“There is no doubt that Covid-19 has left a lasting impact on our business, our supply chain and our supplier partners. We also see a new normal for our customers, in the way we deliver our restaurant experience, the best and safest way possible for them to enjoy our unique McDonald’s menu,” highlights Pankaj Bansal, Director, Supply Chain and Quality Systems, McDonald’s India (North and East).
What have been the implications on supply chain at McDonald’s?
The Covid-19 situation has presented unique challenges for the entire supply chain industry, as both supply and demand have been constrained. Our supply chain has been severely impacted as most of our restaurants remained shut or have been limited to Delivery service only. As a global industry player, we have strict standards for ensuring quality and food safety throughout our supply chain, but the current situation required introducing additional health and safety measures such as temperature monitoring, social distancing, frequent handwashing, enhanced sanitization protocols, etc. The situation has also triggered immediate requirement of PPE materials like masks, gloves, face shields and cleaning/ sanitization chemicals to ensure safety of our employees and customers.
With majority of our restaurants either closed or opened for deliveries only, there has been a severe impact on our business. With many of our ingredients having limited shelf-life, this sudden business disruption has also led to a significant risk of inventory shrinkage throughout the supply chain. Covid-19 can pose a great risk to the entire supply chain, so our contingency measures are reviewed and tested across our supply chain to ensure assured supplies to our restaurants.
How are you bracing for these changing times?
At McDonald’s India (North and East), our top-most priority has been the safety of our customers and employees. We have implemented number of additional safety measures such as temperature monitoring, frequent handwashing, stringent sickness reporting policy across our supply chain to ensure food safety. We have also put in place a graded response action plan across the supply chain to tackle any positive coronavirus case.
On the supply front, we have focused on ensuring a resilient supply chain, minimizing the cost impact and risk mitigation by working closely with all our suppliers as well as our distribution center. With this collaborative approach, we have been able to activate the supplies of all PPE and cleaning/sanitization chemicals quickly through our globally approved suppliers. To ensure a sustained supply chain, we have been reviewing our contingency plan regularly with our suppliers including our distribution center to be prepared in case of any disruption.
How do you see the situation changing in the future?
We expect our business to reopen gradually and in a phased manner, guided by government guidelines and regulations. Since our supply chain has been in a ready state, we do not see any challenge in scaling up our operations as and when the reopening of the economy picks up pace.
As the leading QSR company in India and globally, how are you prepping up to serve the customers again? Will there be any supply chain implications in the future?
To ensure the safety of our people and our customers, we have taken several steps to ensure good hygiene and sanitation standards in our restaurants; along with stringent social/physical distancing measures. We are providing easy and ready access to hand sanitizers (with 70% alcohol) to all our visitors including delivery riders and service providers. The cleaning and sanitation SOPs have been stepped up to ensure proper and regular sanitation of frequently touched points/surfaces. There is no doubt that Covid-19 has left a lasting impact on our business, our supply chain, and our supplier partners. We also see a new normal for our customers, in the way we deliver our restaurant experience, the best and safest way possible for them to enjoy our unique McDonald’s menu.