Sclm Final Write Up

8/3/2019 Sclm Final Write Up

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SUPPLY CHAIN AND LOGISTIC MANAGEMENT

PROJECT

ON

|SUPPLY CHAIN MANAGEMENT OF MC DONALDS INDIA}

SUBMITTED TO :- PROF SUNITA MALL

SUBMITTED BY:- NIRJANA NAYAK(10DM071)

SUBHOJIT NANDI(10DM088)

INSTITUTE OF MANAGEMENT & INFORMATION SCIENCE

BHUBANESWAR


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INTRODUCTION:-

McDonald's is the world's leading global foodservice retailer with more than 33,000 locationsserving approximately 64 million customers in 118 countries each day. More than 80% of

McDonald's restaurants worldwide are owned and operated by independent local men and

women. In India, McDonald's is a joint-venture company managed by two Indian

entrepreneurs. Amit Jatia, Vice Chairman, Hardcastle Restaurants Pvt. Ltd. owns and

spearheads McDonald's operations in West & South India while McDonald's restaurants in

North & East India are owned and managed by Vikram Bakshi's Connaught Plaza

Restaurants Private Limited. Celebrating over 15 years of leadership in food service retailing

in India, McDonald's now has a network of over 220 restaurants across the country.

McDonald's India is committed to sourcing almost all of its products from within the country.

Prior to its launch, the company invested six years to develop its unique cold chain, whichhas brought about a veritable revolution in food handling, immensely benefiting the farmers

at one end and enabling customers to get the highest quality food products, absolutely fresh

and at a great value. McDonald's India today has developed local Indian businesses, which

can supply the highest quality products required for its Indian operations

McDonald's worldwide is well known for the high degree of respect to the local culture of

each market it operates in. In line with this respect for local culture, India is the first country

in the world where McDonald's does not offer any beef or pork items. McDonald's has

developed a menu especially for India with vegetarian selections to suit the Indian palate

and has also re-engineered its operations to address the special requirements of

vegetarians. Special care is taken to ensure that all vegetable products are prepared

separately, using dedicated equipment and utensils. This separation of vegetarian and non-

vegetarian food products is maintained throughout the various stages of procurement,

cooking and serving. So much so that the mayonnaise and soft serves are also 100%

vegetarian and McDonald's uses only vegetable oil as a cooking medium in India.

McDonald's India is an employer of opportunity, providing quality employment and long-term

careers to professionals across the country. The average McDonald's restaurant employs

60-80 people from crew to restaurant manager. McDonald's invests in its employees,

leveraging world class-training inputs to create ambassadors of the brand and creating food

service professionals with global attitudes. The brand currently has over 8000 employees in

India.

McDonald's is driven by the philosophy of Quality, Service, and Cleanliness & Value for

Money. This translates into a commitment to provide customers high quality products,

served quickly with a smile, in a clean and pleasant environment at an affordable price. This

effectively means that the McDonald's menu is priced at a value that the largest segment of

the Indian consumers can afford while at the same time ensuring that quality is not sacrificed

for value ? rather McDonald's leverages economies to minimise costs while maximizing

value to customers.


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ProductofMc Donalds India :-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

Whatissupplychain:-

A supply chain, as opposed to supply chain management, is a set of organizations directly

linked by one or more of the upstream and downstream flows of products, services,

finances, and information from a source to a customer. Managing a supply chain is supplychain management. It can also be defined as design, planning, execution, control, and

monitoring of supply chain activities with the objective of creating net value, building a

competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand

and measuring performance globally.

Importanceofsupplychain management:-

Organizations increasingly find that they must rely on effective supply chains, or networks, to

compete in the global market and networked economy.In Peter Drucker's new management

paradigms, this concept of business relationships extends beyond traditional enterprise

boundaries and seeks to organize entire business processes throughout a value chain of

multiple companies.

During the past decades, globalization, outsourcing and information technology have

enabled many organizations, such as Dell and Hewlett Packard, to successfully operate

solid collaborative supply networks in which each specialized business partner focuses on

only a few key strategic activities. This inter-organizational supply network can be

acknowledged as a new form of organization. However, with the complicated interactions

among the players, the network structure fits neither "market" nor "hierarchy" categories .It is

not clear what kind of performance impacts different supply network structures could have

on firms, and little is known about the coordination conditions and trade-offs that may exist

among the players. From a systems perspective, a complex network structure can be

decomposed into individual component firms. Traditionally, companies in a supply networkconcentrate on the inputs and outputs of the processes, with little concern for the internal

management working of other individual players. Therefore, the choice of an internal

management control structure is known to impact local firm performance

In the 21st century, changes in the business environment have contributed to the

development of supply chain networks. First, as an outcome of globalization and the

proliferation of multinational companies, joint ventures, strategic alliances and business

partnerships, significant success factors were identified, complementing the earlier "Just-In-


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Time", "Lean Manufacturing" and "Agile Manufacturing" practices. Second, technological

changes, particularly the dramatic fall in information communication costs, which are a

significant component of transaction costs, have led to changes in coordination among the

members of the supply chain network .

Many researchers have recognized these kinds of supply network structures as a new

organization form, using terms such as "Keiretsu", "Extended Enterprise", "VirtualCorporation", "Global Production Network", and "Next Generation Manufacturing System". In

general, such a structure can be defined as "a group of semi-independent organizations,

each with their capabilities, which collaborate in ever-changing constellations to serve one or

more markets in order to achieve some business goal specific to that collaboration".

Historicaldevelopmentsinsupplychain management:-

Six major movements can be observed in the evolution of supply chain management

studies: Creation, Integration, and Globalization Specialization Phases One and Two, and

SCM 2.0.

1. creation era

The term supply chain management was first coined by a U.S. industry consultant in the

early 1980s. However, the concept of a supply chain in management was of great

importance long before, in the early 20th century, especially with the creation of the

assembly line. The characteristics of this era of supply chain management include the need

for large-scale changes, re-engineering, downsizing driven by cost reduction programs, and

widespread attention to the Japanese practice of management.

2. integration era

This era of supply chain management studies was highlighted with the development of

Electronic Data Interchange (EDI) systems in the 1960s and developed through the 1990s

by the introduction of Enterprise Resource Planning (ERP) systems. This era has continued

to develop into the 21st century with the expansion of internet-based collaborative systems.

This era of supply chain evolution is characterized by both increasing value-adding and cost

reductions through integration.

In fact a supply chain can be classified as a Stage 1, 2 or 3 network. In stage 1 type supply

chain, various systems such as Make, Storage, Distribution, Material control, etc. are not

linked and are independent of each other. In a stage 2 supply chain, these are integrated

under one plan and is ERP enabled. A stage 3 supply chain is one in which vertical

integration with the suppliers in upstream direction and customers in downstream direction is

achieved. An example of this kind of supply chain is Tesco.

3. globalization era

The third movement of supply chain management development, the globalization era, can be

characterized by the attention given to global systems of supplier relationships and the

expansion of supply chains over national boundaries and into other continents. Although the


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use of global sources in the supply chain of organizations can be traced back several

decades (e.g., in the oil industry), it was not until the late 1980s that a considerable number

of organizations started to integrate global sources into their core business. This era is

characterized by the globalization of supply chain management in organizations with the

goal of increasing their competitive advantage, value-adding, and reducing costs through

global sourcing.

4. specialization eraphase one: outsourced manufacturing and distribution

In the 1990s, industries began to focus on core competencies and adopted a specialization

model. Companies abandoned vertical integration, sold off non-core operations, and

outsourced those functions to other companies. This changed management requirements by

extending the supply chain well beyond company walls and distributing management across

specialized supply chain partnerships.

This transition also re-focused the fundamental perspectives of each respective

organization. OEMs became brand owners that needed deep visibility into their supply base.

They had to control the entire supply chain from above instead of from within. Contract

manufacturers had to manage bills of material with different part numbering schemes frommultiple OEMs and support customer requests for work -in-process visibility and vendor-

managed inventory (VMI).

The specialization model creates manufacturing and distribution networks composed of

multiple, individual supply chains specific to products, suppliers, and customers who work

together to design, manufacture, distribute, market, sell, and service a product. The set of

partners may change according to a given market, region, or channel, resulting in a

proliferation of trading partner environments, each with its own unique characteristics and

demands.

5. specialization eraphase two: supply chain management as a service

Specialization within the supply chain began in the 1980s with the inception of transportation

brokerages, warehouse management, and non-asset-based carriers and has matured

beyond transportation and logistics into aspects of supply planning, collaboration, execution

and performance management.

At any given moment, market forces could demand changes from suppliers, logistics

providers, locations and customers, and from any number of these specialized participants

as components of supply chain networks. This variability has significant effects on the supply

chain infrastructure, from the foundation layers of establishing and managing the electronic

communication between the trading partners to more complex requirements including the

configuration of the processes and work flows that are essential to the management of the

network itself.

Supply chain specialization enables companies to improve their overall competencies in the

same way that outsourced manufacturing and distribution has done; it allows them to focus

on their core competencies and assemble networks of specific, best-in-class partners to

contribute to the overall value chain itself, thereby increasing overall performance and

efficiency. The ability to quickly obtain and deploy this domain-specific supply chain


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expertise without developing and maintaining an entirely unique and complex competency in

house is the leading reason why supply chain specialization is gaining popularity.

Outsourced technology hosting for supply chain solutions debuted in the late 1990s and has

taken root primarily in transportation and collaboration categories. This has progressed from

the Application Service Provider (ASP) model from approximately 1998 through 2003 to the

On-Demand model from approximately 2003-2006 to the Software as a Service (SaaS)model currently in focus today.

6. supply chain management 2.0 (SCM 2.0)

Building on globalization and specialization, the term SCM 2.0 has been coined to describe

both the changes within the supply chain itself as well as the evolution of the processes,

methods and tools that manage it in this new "era".

Web 2.0 is defined as a trend in the use of the World Wide Web that is meant to increase

creativity, information sharing, and collaboration among users. At its core, the common

attribute that Web 2.0 brings is to help navigate the vast amount of information available on

the Web in order to find what is being sought. It is the notion of a usable pathway. SCM 2.0follows this notion into supply chain operations. It is the pathway to SCM results, a

combination of the processes, methodologies, tools and delivery options to guide companies

to their results quickly as the complexity and speed of the supply chain increase due to the

effects of global competition, rapid price fluctuations, surging oil prices, short product life

cycles, expanded specialization, near-/far- and off-shoring, and talent scarcity.

SCM 2.0 leverages proven solutions designed to rapidly deliver results with the agility to

quickly manage future change for continuous flexibility, value and success. This is delivered

through competency networks composed of best-of-breed supply chain domain expertise to

understand which elements, both operationally and organizationally, are the critical few that

deliver the results as well as through intimate understanding of how to manage these

elements to achieve desired results. Finally, the solutions are delivered in a variety of

options, such as no-touch via business process outsourcing, mid-touch via managed

services and software as a service (SaaS), or high touch in the traditional software

deployment model.

Distributionby Mc Donalds India :-

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 CENTRERS :-


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Noida and kalamboli(Mumbai)..1996

Bengaluru..2004

Kolkata2007

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 CHAINA 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.

STEPS INVOLVED IN COLD CHAIN CONCEPT

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 2C 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 1-4C

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 from Ooty, mutton patties from Hyderabad and

sesame seed buns from Punjab were all delivered to Radhakrishna Foodland Private Limited

(RFPL) distribution centre (cold storage) in its refrigerated vans. RFPL stored the products in

controlled conditions in Mumbai and New Delhi and supplied them to McDonald's outlets on

a daily basis.

By transporting the semi-finished products at a particular temperature, the cold chain

ensured freshness and adequate moisture content of the food. The specially designed trucks

maintained the temperature in the storage chamber throughout the journey. Drivers were

instructed specifically not to switch off the chilling system to save electricity, even in the

event of traffic jam.Below mentioned is the data about Refrigerated vans for McDonald's


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Radhakishana food land(distribution centre- delhi and mumbai)

Amrit food(long life UHT milk and milk products for frozen desserts)

Radhakrishna Foodland

Radhakrishna Foodland (P) Ltd. ["Foodland"] is a part of the Radhakrishna Group, which is

engaged in food and related service businesses.

From July 1993, much before McDonald's started its operations in India, sincere efforts were

made by Foodland to carefully understand McDonald's operations and requirements for the

Indian market. Better facilities and infrastructures were created and new systems were

adopted to satisfy McDonald's demands. Finally, all those efforts put in by Foodland

culminated into a handshake agreement with McDonald's India, to serve as Distribution

Centres for their restaurants in Mumbai.

The division has focused all its resources to meet McDonald's expectation of 'Cold, Clean

and On-time Delivery'. From this evolved the mission statement, "To ensure that allMcDonald's restaurants are supplied without interruption, products conforming to acceptable

standards at lowest local costs to the system."

The Distribution Centre (DC) is responsible for procurement, quality inspection programme,

storage, inventory management, deliveries to the restaurants and data collection, recording

and reporting. Value added services like repacking of promotional items are also carried out

at the DC. The DC plays a very vital role in maintaining the integrity of the products

throughout the entire 'cold chain' - the distribution system that ensures the products, which

arrive at McDonald's restaurants from suppliers all over India, are absolutely fresh and as

per McDonald's Quality Standards. All these operations need to be managed in the most

cost- effective manner. The operations and accountings are totally transparent and are

subject to regular auditMcDonald's introduced Foodland to F. J. Walkers of Australia, whichresulted in an affiliation between the two companies to develop the distribution set-up in

India. The association has helped Foodland to refine its operations to achieve the following:

Designing and establishing the distribution system to handle large volumes.

Engineering the storage and delivery network to service the unique requirements at

each of the customer's locations.

Devising delivery schedules to minimise business interruption and maximise

efficiency so that store managers know exactly what to expect and when.

Maintaining open communication lines with customers, suppliers and all businessassociates.

Emerging as a key system player after realising the inter-dependence of all the

associates in the McDonald's business system.

Transferring some of the good distribution practices to other divisions of the group.


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The company has also invested in ERP Software to bring in efficiency, speed and accuracy

into the system. Foodland is the first Indian company engaged in such business to have

customized software for smoother operations

Trikaya Agriculture

McDonald's Supplier Of Fresh Iceberg Lettuce

McDonald's India benefits other Indian businesses through local sourcing. Worldwide, too,

McDonald's has brought benefits consistently to the community by working with local

businesses, which could grow as McDonald's grew. By forming partnerships with the local

suppliers, based on trust and the mutual desire to grow, McDonald's has set the stage for

enormous success for a large number of companies from which it purchases supplies and

services.

Working with these local suppliers, McDonald's and its international supplier network have

helped transfer advanced technology and state-of-the-art procedures in the areas ofagriculture, food processing, warehousing and distribution, restaurant equipment

manufacturing, restaurant operations and other disciplines related to the food service

industry to them.

For example, McDonald's partnership with local produce suppliers has stimulated the

introduction of new farming techniques and widened geographic areas of production.

Agricultural suppliers to the company are now employing the most current farming practices

- resulting in better cropping patterns, greater yields, higher farm income and increased jobs

within the rural farming sector.

One of the best examples of this supplier development is Trikaya Agriculture, McDonald's

supplier of fresh iceberg lettuce. Initially lettuce could only be grown during the wintermonths 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

assistance in the selection of high quality seeds, exposed the farms to advanced drip -

irrigation technology and helped develop a refrigerated transportation system allowing a

small agro - business in Maharashtra to provide fresh, high quality lettuce to McDonald's

urban restaurant locations thousands of kilometers away. Today, Trikaya Agriculture is a

major supplier of iceberg lettuce to McDonald's India for its Indian operations.

Exposure to better agricultural management practices and sharing of advanced agricultural

technology with McDonald's has made Trikaya Agriculture extremely conscious of delivering

its products with utmost care and quality. Its post harvest facilities include a cold chain

consisting of a vacuum pre-cooling room to remove field heat, a large cold room and a

refrigerated van for transportation where the temperature and the relative humidity of this

crop is maintained between 1C and 4C and 95% respectively. Vegetables are in the pre-

cooling room within half an hour of harvesting. The pre-cooling room ensures rapid cooling

to 2C within 90 minutes. The pack house, pre-cooling and cold room are located at the

farms itself, ensuring no delay between harvesting, pre-cooling, packaging, and cold

storage. Thus resulting in f reshness and no spoilage.


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Besides supplying to McDonald's, Trikaya Agriculture has also a plan to export this high

value product to other international markets, especially to McDonald's Middle East

operations. McDonald's expertise in packaging, handling and long distance transportation

has helped Trikaya to do trial shipments to the Gulf successfully and a large amount of snow

peas to Austrian markets.

In addition to export, McDonald's assistance has enabled Trikaya Agriculture to supply thiscrop to a number of star-rated hotels, clubs, flight kitchens and offshore catering companies

all over India.

Trikaya Agriculture's association with McDonald's India is typical of McDonald's commitment

to local sourcing and the opportunity this provides to the suppliers to expand their business,

have access to the latest in food processing technology and acquire exposure to advanced

agricultural practices

Dynamix Dairy

McDonald's Supplier of Cheese

Towards fulfilling its commitment to sourcing almost all of its products from local suppliers,

McDonald's has identified local Indian businesses, which share its level of commitment and

dedication in satisfying customers by supplying them the highest quality products.

The relationship between McDonald's and its Indian suppliers benefits both parties. For

McDonald's - world-class products of the highest quality are readily available from local

sources. For the suppliers it is an opportunity to expand their business, have access to the

latest technology and exposure to advanced practices; in addition to the ability to grow as

McDonald's expands in India. Through McDonald's, the suppliers also get access to

overseas markets to export their products.

One of the best example of this supplier relationship is evident in the case of the multi croreDynamix Group, McDonald's supplier of cheese in India. McDonald's India has approved

Dynamix Dairy, Baramati (Maharashtra) for the supply of cheese to its restaurants, which

has 100% computer control, high tech automation equipment.

Baramati is small district, which has a large number of milch cattle. However, average land

holding per farmer is very low and the farms are scattered across the countryside. Due to

this scattering of farms, there are long times lapses between the milking of the cows and the

final refrigeration of the milk at the diary farm. The lack of proper refrigeration can impact the

quality of milk - and the farmer does not get a good price for his product.

Owing to the lack of infrastructure in Baramati, milk producers were not able to channel the

surplus milk to places outside Baramati. Within the region, the market was

Vista Processed Foods Pvt. Ltd.

McDonald's SupplierOfChicken And VegetableProducts:-

Vista Processed Foods Pvt. Ltd., McDonald's suppliers for its chicken and vegetable range

of products, is another important player in this cold chain. Technical and financial support


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extended by OSI Industries Inc., USA and McDonald's India Private Limited have enabled

Vista to set up world-class infrastructure and support services.

This infrastructure includes hi-tech refrigeration plants for manufacture of frozen food at

temperatures 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.

Vista now offers a very wide range of frozen and nutritious chicken and vegetable products.

Ongoing R&D, both locally and in the parent companies, work towards innovation in taste,

nutritional value and convenience. These products, besides being supplied to McDonald's,are also offered to institutions like star-rated hotels, hospitals, project sites, caterers,

corporate canteens, schools and colleges, restaurants, food service establishments and

coffee shops.

McDonald's India's Cold Chain

Spreading The Spirit Of Enterprise All Over India

A unique sense of dedication and commitment characterizes McDonald's India - a

commitment to be driven by the leadership of local owners. Commitment to provide quality

products and fast friendly service at a real value to support other Indian businesses through

local sourcing and imparting new skills and to generate local employment by being a part ofthe local culture. This commitment has translated into enduring benefits to the businesses at

the grass root level, in the areas of introduction of new crops, new agricultural practices and

food processing methods and procedures.

McDonald's unique 'cold chain', on which the QSR major has spent more than six years

setting up in India, has brought about a veritable revolution, immensely benefiting the

farmers at one end and enabling customers at retail counters get the highest quality food

products, absolutely fresh and at great value.

Explaining the concept, Mr. Amit Jatia, Joint Venture Partner & Managing Director,

McDonald's - Western India, said, "Every year, Rs. 50,000 crore worth of food produce is

wasted in India because of lack of proper infrastructure for storage and transportation under

controlled conditions. These range from physical damage and vermin infestation to improper

temperature, humidity and air-flow."

"McDonald's, through its unique cold chain, has been able to both cut 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 perishable food products, all under controlled temperatures.


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Setting up this extensive cold chain distribution system has involved the transfer of state-of-

the-art food processing technology by McDonald's and its international suppliers to

pioneering Indian enterprises who, today, are an integral part of the McDonald's cold chain.

From Field To 2C In 90 Minutes

Trikaya Agriculture, a major supplier of iceberg lettuce to McDonald's India, is one suchenterprise that is an intrinsic part of the cold chain. Exposure to better agricultural

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 assistance in the selection of high quality seeds, exposed the

farms to advanced drip-irrigation technology, and helped develop a refrigerated

transportation system allowing a small 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 humidity of the crop is maintained between 1C and 4C 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 2C within 90 minutes.

The pack house, pre-cooling and cold room are located at the farms itself, ensuring no delay

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 Middle East and Asia Pacific operations. McDonald's expertise in packaging, handling and long-distance

transportation has helped Trikaya to do trial shipments to the Gulf successfully.

In addition to export, McDonald's assistance 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.

Flavour And Freshness Locked In At - 35C

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 enabledVista to set up world-class infrastructure and support services.

This includes hi-tech refrigeration plants for manufacture of frozen food at temperatures as

low as - 35C. 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


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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.

Vista now offers a very wide range of frozen and nutritious chicken and vegetable products.

Ongoing R&D, both locally and in the parent company, work towards innovation in taste,nutritional value and convenience. These products, besides being supplied to McDonald's,

are also offered to institutions like star-rated hotels, hospitals, project sites, caterers,

corporate canteens, schools and colleges, restaurants, food service establishments and

coffee shops. Today, production 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.

Amrit Food (Supplier of long life UHT Milk and Milk Products for Frozen

Desserts):-

Amrit Food, an ISO 9000 company, manufactures widely popular brands Gagan Milk and

Nandan Ghee at its factory at Ghaziabad, Uttar Pradesh.

The factory has:

y State-of-the-art fully automatic machinery requiring no human contact with product,

for total hygiene.

y Installed capacity of 6000 ltrs/hr for producing homogenized UHT (Ultra High

Temperature) processed milk and milk products.

y Strict quality control supported by a fully equipped quality control laboratory.

All suppliers adhere to Indian government regulations on food, health and hygiene while

continuously maintaining McDonald's recognized standards. As the ingredients move from

farms to processing plants to the restaurant, McDonald's Quality Inspection 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

Hazard Analysis Critical Control Point (HACCP) is a systematic approach to food safety that

emphasizes prevention 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. AsMcDonald's expands in India, the supplier gets the opportunity to expand his business, have

access to the latest in food technology, exposure 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 benefited from their association with McDonald's India.

OUR SUPPLIERS FOCUSED ON THE 3E'S, ETHICAL, ENVIRONMENTAL,

ECONOMIC:-


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The McDonalds supply chain is a complex web of direct and indirect suppliers. We manage

this complex system by working with direct suppliers who share our values and our vision for

sustainable supply. We hold them to clear standards for quality, safety, efficiency and

sustainability. We expect them to extend those requirements to their suppliers. We also

partner with them to identify, understand and address industry-wide sustainability challenges

and achieve continuous improvement. Overall, McDonalds and its suppliers are collectively

focused on three responsibility areas: ethical, environmental and economic.

REFERENCES:-

y SUPPLYCHAIN MANAGEMENT BY CHOPRA , MEINDL AND KALRA.

y www.mcdonaldsindia.com

y Wikipedia

y Articlesand Magazines

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Documents

Sclm Final Write Up