“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,"
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. Coughlin's task was to make sure that McDonald's had the proper amount of supplies and materials at each restaurant. The challenge was the physical movement of material and inventory control in a country with bad roads and basic infrastructure bottlenecks.
To meet McDonald's high standards, Coughlin ensured that quality, temperature and packaging requirements were met. At the same time, unused capacity in the vehicles was used to transport goods from other vendors. This helped Coughlin deliver the lowest cost with the highest quality. RFPL also handled in-city distribution to restaurants. "We make a projection of demand from each of the restaurants based on historical data and ask the suppliers to meet the demand. This information is also sent to the logistics company. The suppliers, in turn, give us feedback on their ability to meet the demand,"