has formed a joint venture with Connaught Plaza Restaurants Private express mail of which Vikram Bakshi is the Managing Director. These cardinal companies monitor, scrutinize and judicially promote the brand of McDonald’s in the country.The main business comes from Delhi, Mumbai, Jaipur, Pune and Mathura. McDonalds had been operative on its supply chain even forwards it opened its first joint in the country. McDonalds, an outside(a) brand which was trying to make inroads into the country, developed its Indian partners in such a manner that they stayed with the company from the beginning. McDonald’s spent around 6 years in setting up its supply chain in India. The philosophy of its supply chain is cryptograph but partnering with its providers, so that a win-win situation shtup be achieved and both can earn evenue, the aggregate logistics and other cost can be lowered, expertise of the supplier will declare an advantage and so on The main factors to focus here are supplier partnering elements †shared information, chances, risks and payback, long term commitment, periodic reviews, compatible culture and the most important mutual understanding. The success of McDonalds India was achieved by sourcing all its required products from within the country. To chink this, McDonalds developed local businesses, which can supply it highest tincture products.Today, McDonalds India works with 38 different suppliers on a long term basis and several other stand alone restaurants for its unlike other requirements. McDonald’s statistical distribution optics in India came in the following order: Noida and Kalamboli (Mumbai) in 1996, Bangalore in 2004, and the latest one in Kolkata (2007). McDonald’s entered its first distribution partnership agreement with Radha Krishna Foodland, a part of the Radha Krishna Group engaged in food-related service businesses. The association goes back to July 1993, when it studied the nuances of McDonald’s operations and requirements for the Indian market.As distribution centres, the company was responsible for(p) for procurement, the case inspection programme, memory, inventory management, deliveries to the restaurants and selective information collection, arranging and reporting. Value-added services standardized shredding of lettuce, re-packing of promotional items continued since consequently at the centres playing a vital exercise in maintaining the integrity of the products throughout the broad(a) ‘ crisp chain’. dapple the supply chain of McDonald’s at first glance appears simple, its diverse components are both comminuted and multi-layered. Food ingredients are supplied by two categories, Tier-I and Tier-2 supplier s.Tier-2 suppliers comprise growers and processors who include importantly, lettuce and white potato vine growers, fowl farms and companies which industriousness coating systems that coat the veggie and xanthous patties. The ingredients are supplied to Tier-I suppliers who process them, for instance, into vegetable and icteric patties †this is done by Vista graceful Foods Pvt. Ltd. or potato products like French fries, potato wedges and hashbrowns which are like an expert churned out by McCain Foods India Pvt. Ltd. The products are past conveyinged in a dedicated fleet of refrigerated hand motortrucks to the company’s distribution Centers.Multi-temperature and single temperature trucks then transport the fast food swiftly to the 217 McDonald’s restaurants across the country. The supply-chain of McDonald’s has also been expertly devised to include the solid aspect of return logistics. They grant a large component of return logistics. The buns are packed in plastic crates to arrest their quality. These crates hit to go back to the logistics quickness, that’s where return logistics comes in. From there they are sent to the bakeries. Supply of Ingredients Special vegetarian sauce Quaker, Cremica, Phillaur, PunjabSe corresponding seeds Ghaziabad, UP Iceberg Lettuce Ferrocoa Farms, Dehradun Buns Shah & Sons,Khopoli,MH & Cremica Industries, Noida Vegetable Patty Kiltran Foods, Taloja, Maharashtra bastinado & Breading Cremica Industries, Ludhiana, Punjab Ingredients from across the country DISTRIBUTION CENTRES The fast food chain has four Distribution Centers across the country to serve its 217 restaurants. The DCs incur segued seamlessly with the vision of the company which has embarked on a period of roller coaster growth, with one McDonald’s outlet being launched every ten days in the country!The company owns DCs in Noida and Mumbai which are primary Distribution Centers. The other two Di stribution Centers are in Bengaluru and Kolkata and are housed in contract properties. The supply-chain of the fast food chain is in effect a hub-and-spoke model because the DCs act as hubs. The transfer of McDonald’s has been completely outsourced and since 80 portion is refrigerated truck apparent movement, the company has a dedicated fleet which transports their goods. OUTSOURCING The success of the supply-chain model of McDonald’s can be directly attributed to its unique concept of outsourcing work.Unlike other corporate heavies, the company has a 100 percent outsourced supply chain. McDonald’s believes that they should outsource everything to a company who are experts in their subject matter and then monitor their performance in a proper fashion so that Key Performance Indicators (KPIs) are not affected at all. This is how McDonald’s operates not just in India, but everywhere. Underlying the pliability of its supply-chain are three principles to which the company adheres unwaveringly, the principles of trust and collaboration between the brand, the owners or operators, and the suppliers. It’s like a three-legged stool. all(prenominal) leg (principle) has to be evenly strong so that there’s no collapsing foundation. McDonald’s also believes in a culture of partnership and transparency with its suppliers. They have 100 percent transparency in everything that they do which is very critical for them when they work with their suppliers. McDonald’s has 14 core suppliers who supply directly to the fast food chain and they are known as Tier-I suppliers. Examples of Tier-I suppliers are Vista svelte Foods Pvt. Ltd. , the Dynamix Group, Mrs Bectors, etc.The other suppliers forward ingredients to the Tier-I suppliers first and they are termed Tier-2 suppliers. The fast food chain has a keep down of 40 suppliers from whom it sources its ingredients. Most of the suppliers are local, but some are internat ionally famous foreign brands like McCain Foods India which set up cop in India when McDonald’s ventured into the fast food business in the country. For a McDonald’s supplier the terms of work are rigorous. A company’s stellar credentials are not enough; the supplier’s conjecture does not end when the product leaves his premises, rather it ends only when the customer consumes it.McDonald’s expects its suppliers to personally delay the quality of their products to skirt the risk factor. Suppliers like Coca gage which is McDonald’s beverage partner also, for instance, take pee management housees in its restaurants to ensure potable quality of drinking water. Sole Distribution Partner McDonalds’ products are distributed by Radhakrishna Foodland Pvt. Ltd which is the only distribution partner of the fast food chain. RK Foodland manages the four DCs and since it has a transport division, handles the truck movement in the supply-chain right through the country.McDonald’s expects its distribution partner to meet its standards of ‘ mothy, clean and on-time pitch shot ’. RK Foodland expertly manages the mundane day-to-day activities of the fast food chain like raising purchase orders to suppliers, invoicing, charge an astute eye on working capital management, timely economy, payments, etc. They are like a one- run off shop for the restaurants. Anything that is required, from a bulb that needs to be changed in a restaurant to training material, is sourced directly from RK.There are only two products, buns and Cokes, which are sent directly to the restaurants. Buns have a limited shelf liveliness, hence they are sent directly to the outlets, while Coca Cola has a well-oiled distribution system which ensures quick dispatch of its products. As with its suppliers, McDonald’s has no legally documented go Level Agreements (SLAs) with RK Foodland. The fast food chain cautiously calibrates th e performance of its distribution partner, measuring it against its own KPIs to ensure its performance does not dip below its own exacting standards.The DCs are assessed on several factors like administration efficiency, the total number of cases managed per man hour, storage warehouse efficiency, overtime as a percentage of the total number of hours worked and in the case of transportation, the number of cases handled per trip, truck utilization, etc. McDonald’s constantly scrutinizes the performance of RK Foodland against these KPIs; if its distribution partner is unable to meet certain benchmarks, in concert they devise solutions which would enable them to achieve set goals. bleak CHAINA marked feature of McDonalds’ supply-chain is that the unblemished entanglement consists of movement of goods through a refrigerating chain. In effect, the suppliers are also a part of this algid chain and in certain cases, for instance, the lettuce growers, the cold chain beg ins with the Tier-2 suppliers. McDonald’s have the largest refrigerated movement of products in India. An interesting and innovative feature of this cold chain is that the same truck can carry products at different temperatures, ranging from crisp products at -18C to -25C, chilled products from 1C-4C and prohibitionist products at ambient temperatures.Apparently, McDonald’s is the only company whose supply-chain network is characterized by this successful experimentation. The inbound supply chain of McDonald’s now consists of dedicated reefer trucks supported by dedicated and trained manpower. As the store meter and distances increased, they decided to come out with a determination of multi-temperature vehicles which could carry all three temperature products. They are installed with instinctive temperature controller. Truck containers were made with two side doors in addition to the rear door.The side doors are used to unload products without disturbing th e products in the other temperature zones. The delivery window is +/-2 days. The products are of three types i. e. frosty products, chilled products and dry products. The set products need the temperature from -15 to -25 deg C, the chilled products from 1 to 4 deg C and the dry foods from 24 to 30 deg C. This finesse and maintenance to detail has helped McDonald’s achieve its own USP of ‘quality, standards of service, cleanliness and value. McDonalds’ efficiency and effectiveness are also due to the fact that it has a ‘pull-supply’ chain. The restaurant issues orders to the Distribution Center which, in turn, routes the order to the supplier and only then does the supplier generate it. The supplier thus maintains barely any extra stocks; only if there is a contingency, like the overhaul or servicing of machinery, will the supplier produce surplus stocks. Cold compass was one of the unique concepts of McDonalds supply chain in India, on which it had spent more than six years to get the system into place.This system brought about a veritable(prenominal) revolution, immensely benefiting the farmers at one end and enabling customers at retail counters get the highest quality food products, short fresh and at great value. finished its unique cold chain, McDonalds has been able to both neck down on its operational wastage, as well as maintain the freshness and nutritional value of raw and processed food products. This has involved procurement, warehousing, transportation and retailing of decayable food products, all under controlled temperatures.The following list of suppliers, who build up the major supply chain of McDonalds, reveal how this ‘Cold Chain’ works and contributes towards the efficiency of McDonalds. * Dynamix Dairy Industries (Supplier of Cheese): Dynamix has brought immense benefits to farmers in Baramati, Maharashtra by setting up a network of draw collection centres equipped with bulk coolers . loose accessibility has enabled farmers augment their income by finding a new market for surplus take out.The factory has: * full automatic international standard processing facility * Capability to convert milk into cheese, butter/ghee, skim milk powder, lactose, casein & whey protein and tender-heartedized baby food. * taut quality control measures and continuous Research & teaching From farm two power points Celsius in 90 legal proceeding is the first step to quality. For example, the Rs 262-crore Dynamix Dairy Industries, located in Baramati in Pune district of Maharashtra, manufactures cheese slices for McDonald’s at 10 metric tonnes per month.Dynamix has helped set up 15 bulk cooling centres throughout the district from which it purchases milk. Each cooling centre, which is equipped with modern measuring and test equipment and a large cooling tank, is not more than a few kilometers away from local dairy farms. A farmer can deliver milk even doubly a day on his bicycle and get a printed receipt on the spot, which also lists the quality of the milk supplied by him as per ample content, colour and solids content. If the milk is sub-standard or adulterated, it is rejected on the spot. A batch of milk can vary from one litre to 10 litres, or more.Each batch is mixed in one large stainless steel cooler and chilled straight to two degrees Celsius to stop bacterial growth and preserve freshness. From this point onwards, until just before the burger is actually served in a McDonald’s restaurant hundreds of kilometers away, the temperature is never allowed to increase. When the refrigerated milk arrives at the Dynamix plant at Baramati, the milk in every single tanker is thoroughly well-tried and rejected if found sub-standard, adulterated or contaminated. The sophisticate testing lab can check fat content with an accuracy of 0. 1 per cent.It can even detect minute traces of pesticides or antibiotics administered to cows. T his instant feedback and the rejection of the entire tanker-load forces farmers to follow the best practices in terms of physical husbandry, use proper feeds, cut down on the indiscriminate use of pesticides and animal medicines and completely stop even the slightest attempts at adulteration. * Trikaya factory farm (Supplier of Iceberg Lettuce): execution of advanced bucolic practices has enabled Trikaya to successfully grow distinguishing characteristic crops like iceberg lettuce, special herbs and many eastern vegetables.Farm infrastructure features: * A specialized nursery with a team of agricultural experts. * Drip and sprinkler irrigation in raised(a) farm beds with fertilizer mixing plant. * Pre-cooling manner and a large cold mode for post draw handling. Refrigerated truck for transportation. Trikaya Agriculture, a major supplier of iceberg lettuce to McDonald’s India, is one such opening that is an intrinsic part of the cold chain. Exposure to mitigate agr icultural 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. McDonald’s has provided assistant in the selection of high quality seeds, exposed the farms to advanced drip-irrigation technology, and helped develop a refrigerated transportation system allowing a underage agri-business in Maharashtra to provide fresh, high-quality lettuce to McDonald’s urban restaurant locations thousands of kilometers away.Post harvest facilities at Trikaya include a cold chain consisting of a pre-cooling room to remove field heat, a large cold room and a refrigerated van for transportation where the temperature and the relative hu midness of the crop is maintained between 1? C and 4? C and 95% respectively. Vegetables are moved into the pre-cooling room within half an hour of harvesting. The pre-cooling room ensures rapid vacuum cooling to 2? C within 90 minutes. The pack house, pre-cooling and cold room are located at the farms itself, ensuring no go between harvesting, pre-cooling, packaging and cold storage.With this cold chain infrastructure in place, Trikaya Agriculture has also a plan to export this high value product to other international markets, especially to McDonald’s spunk East and Asia Pacific operations. McDonald’s expertise in packaging, handling and long-distance transportation has helped Trikaya to do test shipments to the Gulf successfully. In addition to export, McDonald’s tending has enabled Trikaya Agriculture to supply this crop to a number of star-rated hotels, clubs, flight kitchens and offshore catering companies all over India. * Vista Processed Foods Pvt.Lt d. (Supplier of Chicken and Vegetable chemical chain 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: * disassociate 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. Vista Processed Foods Pvt. Ltd. McDonald’s suppliers for the chicken and vegetable range of products, is another important player in this cold chain. Technical and financial support extended by OSI Industries Inc. , USA and McDonald’s India Private Limited have enabled Vista to set up initiatory infrastructure and support services. This includes hi-tech refrigeration plants for manufacture of frozen food at tem peratures as low as †35° C. This is vital to ensure that the frozen food retains it freshness for a long time and the ‘cold chain’ is maintained. The frozen product is immediately moved to cold storage rooms.With continued assistance from its international partners, Vista has installed hi-tech equipment for both the chicken and vegetable processing lines, which reflect the latest food processing technology (de-boning, blending, forming, coating, frying and freezing). For the vegetable range, the latest vegetable mixers and blenders are in operation. Also, keeping cultural sensitivities in mind, both processing lines are absolutely segregated and utmost care is taken to ensure that the vegetable products do not mix with the non-vegetarian products.Now, at Vista, a very wide range of frozen and nutritious chicken and vegetable products is available. Ongoing R&D, both locally and in the parent companies, work towards innovation in taste, nutritional value and convenience. These products, similarly being supplied to McDonald’s, are also offered to institutions like star-rated hotels, hospitals, expulsion sites, caterers, corporate canteens, schools and colleges, restaurants, food service establishments and coffee shops. Today, business 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 intact 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 Celius. Effective process control for minimum d istribution cost. McDonald’s local supply networks through Radhakrishna Foodland, which operates distribution centres (DCs) for McDonald’s restaurants in Mumbai and Delhi. The DCs have focused all their resources to meet McDonald’s expectation of ‘Cold, Clean, and On-Time Delivery’ and plays a very vital social occasion in maintaining the integrity of the products throughout the entire ‘cold chain’. Ranging from liquid products coming from Punjab to lettuce from Pune, the DC receives items from different parts of the country.These items are stored in rooms with different temperature zones and are finally dispatched to the McDonald’s restaurants on the basis of their requirements. The company has both cold and dry storage facilities with capability to store products up to -22? C as well as delivery trucks to transport products at temperatures ranging from room temperature to frozen state. * Amrit Food (Supplier of long life UHT M ilk and Milk Products for Frozen Desserts) Amrit Food, an ISO 9000 company, manufactures widely commonplace 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 equal UHT (Ultra High Temperature) processed milk and milk products. * unmitigated quality control supported by a fully equipped quality control laboratory. each(prenominal) suppliers adhere to Indian government regulations on food, health and hygiene while continuously maintaining McDonald’s recognise standards.As the ingredients move from farms to processing plants to the restaurant, McDonald’s Quality direction Programme (QIP) carries out quality checks at over 20 different points in the Cold Chain system. Setting up of the Cold Chain has also enabled it to cut down on operational wastage infer Analys is Critical Control Point (HACCP) is a systematic approach to food safety that emphasizes barroom within its suppliers’ facility and restaurants rather than detection through inspection of illness or presence of microbiological data.Based on HACCP guidelines, control points and critical control points for all McDonald’s major food processing plants and restaurants in India have been identified. The limits have been established for those followed by monitoring, recording and correcting any deviations. The HACCP verification is done at least twice in a year and certified. The relationship between McDonald’s and its Indian suppliers is mutually beneficial. As McDonald’s expands in India, the supplier gets the opportunity to expand his business, have access to the latest in food technology, characterization to advanced agricultural practices and the ability to grow or to export.There are many cases of local suppliers operating out of small towns who have be nefited from their association with McDonald’s India. bright Description McDonalds 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 â€freezer, chiller and ambient to ferry product demanding alter temperature from supplier’s location to the distribution centre.Distribution centre is also divided into multi-temperature zones like trucks with freezer at 0 degree F to 33 degree F. Restaurants have in-built cold storage units subdivided into same said(prenominal) zones- freezer, chiller and ambient. IN A NUTSHELL Forecasting regard Equally impressive is the accuracy of the demand envisions. The restaurants give a three-day to one-week forecast to the Distribution Center. The DC, in turn, has a three-month rolling forecast with the suppliers which enable them to plan their production schedules meticulously.For extensive long-term planning, McDonaldà ¢â‚¬â„¢s has devised the 31Q systemâ€3 stands for the three years that the fast food chain will keep checking its plans, 1 represents the detailed forecast of the next year and Q symbolizes the quarterly monitoring of these forecasts. While preparing the annual budget, they include their suppliers in the budgeting process, briefing them on the new products and restaurants to be launched. Using this information, the suppliers roll out their production schedules. The schedule for the next year is cautiously bushel and then stringently monitored.Once the forecasts are unlikeable and the budgets fixed, the plan schedules and performances are monitored every quarter, also to ensure that there is no dip in performance. With 217 restaurants illogical across the country, lead measure for delivery need critical importance. But McDonalds’ supply-chain network is everything it is supposed to be to ensure spot on distribution. Every restaurant manager knows the exact time of arri val of each product which enables the supply chain team to work backwards to ensure timely distribution. They have fixed locations of suppliers and restaurants and their own fleet of dedicated trucks and cleaners.They can anticipate the amount of time it takes for a product to dispatch from an X location to a Y location. If a truck takes four or five days to travel between a supplier’s premises in Taloja, Maharashtra, to Noida in the National Capital Region, dedicated McDonalds’ trucks will accomplish it in two days due to non-stop running of the fleet. This ensures that the lead times for their trucks and deliveries are pretty much predictable. With a maximum inventory of ten days in its system, McDonald’s maintains an efficient inventory turn ratio of 36.Tech artistic production The supply-chain network of McDonald’s, which appears to work effortlessly, is powered by various IT systems which enhance its effectiveness. Vista Processed Foods Pvt. Ltd use SAP, Tier-1 supplier of the chain. Distribution Centers of RK Foodland are on RAMCO Marshall ERP with Cobra software. These systems are used to directly upload store orders. At the restaurant level, the fast food chain has in-house developed technologies which track day-to-day sales, enables restaurants to schedule staff and charge up forecast orders to DCs.\r\n'