Mcdonald'S Supply Chain Management Case Study

Value-added services like shredding of lettuce, re-packing of promotional items continued since then at the centers playing a vital role in maintaining the integrity of the products throughout the entire ‘cold chain’.

The complete supply chain of the Mc Donalds is operated over the Emac e-procurement model.

Mc Donald’s India today purchases more than 96% of its products and supplies from Indian suppliers. Mc Donald’s has a total of 40 suppliers in which 14 are the core suppliers, known as Tier-1 suppliers, they supply directly to the fast food chain: Radha Krishna Foodland serves distribution centres to Mc Donalds across the country.

The deep-seated culture for long-term, win-win relationships with suppliers dates back to Mc Donald’s inception, when founder Ray Kroc established a precedent of trust and loyalty.

Kroc believed that if the restaurant owner/operators and suppliers were successful, success would come to him as well.

As consumer and regulatory standards increase, companies from Nike to CVS are trying to take control of their supply chain to improve oversight and synergies.

But the Mc Donald's case study shows, sometimes, operating a fully horizontal supply chain is more effective, assuming positive relationships with suppliers.

While Kroc had the vision, he knew he needed to rely on the suppliers and restaurant owner/operators for implementation.

Rule 3: Agree On Clearly Defined & Measureable Outcomes While food safety and quality is at the top of what Mc Donald’s measures with suppliers, it’s only part of the picture.

Mc Donalds opened its doors in India in October 1996. owns and operates Mc Donald’s restaurants in Western India. Ltd headed by Vikram Bakshi owns and operates the Northern operations.

Mc Donald’s in India is a 50–50 joint venture partnership between Mc Donald’s Corporation [USA] and two Indian businessmen. The company has a 100 percent outsourced supply chain, which is a rare case in industry giants.