McDonald's India: Optimizing the French Fries Supply Chain Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

McDonald's India: Optimizing the French Fries Supply Chain Case Solution

Prior to opening its very first shop in India in 1996, McDonald's invested 6 years developing its supply chain. Throughout that time, the business worked to effectively source as numerous components as possible from India. Nevertheless, French fries ("MacFries") were an especially difficult item to source in your area-- and importing fries was unfavorable for both expense and accessibility factors. Expanding potatoes appropriate for usage as fries was challenging in India. By 2007, 11 years after starting its very first dining establishment, the MacFry was lastly being produced in India. McDonald's primary MacFry provider was the Canadian business McCain, which invested several years dealing with potato agronomy and with farmers to develop quantity in India. From 2007 to 2011, regional MacFry creation improved from none to 75 percent of sales.

Regardless of the strides made, in 2011 Abhijit Upadhye, McDonald's then senior director of Supply Chain India was still a concerned guy. Double-digit food inflation in India had actually been putting expense pressure on the business. McDonald's had bold development prepare for the years to coming. The business had 240 dining establishments, and prepared to much more than double by 2014. The MacFry was the single biggest purchase product, so coming with a 100 percent regional supply was vital to preventing high import responsibilities. The concern that bothered him was: "Will I ever have the ability to get rid of bring fries from my supply chain?" This case explains McDonald's India and McCain India's efforts to enhance the MacFry supply chain by raising regional source in a fast-growing developing market place utilizing agronomy, farmer relationship advancement and worth chain development.

This is just an excerpt. This case is about Business