Mcdonalds Final.ppt

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1、PROJECT ONSUPPLY CHAIN MANAGEMENTPerishable Products (Restaurant Chain)Group MembersNikhil Jadhav (8126)Asif Shaikh (8150 )Pooja Shetty (8153)Sunil Singh (8155)Imran Khan (8185)Ashwin Kodati (8187)OBJECTIVE : Understand the markets basic requirements of the product. Market potential of the product C

2、ompetitive environment of the chosen product market dynamics in terms of consumer behavior about the product Detail information on the Supply Chain Mfg locations in India How product reaches to consumer? Criticality/significance of the Supply chain Who are all intermediate in between of Mfg to final

3、 consumer e.g dealer, C&F agent, depot etc Describe role of each intermediate in the supply chain Understand the markets basic requirements of the product. Market potential of the product Competitive environment of the chosen product Market dynamics in terms of consumer behavior about the product De

4、tail information on the Supply Chain Mfg locations in India How product reaches to consumer? Criticality/significance of the Supply chain Who are all intermediate in between of Mfg to final consumer e.g dealer, C&F agent, depot etc Describe role of each intermediate in the supply chainMCDONALDS CORP

5、ORATIONMcDonalds Vision, Mission and ValueVision To be the best & leading fast food providers around the globeMission To be the worlds best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in ever

6、y restaurant smile. Values Our values summarized in “Q.S.C & V”. Provide good quality, services to customer . Have cleanliness environment when customer enjoys their meal .The value of food product makes every customer is smiling.Quick Facts About McDonalds McDonalds was started as a drive-in restau

7、rant by two brothers, Richard and Maurice McDonald in California,US in the year 1937. By mid-1950s, the restaurants revenues had reached $350,000. Ray Kroc, distributor for milkshake machines, expressed interest in the business, and he finalized a deal for franchising with the McDonald brothers in 1

8、954. He established a franchising company, the McDonald System Inc. and appointed franchisees. In 1961, he bought out the McDonald brothers share for $2.7 million and changed the name of the company to McDonalds Corporation. In 1965, McDonalds went publicMcDonalds In India 1996 - First restaurant op

9、ens in India, at Basant Lok,Vasant Vihar, New Delhi.McDonalds India is a 50 50 JV partnership between McDonalds Corporation (U.S.A) and two Indian businessman Amit Jatia (Hardcastle Restaurants Private Limited, Mumbai)and Vikram Bakshi (Connaught Plaza Restaurants Private Limited, Delhi).Two separat

10、e operations in Northern & Western India.Partners and their management teams trained extensively in Indonesia & the U.S.Approximately 75% of the menu available in McDonalds in India is Indianized and specifically designed to woo Indian customers.The McDonalds philosophy of QSC&V is the guiding force

11、 behind its service to the customers.Market potential of the McDonaldsMcDonalds has built up huge brand equity. It is the No. 1 fast-food company by sales, with more than 31,000 restaurants serving burgers and fries in almost 120 countries. Sales, 2007 (11,4009 million), 5.6% sales growthJoint ventu

12、res with retailers (e.g. supermarkets). Consolidation of retailers likely, so better locations for franchisees. Respond to social changes - by innovation within healthier lifestyle foods. Its move into hot baguettes and healthier snacks (fruit) has supported its new positioning. Use of CRM, database

13、 marketing to more accurately market to its consumer target groups. It could identify likely customers (based on modeling and profiles of shoppers) and prevent brand switching. Strengthen its value proposition and offering, to encourage customers who visit coffee shops into McDonalds. The new “forma

14、ts”, McCafe, having Wifi internet links should help in attracting segments. Also installing childrens play-parks and its focus on educating consumers about health, fitness. Continued focus on corporate social responsibility, reducing the impact on the environment and community linkages. Internationa

15、l expansion into emerging markets of China and India. Competitive environment of the Restaurant Chain (MCD) Competitive environment McDonalds India: Channel NetworkMcDonalds India: Network &competitorsHow product reaches to consumer? Criticality/significance of the Supply chainGeographically Diverse

16、 suppliers: Ensuring stringent quality standardsSupplier performance indexImportBreath of supplyprocess control equipmentNo direct control over issues, positive influence by raising questions, bringing people to the table and encouraging improvementThe McDonalds Supply ChainVALUE CHAIN ANALYSIS OF M

17、CDONALDSInbound LogisticsOrganizing the supply of food and materials to restaurants through approved third party logistics operators.Production in huge plants denoted exclusive to McDonalds control food distribution and packaging systemInbound logisticsTechnological DevelopmentHuman Resource Managem

18、entFirm InfrastructureProcurementInbound LogisticsOperationsOutboundLogisticsServiceRelatively Few Management Layers to Reduce OverheadEffective Training Programs to Improve Worker Efficiency and Effectiveness Timing of Asset PurchasesEfficient Plant Scale to Minimize Manufacturing CostsSelection of

19、 Low Cost Transport CarriersDelivery Schedule that Reduces CostsProducts Priced to Generate Sales VolumeSmall, Highly Trained Sales ForceInvestments in Technology in order to Reduce Costs Associated with Manufacturing ProcessesFrequent Evaluation Processes to Monitor Suppliers PerformancesPolicy Cho

20、ice of Plant TechnologyOrganizational LearningEfficient Order SizesOperationsR&D in field research needs of end users. quality development in collaboration with good suppliersForward integration: through franchisees with control over store presentation, menu items etc. and enhance participation in p

21、rocess improvementOperations Technological DevelopmentHuman Resource ManagementFirm InfrastructureProcurementOutboundLogisticsMarketing & SalesServiceSelection of Low Cost Transport CarriersDelivery Schedule that Reduces CostsNational Scale AdvertisingProducts Priced to Generate Sales VolumeSmall, H

22、ighly Trained Sales ForceEffective Product Installations to Reduce Frequency and Severity of RecallsFrequent Evaluation Processes to Monitor Suppliers PerformancesEfficient Order SizesInterrelationships with Sister UnitsOutboundLogisticsIs the concern of the franchisee.Outbound logistics are growing

23、 as a part of McDonalds recycling system integrating in the logistics of distribution centerOutbound logisticsTechnological DevelopmentHuman Resource ManagementFirm InfrastructureProcurementInbound LogisticsOperationsOutboundLogisticsMarketing & SalesServiceMARGINMarketing & SalesLong term marketing

24、 objectives are broken down into shorter term measurable targets, which McDonald uses as milestones.Country teams are given autonomy in marketing mix decision.Advertising & PR is outsourced (Mudra agency in India)Marketing Technological DevelopmentHuman Resource ManagementFirm InfrastructureProcurem

25、entInbound LogisticsOperationsOutboundLogisticsMarketing & SalesServiceServiceServices provided by the companies enrollment standardsService Technological DevelopmentHuman Resource ManagementFirm InfrastructureProcurementInbound LogisticsOperationsOutboundLogisticsMarketing & SalesServiceProcurement

26、Sought partners with expertise on down trade distributionProcurement Technological DevelopmentHuman Resource ManagementFirm InfrastructureProcurementInbound LogisticsOperationsOutboundLogisticsMarketing & SalesServiceTechnological DevelopmentTechnology and development research in quality assurance,

27、and packing readdressed at lower cost, faster delivery chain system and process control equipments, recycling system.R & DTechnological DevelopmentHuman Resource ManagementFirm InfrastructureProcurementInbound LogisticsOperationsOutboundLogisticsMarketing & SalesServiceHuman Resource ManagementHRM s

28、pecialists in R&D and expertise in food formulation, education to raise awareness of issues and raise demand. The addressing environmental issues and CRS.HRM SupportActivitiesTechnological DevelopmentHuman Resource ManagementFirm InfrastructureInbound LogisticsOperationsOutboundLogisticsMarketing &

29、SalesServiceFirm InfrastructureStrong real estate portfolio.International organization more than 50000 employees works in more than 50 countries, INFRASTRUCTUREProcess: Who are all intermediate in between of Mfg to final consumer. Describe role of each intermediate in the supply chainVital links of

30、Mc Donalds cold chain. McDonalds spent a few years setting up a unique Cold Chain. The Cold Chain is necessary to maintain the integrity of food products and retain their freshness and nutritional value. Procurement warehousingTransportation Retailing of food productSUPPLIERSTrikaya AgricultureSuppl

31、ier of Iceberg LettuceVista Processed Foods Pvt. Ltd.Supplier of Chicken and Vegetable range of products (including Fruit Pies)Dynamix DiarySupplier of CheeseAmrit FoodSupplier of long life UHT Milk and Milk Products for Frozen DessertsDistributionRadhakrishna FoodlandDistribution Centres and cold s

32、torages.Completely dedicated distribution and supply chain. Matching supplier production with deliveries using ERP.Quality inspection Program, quality check at 20 different points in supply chain.HACCP(Hazard analysis critical control points) food safety standards emphasizing prevention of faults.The five main performance objectives are: Speed Cost Quality Dependability Flexibility