dominos vs macdonald

7/29/2019 dominos vs macdonald

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FAST

FOODINDUSTRYBy:-

Abhinav khanduja 208

Aayush sharma 209

Nalini katiyar 215

Mohit rathi 220

Kriti singh 236

Keshav kishore 261


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OBJECTIVE

To study the operations and supply chainmanagement of Mc Donalds and Dominos.


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Flow of the presentation

Introduction.

Mc Donald industry.

Logistics of Mc donalds.

Dominos. Logistics of Dominos.

Recommadations.

Conclusions.

Refrences.


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FAST FOOD INDUSTRY


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MAJOR PLAYERS


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McDonalds History


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McDonalds System theWorlds Best QSR experience


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PRODUCTS


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c


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Cheese Dynamix Dairy Industries Ltd., Pune

Dehydrated onions Jain Foods, Jalgaon

Iceberg lettuce Trikaya Agriculture, Pune

Chicken patty Vista Foods, Taloja

Veg. Patty, Veg. Nuggets, Pies Kitran Foods, Taloja

Chicken (dressed) Riverdale, Talegaon

Buns Cremica Industries, Phillaur

Eggless mayonnaise Quaker Cremica Pvt. Ltd., Phillaur

Sesame seeds Ghaziabad

Fish fillet patties Amalgam Foods Ltd., Kochi.

Vegetable for the pattiesFinns Frozen Foods, Nasik and JainFoods, Jalgaon

Mutton and Mutton Patties Al Kabeer, Hyderabad


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SUPPLY CHAIN INTEGRATION


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Mc Donalds India sources its ingredients from localsuppliers who are an integral part of the cold chain.

Refrigerated trucks with multi-temperature facility divided into 3 zones-freezer,chiller, and ambient to ferry product demanding varying temperaturesfrom supplier location to the distribution centre.

Reference: National Retail Federat-Case Study

Contd


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Distribution centre is also divided into multi-temperaturezones , as are the trucks for storing products. With freezerat 0 degree F to 33 degree F , chiller at 33 degree F to 40degree F, and room temperature.


Contd


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Restaurants have in built cold storage units subdividedinto same aforesaid zonesfreezer, chiller ,andambient.



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Consumer/outlets

38 suppliersacrossthe country

ProcurementlogisticFood /nonfood:

Frozen , chilled &

any dry goods

Warehousing & packaging

Distribution logistics

Food /nonfood:Frozen , chilledany dry goods

C Donalds Supply Chain (160 restaurants across

the country)

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Supply of ingredients:

Sesame seedsGhaziabad, UP

Buns

Shah & sons,Khopoli ,MH &Cremica Industries,Noida

Iceberg lettuceTrikaya Agriculture , Talegaon MHMeena Agritech ,DelhiFerrocoa Farm, Dehradoon

Special vegetarian sauce(Eggless)Quaker Cremica,Phillaur,Punjab

Batter & BreadingCremica Industries, Ludhiana ,Punjab

Vegetable Patty(Made from fresh Peas,Carrots,Green beans,Potatoes and Rice)Kiltran foods, Taloja MH

Reference: mcdonaldsindia.co


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BACKGROUND NOTE

In the late 1950s, Dominick De Varti (Varti)owned a small pizza store namedDomiNicks Pizza on the Eastern MichiganUniversity campus in Ypsilanti, Michigan.

In 1960, two brothers who were students ofthe University of Michigan Thomas S.Monaghan (Thomas) and James S.Monaghan bought that store.

Thomas decided to change the name of hisfirst store, DomiNicks Pizza, and one of hisemployees suggested the name DominosPizza (Dominos).


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DOMINO S INDIA

In early 2000, Pawan Bhatia, the former CEO of

Dominos Pizza India (Dominos) was a man ina hurry.

He had frantically reworked the pizza chain's

India strategy. Bhatia planned to open 150 newoutlets by the end of 2002 covering 23cities(Tier-I),including Bhubaneshwar (Orissa)and Jamshedpur (Bihar).

As part of its expansion plans Domino'srevamped its entire supply chain operations,from sourcing raw materials to shipping them forprocessing at a central location to delivering it to

the customer's.


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CORPORATE STRATEGY


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PRODUCTS


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OPERATIONS


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1. Domestic Stores


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3. International


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DOMINOS SUPPLY CHAIN


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2. Distribution


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3. Retail Outlets


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SUPPLY CHAIN DIAGRAM

WHEAT

REFRIGERATEDTRUCK

WAREHOUSE

DOUGH

RETAILOUTLET


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Outsourcing the Ingredients

Wheat Jalandhar (Punjab)

Cheese Karnal, Haryana

Tomatoes Bhubaneshwar, Orissa

Spice South India

Baby Corn Nepal

Exotic Vegetables Sri Lanka

Pepperoni Australia

Jalapeno Spain


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ISSUES

Dominos were in 16 cities so the level of

complexity is bit high for them.They cant go forcentralized system.

The retail outlets had to use up the processeddough within three days of delivery.

Need of call center.


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THE PIZZA HOTLINE

In April 2000, Dominos introduced acommon toll-free number in all the 16cities it operated, which had beenbranded as the Hunger Helpline

It worked seemed simple: each time acustomer called, his location was

identified and the order was transferredto the nearest Dominos outlet, which

then took on the task of delivering theorder 30 minutes.


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LAYOUT PLAN


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Pizza Baseprepared

Cheeseblend

applied

DoughTable

SeasoningTopping

Makeline

470Fahrenheit

Capacity of5 pizzas at

a time

Oven

1-2 minutes 1 minute 5-6minutes

Turnout is 1 pizza per minute

Meets the current demand requirements

Bottleneck is oven

PRODUCTION


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4 commissaries(Regional Centralized

Facilities) acrossIndia:

Raw materials likewheat brought in fromJalandhar and sent to

commissaries viarefrigerated trucks

Tomato, Capsicumand Onion purchased

locally

Delhi

Bangalore(caters to 90outlets across South Zone)

Kolkata

Mumbai

RAW MATERIALS ANDPROCUREMENTS


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Dough balls processedfrom wheat are sent toretail outlets inrefrigerated trucks

HUB AND SPOKEMODEL withcommissaries as hubs

Frozen food sent at -18 deg Celsius

DISTRIBUTION


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WHEAT(JALANDHAR)

DOUGHCOMMISSARY REFRIGERATEDTRUCK

RETAIL OUTLET

SUPPLIERS(Toppings &Seasonings)

LOGISTICS


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ITEM SHELF LIFE

Dough ball 5 days

Mexican Wrap Base 3-4 days

Cheese Dip 4-5 days

Seasoning and Toppings 4-5 days

Onion, Tomato, Capsicum 5 days

Cheese Blend 4-5 days

INVENTORY MANAGEMENT


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Mini Cold Storage at Outlet (Walk In)

Maintain approximately 4 days of inventory

Trucks from commissaries replenish inventoryevery 4 days

Inventory levels are monitored centrally via POSdata using Intura Vision installed in every outlet

Two POS per outlet (Telephonic sales and InStore Sales)

CONTD


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Hub andSpoke

Distribution

Hubs at 4 commissaries

DelayedDifferentiatio

n

Tomato, Capsicum, Onion etc.purchased locally

IST (InterStore

Transfer)

To cater to sudden variability'sin demand

SalesIncentives

To try to get volumes up duringlean times

OPERATIONAL STRATEGY


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SCIP (Store Continuous ImprovementPlan)

Sales Training

FTD (Friday Training Day)

HTR (Handle The Rush)

Rubber Gloves.

QUALITY INITIATIVES


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Makingimprovementthrough team

work and

employeeempowerment

Continuousimprovement

at its base

Belief that allmeaningfulideas aregood and

must beimplemented

Everyone isexpected to

givesuggestions

on regularbasis

Award System(Tokens, Scores)

CUSTOMER SERVICE


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RECOMMENDATIONSISSUES

COMPETITION


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ISSUES RECOMMENDATIONS

Local manufactureof dough balls toreduce wastage

Usage of deep freezer as in other stores

Appointing amarketing

professional atlocal level

Authority to introduce offers for short period For a better market study and introduce new

products suited to local preferences

Inter StoreTransfer

Dominos Should have a big store inBangalore.

COMPETITION


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ISSUES

Pizza Hut is the

competitor to theDominos Pizza

RECOMMENDATIONS

COMPETITION


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REFRENCES

www.mcdonadlsindia.in

www.dominos.co.in

www.supplychain.org

www.wikipedia.org

www.inboundlogistics.com

www.books.google.co.in

www.advancesupplychain.com

www.distributionchain.com
http://www.mcdonadlsindia.in/http://www.dominos.co.in/http://www.supplychain.org/http://www.wikipedia.org/http://www.inboundlogistics.com/http://www.books.google.co.in/http://www.advancesupplychain.com/http://www.distributionchain.com/http://www.distributionchain.com/http://www.advancesupplychain.com/http://www.books.google.co.in/http://www.inboundlogistics.com/http://www.wikipedia.org/http://www.supplychain.org/http://www.dominos.co.in/http://www.mcdonadlsindia.in/


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dominos vs macdonald

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