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Deconstructing the McDonald’s supply chain efficiency, straight from the horse’s mouth. What works and what certainly does not!
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. McDonald’s unique ‘cold chain’ – which the QSR major spent more than six years for 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. 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.
Trikaya Agriculture, a major supplier of iceberg lettuce to McDonald’s India, is one such enterprise 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. 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. 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.
Financial support extended by OSI Industries Inc., USA and McDonald’s India Private Limited have enabled Vista Processed Foods 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 - 35°C. 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. 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.
McDonald’s supplier of cheese, Dynamix Dairy, recognising the need for quality milk to make quality cheese, has set up a dedicated quality programme for milk procurement. It has made significant investments in setting up bulk coolers at all milk collection centres in the Baramati area, where it is based. On receipt, the milk is immediately stored in the bulk coolers at the collection centres, to prevent growth of bacteria in the milk and preserve its freshness – thus, maintaining the ‘cold chain’.
McDonald’s local supply networks through Radhakrishna Foodland, which operates distribution centres (DCs) for McDonald’s restaurants in Mumbai and Delhi. Ranging from liquid products coming from Punjab to lettuce from Pune, the DC receives items from different parts of the country. All these suppliers share McDonald’s commitment and dedication to satisfying customers by supplying them the highest quality products. They work cohesively to ensure that the final product reaches the customer consistently each time and every time.
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Source : IIPM Editorial, 2009
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
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