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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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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In Search of Perfect Logistics - The Story of the Cold Chain

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.

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

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...

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 26 to 3...


Exhibit I: Mcdonald's - Financial Performance Summary
Exhibit Ii: Mcdonald's in Mexico
Exhibit Iii: Mcdonald's in Moscow

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