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Mc DONALDS
SUPPLY CHAIN

INTRODUCTION
Leading global food service retailer
36, 000 local restaurants, 68 million people,
more than 119 countries
Hamburgers, Chicken sandwich, French fries,
soft drinks, breakfast items and desserts
Local deviation from the standard menu
Abide by regional taboos

McDonalds IN INDIA
Entered India in 1996 through a joint venture
with Hardcastle Restaurants Pvt. Ltd. and
Connaught Plaza Restaurants Pvt. Ltd.
160 restaurants in India
Special menu with vegetarian selection, no beef
Products using Indian spices - McVeggieburger,
McAloo Tikki burger
Indian local suppliers provide McD with highest
quality freshest ingredients

Mc Donalds SUPPLY CHAIN IN INDIA

Source all its requirements from within India

Developed local business
Works with 38 different local suppliers
Trained local farmers to produce according to their
specification
Worked with vendor to get the perfect cold chain in place
Distribution centers Noida, Kalamboli, Bangalore,
Kolkata
Cold chain Unique concept of McD supply chain in
India

McDonalds SQMS assessment

SUPPLIER QUALITY MANAGEMENT SYSTEM

The McDonalds Supplier Quality Management System

(SQMS) standard applies to companies who supply food
products into the McDonalds fast food chain.
This does not apply to the suppliers of meat, who must
comply with a different McDonalds standard.
The standard is intended to help McDonalds to supply
consistently safe products of the highest quality that
meet their requirements, as well as all applicable laws
and regulation.
Conducted by various third party inspection body.
Eg: Lloyd's Register Quality Assurance Ltd ; Telarc

McDonalds SQMS assessment

SUPPLIER QUALITY MANAGEMENT SYSTEM

1 ) Quality management system

General requirements
Documentation requirements
Regulatory considerations
2) Management responsibility
Management commitment
Food Safety and quality policies
Quality management system planning
Responsibility, authority and communication
Provision of resources
Management review

McDonalds SQMS assessment

SUPPLIER QUALITY MANAGEMENT SYSTEM

3) Crisis management
The crisis management plan shall include elements such as a
contingency plan (current and documented) including
alternative product sourcing, current emergency contact lists
(including a person to lead effort and appointed spokesperson),
implementation requirements (individuals / departments)
involved in crisis management, checklist of required activities
and root cause analysis after the crisis with corrective actions.
Prior to implementing any alternative or contingency product
sourcing (whether raw material, packaging or finished product),
McDonalds must be involved in the review and approval of these
sources.

McDonalds SQMS assessment

SUPPLIER QUALITY MANAGEMENT SYSTEM

5)Quality product realization

Employee training
Facility and grounds
Facility security
Work environment
Equipment and utensils
Pest management

6)Food safety system

HACCP system (Hazard analysis and critical control points)
Testing
Food allergens and sensitivities

McDonalds SQMS assessment

SUPPLIER QUALITY MANAGEMENT SYSTEM

7)McDonalds product requirements

Vendor requirements
Verification of conformity to raw material specification
McDonalds product specification
Sensory attributes and evaluations
Process validation and capability

8)Verification and continuous improvement

Customer satisfaction
Types of verification

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McDonalds SQMS assessment

INSPECTION PROCESS

Suppliers should contact McD to start the inspection

process. One of McD auditors will talk you through the
application and audit process.
McDonalds products must be in production at the time
of the onsite audit.
The timing of the audits is generally on an annual basis.
You will be provided with a report following the audit
identifying any areas for improvement.
Audits may be combined with other audit activity, saving
you time and money.
Certificates will be provided by McDonalds.

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COLD CHAIN PARTNERS

BEHIND THE Big Mac

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COLD CHAIN PARTNERS

1. Dynamic Dairy Industries - Supplier of Cheese
Baramati, Maharashtra
Immense benefit to farmers by setting up a network of milk
collection centres equipped with bulk coolers
From farm two degrees Celsius in 90 minutes
Fully automatic international standard processing facility
Capability to convert milk into cheese, butter/ghee, skimmed
milk powder, lactose, casein & whey protein and humanized
baby food
Stringent quality control measures and continuous Research
& Development

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COLD CHAIN PARTNERS (Cont.)

2. Trikaya Agriculture-Supplier of Iceberg Lettuce

Talegaon, Maharashtra
Grow lettuce all year round with the help of experts from Mc Donalds
A specialized nursery with a team of agricultural experts
Vegetables are moved into the pre-cooling room within half an hour of
harvesting.
The pre-cooling room ensures rapid vacuum cooling to 2 C within 90
minutes.
The pack house, post-cooling and cold room are located at the farms
itself, ensuring no delay between harvesting, pre-cooling, packaging and
cold storage
Refrigerated truck for transportation.

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COLD CHAIN PARTNERS (Cont.)

3. Radhakrishna Foodland -Distribution centers for Delhi and
Mumbai
Thane, Maharashtra
Handles large volumes
Services include procurement, quality inspection, storage, inventory
management, deliveries, data collection, recording and reporting
Dry and cold storage facility to store and transport perishable
products at temperatures upto -22 Degree Cel.
Effective process control for minimum distribution cost
Variety of items coming from across India, stored in rooms with
different temperature zones and are finally dispatched to the
McDonald's restaurants on the basis of their requirements
Very vital role in maintaining the integrity of the products

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COLD CHAIN PARTNERS (Cont.)

4. Amrit Food- Supplier of long life UHT Milk and Milk Products for
Frozen Desserts

Ghaziabad, Uttar Pradesh

ISO 9000 company
Manufacture widely popular brands Gagan Milk and Nandan Ghee
State-of-the-art fully automatic machinery requiring no human
contact with product, for total hygiene.
Installed capacity of 6000 ltrs/hr for producing homogenized UHT
(Ultra High Temperature) processed milk and milk products.
Strict quality control supported by a fully equipped quality control
laboratory.

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COLD CHAIN PARTNERS (Cont.)

5. Vista Processed Foods Pvt. Ltd. -Supplier of Chicken and
Vegetable range of products including Fruit Pies
Taloja, Maharashtra.
Produces a range of frozen chicken and vegetable foods

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COLD CHAIN PARTNERS (Cont.)

Opportunity:
In India, recent reports suggest a declining trend in rice and wheat
production due to reduced soil nutrients. Inappropriate fertilizer
application and declining soil organic content have created soil
imbalances and raised environmental costs, so farmers must continually
monitor nutrients. Regardless of location or size, all Vista farms are
prone to soil degradation from erosion, poor crop productivity, and
higher use of chemical fertilizers

Results:
Vista supplier farms are increasing their use of organic manures, vermicompost, micronutrients and bio-fertilizers to consistently improve in
productivity and product quality, such as freshness and extended shelf
life. Yield has increased by about 25% in the last three years. Village soil
nutrient mapping has helped farmers make sustainability decisions about
reclaiming soil and discontinuing cultivation of some crops .

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THANK YOU