Free Essay

Business Selling

In: Business and Management

Submitted By harwantsingh
Words 1015
Pages 5
Distribution channel
Preproduction
It talks about the suppliers, who are responsible for suppling the Raw material and ingrediants to McD in India. The company spent 6 years and around Rs. 450 crore to set up the food supply chain even before opening its first restaurant in the country. Sincere efforts were made by suppliers to carefully understand McDonald's operations and requirements for the Indian market. Better facilities and infrastructures were created and new systems were adopted to satisfy McDonald's demands. McD suppliers are :
Radhakrishna Foodland
Radhakrishna Foodland (P) Ltd. ["Foodland"] is a part of the Radhakrishna Group, which is engaged in food and related service businesses. Finally, all those efforts put in by Foodland culminated into a handshake agreement with McDonald's India, to serve as Distribution Centres for their restaurants in Mumbai.
The division has focused all its resources to meet McDonald's expectation of 'Cold, Clean and On-time Delivery'. From this evolved the mission statement, "To ensure that all McDonald's restaurants are supplied without interruption, products conforming to acceptable standards at lowest local costs to the system."
Trikaya Agriculture
McDonald's Supplier Of Fresh Iceberg Lettuce
McDonald's partnership with local produce suppliers has stimulated the introduction of new farming techniques and widened geographic areas of production. Agricultural suppliers to the company are now employing the most current farming practices - resulting in better cropping patterns, greater yields, higher farm income and increased jobs within the rural farming sector.
One of the best examples of this supplier development is Trikaya Agriculture, McDonald's supplier of fresh iceberg lettuce. Initially lettuce could only be grown during the winter months but with McDonald's expertise in the area of agriculture, Trikaya Farms in Talegaon, Maharashtra, is now able to grow this crop all the year round.
McDonald's has provided assistance in the selection of high quality seeds,and helped to develop a refrigerated transportation system allowing a small agro - business in Maharashtra to provide fresh, high quality lettuce to McDonald's urban restaurant locations thousands of kilometers away. Today, Trikaya Agriculture is a major supplier of iceberg lettuce to McDonald's India for its Indian operations.
Potato Farming
Potato Farming In Gujarat
In 1991, McDonald's was looking for a particular variety of potato for manufacturing its world famous French fries. One of McDonald's suppliers - Lamb Weston - invested heavily in setting up production lines to process these potatoes and make the fries. However, production was discontinued, as the right quality of potatoes could not be sourced.
The variety of potato required by McDonald's had to have a certain length, high solids content and low moisture content while the ones that were available were of the table-grade variety. Nonetheless, as per its initial commitment to local sourcing, McDonald's and its supplier partner, McCain Foods Pvt. Ltd., began to work closely with farmers in Gujarat and Maharashtra to develop process-grade potato varieties.
Leaders in agronomy, technology and innovation, McCain Foods Pvt. Ltd. partnered with McDonald's to work with farmers in Gujarat (specifically the towns of Deesa and Kheda) to interact with agronomists and field assistants to demonstrate the best practices - right from better agronomy techniques like irrigation system, sowing seed treatments, planting methods, fertilizer application programmes and better storage methods for the produce. In addition to this, the farmers also benefit through incremental monetary gains as they sell directly to McCain Foods Pvt. Ltd. instead of commission agents. The result of these efforts has been that now the Gujarat potato crop has been utilised to make McDonald's ‘Chatpatey' Potato Wedges.

Dynamix Dairy
McDonald's Supplier of Cheese
Towards fulfilling its commitment to sourcing almost all of its products from local suppliers, McDonald's has identified local Indian businesses, which share its level of commitment and dedication in satisfying customers by supplying them the highest quality products.
The relationship between McDonald's and its Indian suppliers benefits both parties. For McDonald's - world-class products of the highest quality are readily available from local sources. For the suppliers it is an opportunity to expand their business, have access to the latest technology and exposure to advanced practices; in addition to the ability to grow as McDonald's expands in India. Through McDonald's, the suppliers also get access to overseas markets to export their products.
One of the best example of this supplier relationship is evident in the case of the multi crore Dynamix Group, McDonald's supplier of cheese in India. McDonald's India has approved Dynamix Dairy, Baramati (Maharashtra) for the supply of cheese to its restaurants, which has 100% computer control, high tech automation equipment.

Vista Processed Foods Pvt. Ltd.
McDonald's Supplier Of Chicken And Vegetable Products
Vista Processed Foods Pvt. Ltd., McDonald's suppliers for its chicken and vegetable range of products, is another important player in this cold chain. Technical and financial support extended by OSI Industries Inc., USA and McDonald's India Private Limited have enabled Vista to set up world-class infrastructure and support services.
This infrastructure includes hi-tech refrigeration plants for manufacture of frozen food at temperatures as low as - 35° C. This is vital to ensure that the frozen food retains it freshness for a long time and the 'cold chain' is maintained. The frozen product is immediately moved to cold storage rooms.
Vista now offers a very wide range of frozen and nutritious chicken and vegetable products. Ongoing R&D, both locally and in the parent companies, work towards innovation in taste, nutritional value and convenience. These products, besides being supplied to McDonald's, are also offered to institutions like star-rated hotels, hospitals, project sites, caterers, corporate canteens, schools and colleges, restaurants, food service establishments and coffee shops.
Today, production of high quality frozen foods that are both nutritious and fresh have made Vista a name to reckon within the industry.

Postproduction
This talks about distribution of finished goods to the customers. McD caters its final product through franchisee owned and company owned outlets. Independent Franchisees control almost 70% of McD’s total outlets. The customers who cannot reach McD, it reaches them through delivery system. It has one the best delivery system in the selective outlets. McD has approx. 200 stores in India.

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