McDonald's Food Chain
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Case Details:
Case Code : OPER001
Case Length : 10 Pages
Period : 1996 - 2002
Organization : McDonalds
Pub Date : 2002
Teaching Note : Available
Countries : Sweden
Industry : Food, Beverage and Tobacco
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
In Search of Perfect Logistics - The Story of the Cold Chain
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In 1996, when McDonald's entered India, it was looking for a distribution agent
who would act as a hub for all its vendors. Mumbai-based Radhakrishna Foodland
Private Limited (RFPL) was chosen for the job as it was already a distributor
for its sister concern, Radhakrishna Hospitality Services, a catering unit
supplying to offshore institutions. The iceberg lettuce from Ooty, mutton
patties from Hyderabad and sesame seed buns from Punjab were all delivered to
RFPL's 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.
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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...
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Outsourcing at its Best
McDonald's sourced ingredients from all parts of India. (Refer Table I).
The iceberg lettuce was specially developed for India using a new
culture farming technique. This variety of lettuce was similar to the
lettuce McDonald's used elsewhere in the world. To meet the demand
consistently, McDonald's helped Trikaya Agriculture grow the lettuce
throughout the year and even in rain-shadow areas. The crop was
harvested between 45 days, depending on the climate. The crop was
harvested early in the morning and immediately stored in vacuum
pre-coolers installed at the farm. The pre-cooler brought down the
temperature of the lettuce from 26º to 3º... |
Exhibits
Exhibit I: Mcdonald's - Financial Performance Summary
Exhibit Ii: Mcdonald's in Mexico
Exhibit Iii: Mcdonald's in Moscow
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