Supply Chain Management

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Supply Chain Management of McDonalds
McDonald's Corporation (NYSE: MCD) is the world's largest chain of hamburger fast food restaurants, serving more than 58 million customers daily.[4] In addition to its signature restaurant chain, McDonald’s Corporation held a minority interest in Pret A Manger until 2008, was a major investor in the Chipotle Mexican Grill until 2006,[5] and owned the restaurant chain Boston Market until 2007.

A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion.

McDonald's primarily sells hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, shakes, and desserts. In response to obesity trends in Western nations and in the face of criticism over the healthiness of its products, the company has modified its menu to include alternatives considered healthier such as salads, wraps and fruit.

In a fast food business, supply chain is of highest importance. It helps in minimizing cost, cut down the delivery time, improve the profits and at the same time maintain the highest standards. The importance of supply chain can be understood by the fact that before setting up their first restaurant in India, mc donalds infused around Rs. 400 crores in the supply and delivery chain. Mc donalds india source all its products and its raw materials from India only. Mc donalds develops local businesses that supply them the products and that too of highest standards. Today mc donalds have around 38 suppliers and that too on the long term basis.

MC DONALDS DISTRIBUTION CENTRES……

• Noida and kalamboli(Mumbai)……………..1996
• Bengaluru……………………………………..2004 • Kolkata…………………………………………2007

1st distribution agreement was done by Radhakrishana group, a group engaged in food business in the year 1993 and it was their 1st distribution centre.

CONCEPT OF 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, photographic film, chemicals and pharmaceutical drugs. This concept of cold chain in food industry and that too on such a large scale was started by mc donalds only.

This concept was unique in India and to start this concept, it took around 6 years. It benefited both farmers as wella s the consumers, as they are getting the fresh, best quality and great value food. With this concept mc donalds cut down its wastage and able to maintain its freshness and nutritional value of raw material. 

STEPS INVOLVED IN COLD CHAIN CONCEPT…….

• Procurement
• Warehousing
• Transportation
• Retailing

All the above activities took place in tempreture controlled atmosphere.

McDonald's finding the factor of cold room being vital ensured that even before vegetables from farms entered the refrigerated zones, they were locked in a pre-cooling room to remove field heat. Vegetables were placed in the pre-cooling room within half an hour of harvesting where rapid cooling decreased the field temperature of vegetables to 2ºC within 90 minutes. Then a large cold room (a refrigerated van) was used for transportation to the distribution centers. In the van, the temperature and relative humidity of crop was maintained at 1-4ºC and 95 per cent, respectively and the flavors and freshness are locked At the suppliers' level, care was taken to guard against any possible contamination or interruption in the cold chain that can break the link and have a detrimental effect on the quality of our product. 

The iceberg lettuce...
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