PROJECT:- SUPPLY

CHAIN MANAGEMENT
AT McCain FOOD

NORTHERN COLLEGE AT PURES

SUBMITTED BY: SAHIL KARIYA, ABHISHEK

BHARDWAJ

STUDENT ID:- 202205704, 202106987

COURSE NAME:- SUPPLY CHAIN MANAGEMENT

BU1303

SUBMITTED TO: JAISON METHEW

DATE: O1 AUG 2023

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TOPICS ACCOMPILSHID BY

CANDIDATE : ABHISHEK BHARDWAJ CANDIDATE : SAHIL KARIYA

STUDENT ID- :- 202106987 STUDENT ID- :- 202205704

•Sourcing of materials •Supply chain Goals

•Process Management •Customer Fulfilment
•Quality Control •Efficiency
•Global Competition •Effectiveness
•Supply Chain Best Practices •Responsive
•Supply Chain Challenges •Resilience
•Agile/Adaptability

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Supply Chain Management
Project On McCain foods.
Our Global Presence.
McCain Foods is a global business with presence across
Canada, US, Brazil, Argentina, Colombia, UK, Ireland,
France, Belgium, Netherlands, Poland, Australia, New
Zealand, South Africa, India, Japan, Malaysia,
China…and more.
We have a significant food production network with a
total of 51 production facilities globally, 95% located in
rural communities.

As well as our founding location of Florence Ville

Canada, our significant network of global and local
market teams around the world are supported by our
About McCain
corporate head office based in the heart of Toronto
Canada. As a privately owned family company with sales in over 160
countries, our values are at the heart of everything we do.
Our product quality, people and customer dedication
have helped us achieve global annual revenues in excess of
$11billion Canadian dollars.

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Supply chain Goals.
SMART & SUSTAINABLE FARMING
• Implementing regenerative agriculture practices on 100% of our potato acreage by 2030
• Operating three Farms of the Future in different growing regions around the world by 2025

RESOURCEEFFICIENT OPERATIONS
• Move out of coal and 100% renewable electricity by 2030
• 30% reduction in CO2 emissions intensity (Scope 3) by 2030
• 15% improvement in water-use efficiency in seven priority plants by 2025
• Making 100% of our packaging recyclable, reusable or compostable by 2025
• 50% reduction in food waste intensity across McCain operations by 2030

GOOD FOOD
• Using simple ingredients that customers recognize and expect
• Removing palm oil from our frying operations for McCain-branded products by 2025
• 15% reduction in sodium in our potato and appetizer products by 2025
• Providing clear and transparent nutritional information.
• 100% GFSI certification at all McCain-owned facilities and tier 1 ingredient suppliers
• 100% use of cage-free eggs by 2025

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 Understanding Customer
Expectations
Costumer Fulfillment • McCains food is operating their business
in 160 country. Inclusion of new products
• In Canada, McCain lunched 9-Minute
Breakfast Patties and 9-Minute Onion and in the portfolio according to rational
Potato Patties, which are trans fat-free and demand.
free from artificial colors and flavors.
• Inclusion of chinses breakfast Item
• In the US, McCain lunched Quick Crinkle,
Straight-Cut and Waffle Fries, which are made exclusively in
with no artificial flavors, are low in saturated • China, ready to eat food item, appetizer
fat and trans fat-free.
and dessert according to voice of the
• In Europe, McCain lunched Crunchy Petals,
our food service favorite, into retail. This customer.
product achieves Nutriscore A and contains • Partnership with strong root plant based
3g of fiber per serving.
• In South Africa, McCain lunched our Stir Fry
frozen food manufacturing organization
and Mixed Vegetables line by launching four to fulfilment of demand of vegan
new products. • In China, we launched customer.
McCain Oat Hash Browns, which contain over
3g of fiber per 100g.

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Efficiency
Supply chain efficiency focuses on the internal processes within
the supply chain. It relates to using available resources (eg
financial, human, physical etc) in the best possible way to meet
the customer's demand at the lowest cost.
11% reduction in water-use intensity [m3/tonne of potato farming]
in water-stressed regions since 2020.
In 2022, around the world made significant progress with
renewable electricity, which accounted for 18.5% of our total
electricity usage, up from 14% .Also made headway in negotiating
various power purchase agreements.
In 2022, at seven priority sites water consumption per tonne of
product has reduced by 17%.
McCain Achieved a 12% reduction in food loss and waste intensity
compared to 2020, and we’re working on plans to accelerate
further with site-based targets for 2023.
1.3% waste to landfill, down from 2% in 2021.
In 2021, McCain set a commitment to implement regenerative
agriculture practices across 100% of our potato acreage by 2030

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 Supply Chain Effectiveness is focused on external criteria, with a special emphasis on the
organization’s success at meeting the expectations and demands of investors, customers,
and suppliers. Consideration for these external standards (which include, for example,
customer satisfaction and strategic spending based on market conditions) are a large part
of the reason effective supply chains are sometimes referred to as responsive supply chains.
Effectiveness In 2017 McCain embarked on a project to streamline planning processes by implementing
SAP Integrated Business Planning modules for Demand, Inventory, Response and Supply
Planning, and to date we have made considerable progress.
Coloration & Partnership towards
Effectiveness.
Smart & Sustainable Farming. Inventory Optimization went live in May 2018 which enables McCain to determine optimal
safety stock targets based on variability and perform scenario planning.
•SAI Platform
•Global Good Agriculture
Practice (GAP)
Network Supply Planning (Monthly) also went live in May 2018 which involved the
Good Food (Strengthen nutrition- conversion of supply planning process from APO SNP to IBP Supply Planning. This has
based research) . “enabled us to better perform scenario planning and automate the reporting the result.
•Consumer Goods Forum Workforce
Nutrition Alliance
Demand Planning went live in July 2018 which enabled McCain to convert the processes
•Institute of Food Technologists from APO DP to “integrate demand and sales processes and reporting”
(IFT)
•Alliance for Potato Research
and Education (APRE)

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 A responsive supply chain is a type of supply chain that can
Responsiveness quickly adapt to changes in demand or other variables.
This means that the supply chain can respond quickly to
changes in customer demand, market conditions, or other
factors that may impact the supply chain.
• Strategic Partnership with strong root plant based frozen food
manufacturing organization to fulfilment of demand of vegan customer.
• Initiative to respond empowered customer who are conscious about
health and nutritious food .
• front-of-pack (FOP) labelling that is based on scientific evidence, aligned
with public health goals and supported by consumer education.
• Remove palm oil from our frying operations. 100% use of cage-free eggs .
• 15% reduction in sodium in our potato and appetizer products.
• Online Platform mccainusafoodservice.com to foster B2B channel and
admire ideas or need of customer.

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 Supply chain resilience is "the adaptive capability of the supply chain to
prepare for unexpected events, respond to disruptions, and recover from
them by maintaining continuity of operations at the desired level of
Resilience connectedness and control over structure and function
•McCain food loose 30% it’s potato crop in their home-grown farms Manitoba and new Brunswick due
to climate change and weather conditions
•Overall McCain food losses 20 % of It’s cultivation due to climate change and soil infertility.
•Due to Ukraine Russia conflict fertilizer cost s substantially increased by 30 %. In addition, fuel coat
has also increased.

Resilient Initiative to respond the situation.

•McCain food is developing Farm for future at their 5 key location for optimized and advance farming.
•Reducing agro-chemical impacts and optimising water use. By precisely managing crop protection
products, fertiliser and water applications.
•Integrating organic and livestock elements. This incorporates green manure, composter livestock
elements to increase organic matter and soil fertility.
•Introduction of regenerative farming across the Africa, Europe and Britain. Collaborated with the
Earthworm Foundation in Europe, developed a new soil health education programme in the Soil
Health Institute of the US and Canada, and worked closely with local expert.

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 Supply chain adaptability can be defined as the ability to
adjust a supply chain's design to meet structural shifts,
disruptions and changing customer behaviour and
Adaptability modify each supply network to reflect those changes.

Adaptability in McCain food supply Chain

• Due to Ukraine-russia conflict Sunflower oil sourcing disrupted as a

alternative from 1st July 2022 McCain facilities adopted blend of
rapeseed and sunflower oil.
• Due to climate change cultivation is at risk to enhance and optimise
farming McCain adopted Regenerative farming.
• McCain introduced Front of pack labelling also focuses on 100 %
recyclable packaging due to growing health issues of micro plastic in
human bod.

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 • McCain food is manufacturer of Potato based Items as well as
Ready eat items and desserts.
• McCain procures Potato from nearby are of its 51 facilities. In
McCain own its Potato farms in Manitoba and new
Sourcing of Material Brunswick.
• Second largest supplier of potato is Britain. McCain Has close
tie ups with British potato growers' union.
• McCain used to procure it’s most of the sunflower oil from
Ukraine and Russia. While In north America McCain food
supply Canola oil from local sources.
• Logistics and distribution is outsourced by 3PL strategy
• Burley, Idaho, NewCold has built its second North
American freezer DC to manage the distribution . of frozen
foods for McCain Foods
• Kloosterboer runs the warehouse exclusively for McCain
and handles between 5,700 and up to 7,000 pallets daily
across the Europe.

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 •Supply chain quality management is the processes through which
companies assess, monitor, and proactively manage the quality of
products and processes in the supply chain
Quality Control Quality control at McCain
• 100% GFSI certification maintained at all McCain-owned facilities and 95%
achieved for tier 1 ingredient suppliers.
• Followed potatoes from their roll off the back of a farm truck through sorters,
samplers, peelers, sorters, cutters, sorters, blanchers, fryers, shakers, sorters,
coolers, freezers and samplers to their final pass through a metal detector
(McCain’s single CCP) as packaged frozen French fries..
• Off-the-truck sampling – The potato is carried into the Easton plant on a
conveyor belt, and within a few seconds, it hits its first quality checkpoint –
two random samplings per truckload conducted by full-time, on-site USDA
inspector
• Off-the-line sampling – On the other side of the wall from the USDA sampling
lab is a McCain sampling lab which tests samples from the line, which may
have come directly from a truck or from a storage unit on-site.
• Automatic defect removal:- Potato strips passes through computerized
robotic Eye which removes short or long or defective fires from line.
• The plant had HACCP in place and was familiar with the AIB food safety audit.

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 Raw material sourcing:- McCain closely work with their potato grower for better crop yield and
reliable supply. For inventory management and network supply chain SAP ERP system is in place.
Process Management
Quality control:- At McCain facilities 100 % GFSI standards are being followed also 95% of Tier 1
supplier follow GFSI standard ADI audit, incoming and dispatch are thoroughly inspected . HACCP
food safety policy is in place.

Manufacturing:- McCain’s OEE solution is linked to every production line in the world (all 55
production locations) and is a staple within their global innovations process for all supply chain
initiatives. Using MicroStrategy on McCain’s Teradata Integrated Data Warehouse. These include:
Global Safety Reporting Dashboards; a number of Sales Dashboards; Marketing Dashboards
(Banner Comparison, Promotional Effectiveness, Price Gap Comparison etc.)

Logistics and distribution:- McCain outsourced it’s inbound- outbound logistics and distribution
using 3PL concept.

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Global supply chain Ukraine Russia conflict:- Shortage of potassium surged the price of
challenge for McCain fertilizer by 80%. Shortage of sunflower oil and wheat.

Food
Climate change:- Due to climate change crop yield is decreasing which
creates shortage of raw material.

Rising weather temperature:- Cold supply chain is affected by rising

temperatures distribution and transportation cost is increasing due to
increase in air conditioning load.

Aging of population:- Due to significant rise in aging population and

lower population growth in developing countries labour shortage is
increasing.

Covid-19:- Pandemic like situation disrupted Whole supply chain in

Frozen food industry.

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 Building and maintaining relationships with other suppliers :-
Supply Chain Best McCain extending help to their potato growers across the world
with technological and financial support for regenerative farming.
Practices
Buying supplies in bulk:- McCain food procuring their main raw
material from 3500 potato growers and overall, from 25000 suppliers
which enable them to ensure steady supply at low cost.

Planning for future demand :- McCain facing Potato cultivation

losses due to climate change with respect to future demand McCain
introducing “Farm for the future”, “ Zero west to landfill”, “ Use of
Rapeseed and sunflower blend oil”,

Planning for future demand :- Implementation of SAP at McCain

food in 2017 for improved safety stock, inventory reduction and
Demand Planning.

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GlobalCompetitor

R. Simplot Company was Kraft Heinz Company was

Lamb Weston Holdings, established in 1923 and established in 2015 with the
Inc. was established in 1950 headquartered in Boise, merger between Kraft Foods &
and headquartered in Idaho, United States. Heinz and is headquartered in
Eagle, Idaho, United Specialties in fertilizer Chicago, Illinois, United States.
States. Specialties in frozen manufacturing, phosphate Specialties meals, refreshment
potato products such as mining, farming, cattle beverages, nutrition products,
frozen French fries, waffle production, ranching, food coffee. Ore-Ida is their popular
fries, and Appetizers, etc. processing, other food brand of frozen potato
Lamb Weston Holdings, brands, etc. J. R. Simplot products. Kraft Heinz Company
Inc. has more than 7,200 Company has more than has more than 38,000
employees and a revenue 11,000 employees and a employees and a revenue of
of $3.6 Billion. revenue of $6 Billion. $26.04 Billion.

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