McDonald's FOOD CHAIN

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. 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.

FIGURE I
JOURNEY THROUGH THE COLD CHAIN

Source: Business India, October 4, 1999.

“This centralized distribution system is unique to McDonald's. We have to ensure that the integrity of the product is maintained throughout the cold chain,” said H. Shriram (Shriram), General Manager, Distribution Centre, RFPL. FJ Walker of Australia, a McDonald's partner, helped RFPL build a cold storage in Thane. Another cold storage with equipment worth about Rs.75 lakh was built in Delhi in 1998.

RFPL also handled McDonald's inventory management. It had to anticipate future requirements and contingencies and plan for optimum utilization of the refrigerated vehicles. Meeting McDonald's “cold, clean, on-time” delivery standards was no easy task considering that there were 30 suppliers situated all over the country. AFL Logistics Ltd (ALL), a joint venture between and Coughlin of the US, and RFPL was responsible for ensuring these standards.