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FAST
FOODINDUSTRYBy:-
Abhinav khanduja 208
Aayush sharma 209
Nalini katiyar 215
Mohit rathi 220
Kriti singh 236
Keshav kishore 261
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OBJECTIVE
To study the operations and supply chainmanagement of Mc Donalds and Dominos.
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Flow of the presentation
Introduction.
Mc Donald industry.
Logistics of Mc donalds.
Dominos. Logistics of Dominos.
Recommadations.
Conclusions.
Refrences.
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FAST FOOD INDUSTRY
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MAJOR PLAYERS
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McDonalds History
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McDonalds System theWorlds Best QSR experience
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PRODUCTS
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c
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c
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Cheese Dynamix Dairy Industries Ltd., Pune
Dehydrated onions Jain Foods, Jalgaon
Iceberg lettuce Trikaya Agriculture, Pune
Chicken patty Vista Foods, Taloja
Veg. Patty, Veg. Nuggets, Pies Kitran Foods, Taloja
Chicken (dressed) Riverdale, Talegaon
Buns Cremica Industries, Phillaur
Eggless mayonnaise Quaker Cremica Pvt. Ltd., Phillaur
Sesame seeds Ghaziabad
Fish fillet patties Amalgam Foods Ltd., Kochi.
Vegetable for the pattiesFinns Frozen Foods, Nasik and JainFoods, Jalgaon
Mutton and Mutton Patties Al Kabeer, Hyderabad
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SUPPLY CHAIN INTEGRATION
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Mc Donalds India sources its ingredients from localsuppliers 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 temperaturesfrom supplier location to the distribution centre.
Reference: National Retail Federat-Case Study
Contd
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Distribution centre is also divided into multi-temperaturezones , as are the trucks for storing products. With freezerat 0 degree F to 33 degree F , chiller at 33 degree F to 40degree F, and room temperature.
Reference: National Retail Federat-Case Study
Contd
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Restaurants have in built cold storage units subdividedinto same aforesaid zonesfreezer, chiller ,andambient.
Reference: National Retail Federat-Case Study
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Consumer/outlets
38 suppliersacrossthe country
ProcurementlogisticFood /nonfood:
Frozen , chilled &
any dry goods
Warehousing & packaging
Distribution logistics
Food /nonfood:Frozen , chilledany dry goods
C Donalds Supply Chain (160 restaurants across
the country)
#
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Supply of ingredients:
Sesame seedsGhaziabad, UP
Buns
Shah & sons,Khopoli ,MH &Cremica Industries,Noida
Iceberg lettuceTrikaya Agriculture , Talegaon MHMeena Agritech ,DelhiFerrocoa Farm, Dehradoon
Special vegetarian sauce(Eggless)Quaker Cremica,Phillaur,Punjab
Batter & BreadingCremica Industries, Ludhiana ,Punjab
Vegetable Patty(Made from fresh Peas,Carrots,Green beans,Potatoes and Rice)Kiltran foods, Taloja MH
Reference: mcdonaldsindia.co
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BACKGROUND NOTE
In the late 1950s, Dominick De Varti (Varti)owned a small pizza store namedDomiNicks Pizza on the Eastern MichiganUniversity campus in Ypsilanti, Michigan.
In 1960, two brothers who were students ofthe University of Michigan Thomas S.Monaghan (Thomas) and James S.Monaghan bought that store.
Thomas decided to change the name of hisfirst store, DomiNicks Pizza, and one of hisemployees suggested the name DominosPizza (Dominos).
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DOMINO S INDIA
In early 2000, Pawan Bhatia, the former CEO of
Dominos Pizza India (Dominos) was a man ina hurry.
He had frantically reworked the pizza chain's
India strategy. Bhatia planned to open 150 newoutlets by the end of 2002 covering 23cities(Tier-I),including Bhubaneshwar (Orissa)and Jamshedpur (Bihar).
As part of its expansion plans Domino'srevamped its entire supply chain operations,from sourcing raw materials to shipping them forprocessing at a central location to delivering it to
the customer's.
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CORPORATE STRATEGY
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PRODUCTS
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OPERATIONS
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1. Domestic Stores
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3. International
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DOMINOS SUPPLY CHAIN
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2. Distribution
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3. Retail Outlets
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SUPPLY CHAIN DIAGRAM
WHEAT
REFRIGERATEDTRUCK
WAREHOUSE
DOUGH
RETAILOUTLET
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Outsourcing the Ingredients
Wheat Jalandhar (Punjab)
Cheese Karnal, Haryana
Tomatoes Bhubaneshwar, Orissa
Spice South India
Baby Corn Nepal
Exotic Vegetables Sri Lanka
Pepperoni Australia
Jalapeno Spain
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ISSUES
Dominos were in 16 cities so the level of
complexity is bit high for them.They cant go forcentralized system.
The retail outlets had to use up the processeddough within three days of delivery.
Need of call center.
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THE PIZZA HOTLINE
In April 2000, Dominos introduced acommon toll-free number in all the 16cities it operated, which had beenbranded as the Hunger Helpline
It worked seemed simple: each time acustomer called, his location was
identified and the order was transferredto the nearest Dominos outlet, which
then took on the task of delivering theorder 30 minutes.
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LAYOUT PLAN
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Pizza Baseprepared
Cheeseblend
applied
DoughTable
SeasoningTopping
Makeline
470Fahrenheit
Capacity of5 pizzas at
a time
Oven
1-2 minutes 1 minute 5-6minutes
Turnout is 1 pizza per minute
Meets the current demand requirements
Bottleneck is oven
PRODUCTION
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4 commissaries(Regional Centralized
Facilities) acrossIndia:
Raw materials likewheat brought in fromJalandhar and sent to
commissaries viarefrigerated trucks
Tomato, Capsicumand Onion purchased
locally
Delhi
Bangalore(caters to 90outlets across South Zone)
Kolkata
Mumbai
RAW MATERIALS ANDPROCUREMENTS
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Dough balls processedfrom wheat are sent toretail outlets inrefrigerated trucks
HUB AND SPOKEMODEL withcommissaries as hubs
Frozen food sent at -18 deg Celsius
DISTRIBUTION
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WHEAT(JALANDHAR)
DOUGHCOMMISSARY REFRIGERATEDTRUCK
RETAIL OUTLET
SUPPLIERS(Toppings &Seasonings)
LOGISTICS
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ITEM SHELF LIFE
Dough ball 5 days
Mexican Wrap Base 3-4 days
Cheese Dip 4-5 days
Seasoning and Toppings 4-5 days
Onion, Tomato, Capsicum 5 days
Cheese Blend 4-5 days
INVENTORY MANAGEMENT
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Mini Cold Storage at Outlet (Walk In)
Maintain approximately 4 days of inventory
Trucks from commissaries replenish inventoryevery 4 days
Inventory levels are monitored centrally via POSdata using Intura Vision installed in every outlet
Two POS per outlet (Telephonic sales and InStore Sales)
CONTD
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Hub andSpoke
Distribution
Hubs at 4 commissaries
DelayedDifferentiatio
n
Tomato, Capsicum, Onion etc.purchased locally
IST (InterStore
Transfer)
To cater to sudden variability'sin demand
SalesIncentives
To try to get volumes up duringlean times
OPERATIONAL STRATEGY
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SCIP (Store Continuous ImprovementPlan)
Sales Training
FTD (Friday Training Day)
HTR (Handle The Rush)
Rubber Gloves.
QUALITY INITIATIVES
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Makingimprovementthrough team
work and
employeeempowerment
Continuousimprovement
at its base
Belief that allmeaningfulideas aregood and
must beimplemented
Everyone isexpected to
givesuggestions
on regularbasis
Award System(Tokens, Scores)
CUSTOMER SERVICE
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RECOMMENDATIONSISSUES
COMPETITION
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ISSUES RECOMMENDATIONS
Local manufactureof dough balls toreduce wastage
Usage of deep freezer as in other stores
Appointing amarketing
professional atlocal level
Authority to introduce offers for short period For a better market study and introduce new
products suited to local preferences
Inter StoreTransfer
Dominos Should have a big store inBangalore.
COMPETITION
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ISSUES
Pizza Hut is the
competitor to theDominos Pizza
RECOMMENDATIONS
COMPETITION
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REFRENCES
www.mcdonadlsindia.in
www.dominos.co.in
www.supplychain.org
www.wikipedia.org
www.inboundlogistics.com
www.books.google.co.in
www.advancesupplychain.com
www.distributionchain.com
http://www.mcdonadlsindia.in/http://www.dominos.co.in/http://www.supplychain.org/http://www.wikipedia.org/http://www.inboundlogistics.com/http://www.books.google.co.in/http://www.advancesupplychain.com/http://www.distributionchain.com/http://www.distributionchain.com/http://www.advancesupplychain.com/http://www.books.google.co.in/http://www.inboundlogistics.com/http://www.wikipedia.org/http://www.supplychain.org/http://www.dominos.co.in/http://www.mcdonadlsindia.in/7/29/2019 dominos vs macdonald
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