Introduction to Logistics and Supply Chain Management

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Though the initial attempt to localize french fries had failed, McDonald’s decided to fry again in 1998 with McCain. In India, the raw potatoes were not allowed to be imported. So, McCain had to bring in only the suitable potato genetic resources. The local supply strategy was an exercise in risk management. If Indian licensing requirements changed in the future, McDonald’s may not have a license to import fries. Given import duties levied on foreign agricultural products in many countries, having a local strategy was often an advantage.

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