Download - SCM Domino's Pizza Final B7
ANALYSING THE SUPPLY CHAIN OF DOMINO’S PIZZA, KOZHIKODE
PRESENTED BY GROUP 7: 065|ABHINAV GUPTA|108| SHASHI BHUSHAN ROUT |123|VARUN YADAV 175|SHIVA KUMAR N|260|ARUN ARYA
About Domino’s Pizza
Vision, Mission & Values
Product Offerings
Supply Chain
SANKALP: Customer Service
Raw Materials Procurement
Raw Materials Distribution
Logistics
Inventory Management
Presentation Agenda
Quality Initiatives
Pizza Production Process
Issues
Recommendations
About Domino’s Pizza Vision, Mission & Values Product Offerings
Production Process DistributionRaw Materials Procurement
• Founded in 1960 by Tom Monaghan• Second largest Pizza chain in US• 9000 corporate and franchised stores across
60 nations• Domino’s outlet in India opened in 1996• Jubilant Food Works Limited, a Jubilant
Bhartia Group company holds the Master Franchise rights for India, Nepal, Sri Lanka and Bangladesh
• Revenue– 70 % from home deliveries– 30 % from OTC sales
About Domino’s Pizza Vision, Mission & Values Product Offerings
Production Process DistributionRaw Materials Procurement
VISION “Exceptional people on a mission to be the
best pizza delivery company in the world”
MISSION“Domino’s Pizza is the Pizza specialist who
consistently delights the customer with great taste and choices in pizza with friendly, courteous team members providing prompt, safe delivery service”
About Domino’s Pizza Vision, Mission & Values Product Offerings
Production Process DistributionRaw Materials Procurement
Pizzas
Pastas
Breadsticks
Cheese Dips
Beverages (tie-up with Coca Cola)
Choco Lava Cake
Chicken Wings
About Domino’s Pizza Vision, Mission & Values Product Offerings
Production Process DistributionRaw Materials Procurement
• Pizza Base prepared
• Cheese blend applied
Dough Table• Seasoning• Topping
Makeline• 470 Fahrenheit• Capacity of 5
pizzas at a timeOven
1-2 minutes 1 minute 5-6 minutes
Turnout is 1 pizza per minute
Meets the current demand requirements
Bottleneck is oven
About Domino’s Pizza Vision, Mission & Values Product Offerings
Production Process DistributionRaw Materials Procurement
4 commissaries (Regional Centralized Facilities)
across India:
Raw materials like wheat brought in from Jalandhar and sent to commissaries
via refrigerated trucks
Tomato, Capsicum and Onion purchased locally
• Delhi• Bangalore(caters to 90 outlets
across South Zone)• Kolkata• Mumbai
About Domino’s Pizza Vision, Mission & Values Product Offerings
Production Process DistributionRaw Materials Procurement
Dough balls processed from wheat are sent to retail outlets in refrigerated trucks
HUB AND SPOKE MODEL with commissaries as hubs
Frozen food sent at -18 deg Celsius
Logistics Inventory Management Inventory Management
Operational Strategy SANKALP: Customer ServiceQuality Initiatives
WHEAT (JALANDHAR)
DOUGH COMMISSARY REFRIGERATED TRUCK
RETAIL OUTLET
SUPPLIERS(Toppings & Seasonings)
Inventory Management
Operational Strategy SANKALP: Customer ServiceQuality Initiatives
Logistics Inventory Management
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
Operational Strategy SANKALP: Customer ServiceQuality Initiatives
Logistics Inventory ManagementInventory Management
Mini Cold Storage at Outlet (Walk In)
Maintain approximately 4 days of inventory
Trucks from commissaries replenish inventory every 4 days
Inventory levels are monitored centrally via POS data using Intura Vision installed in every outlet
Two POS per outlet
• Telephonic sales• In Store Sales
SANKALP: Customer ServiceQuality Initiatives
Logistics Inventory Management Inventory Management
Operational Strategy
Hub and
Spoke Distributio
n
•Hubs at 4 commissaries
Delayed
Differentiati
on
•Tomato, Capsicum, Onion etc. purchased locally
IST (Inter Store Transf
er)
•To cater to sudden variabilities in demand
Sales Incentive
s
•To try to get volumes up during lean times
SANKALP: Customer Service
Logistics Inventory Management Inventory Management
Quality InitiativesOperational Strategy
• SCIP (Store Continuous Improvement Plan)– Sales – Training– Store Operation Cost– Makeline Pizza
• FTD (Friday Training Day)• HTR (Handle The Rush)• PRP (Pre-Rush Preparation)• ONOM (Operations for Non - Operation
Managers)• ODC (Out Door Catering)
Logistics Inventory Management Inventory Management
Operational Strategy Quality Initiatives SANKALP: Customer Service
Making improvement through team
work and employee
empowerment
Continuous improvement
at its base
Belief that all meaningful
ideas are good and must be implemented
Everyone is expected to
give suggestions on regular basis
Award System(Tokens, Scores)
RECOMMENDATIONSISSUES
•If not proofed on these days, then it has to be disposed off
Proofing - Dough ball can ideally be used on 3-4th day for the pizza
to taste better
•Motivate staff to increase sales through incentives
•No authority to introduce offers at the local level for any particular day
Frequent strikes in Kerala
•Local preferences not considered
Standard Products of Domino’s
•In case of contingency, materials supplied from Cochin (5 hrs) and not Coimbatore (4 hrs)
Inter Store Transfer (IST)
ISSUES RECOMMENDATIONS
Local manufacture of dough balls to reduce wastag
e
•Usage of deep freezer as in other stores
Appointing a
marketing
professional at
local level
•Authority to introduce offers for short period
•For a better market study and introduce new products suited to local preferences
Inter Store
Transfer
•Can be supplied from Coimbatore since it is only during contingency