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Transcript

McDonald's

Supply Chain

COMPANY

LOGO

History

McDonald's History

Origins

In 1917, 15-year-old Ray Kroc lied about his age to join the Red Cross as an ambulance driver, but the war ended before he completed his training. He then worked as a piano player, a paper cup salesman and a Multimixer salesman.

In 1954, he visited a restaurant in San Bernardino, California that had purchased several Multimixers. There he found a small but successful restaurant run by brothers Dick and Mac McDonald, and was stunned by the effectiveness of their operation. They produced a limited menu, concentrating on just a few items – burgers, fries and beverages – which allowed them to focus on quality and quick service.

They were looking for a new franchising agent and Kroc saw an opportunity. In 1955, he founded McDonald’s System, Inc., a predecessor of the McDonald’s Corporation, and six years later bought the exclusive rights to the McDonald’s name and operating system. By 1958, McDonald’s had sold its 100 millionth hamburger.

Supply Chain

Supply chain of McDonalds

The Cold Chain

- A cold chain is a temperature-controlled supply chain.

An unbroken cold chain is an uninterrupted series of storage and distribution activities which maintain a given temperature range.

It is used help extend and ensure the shelf life of products such as fresh agricultural produce, processed foods.

- It was started by McDonalds in India.

- It took 6 years.

- Benefited to both consumers as well as farmers.

- Helped to maintain freshness and nutritional value of raw materials.

Steps involved in cold chain

1-Procurement

2-Warehousing

3-Transportation

4-Distribution

All the above activities took place in temperature-controlled atmosphere

Steps Involved

Procurement

Procurement

- In the process of procuring a product, McDonald’s franchise restaurant places an order through E-MAC digital website.

- The order is sent to the suppliers. Suppliers order is processed and managed by the logistics.

- The logistics sends the order of the products to the franchise restaurants.

It is the responsibility of the E-MAC and logistics that the products are sent to the restaurant

- All the above, steps are handled and executed by the E-MAC digital.

Warehousing

Warehousing

McDonald's Has 3 Types of Stocks.

1) Raw Materials

2) Work in Progress (WIP)

3) Finished Goods

Transportation

Transportation

- The transportation of McDonald’s has been completely outsourced and since 80 percent is in refrigerated truck movement.

- The products are transported in a dedicated fleet of refrigerated trucks to the company’s Distribution Centres.

- Multi-temperature and single temperature trucks then transport the fast food swiftly to the McDonald’s restaurants across the country.

Distribution

Distribution

McDonlad's Uses 3 Types of Distribution

1) Franchising

2) Licensing

3) Joint Ventures

3 Legged Stool

Conclusion

McDonald's Secret Sauce

- In matters dealing with suppliers, McDonald’s does indeed have a secret sauce. But it has nothing to do with condiments and herbs. The secret sauce of McDonald’s success is found within long-term transparent relationships based on the unwavering belief that everyone in the McDonald’s “System” can and should win. The deep-seated culture for long-term, win-win relationships with suppliers dates back to McDonald’s inception, when founder Ray Kroc established a precedent of trust and loyalty. Kroc believed that if the restaurant owner/operators and suppliers were successful, success would come to him as well. Simply put, McDonald’s, its owner/operators, and their suppliers have a Vested interest in helping each other succeed.

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