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Supply Chain Management of Dominos

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Supply Chain Management of Dominos
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Supply Chain Management of Dominos - December 29th, 2010

Supply Chain Management of Dominos : Domino's Pizza, Inc. (NYSE: DPZ) is an international pizza delivery corporation headquartered in Ann Arbor, Michigan, United States. Founded in 1960, Domino's is the second-largest pizza chain in the United States.[1] Domino's currently has nearly 9,000 corporate and franchised stores[2] in 60 international markets[3] and all 50 U.S. states. Domino's Pizza was sold to Bain Capital in 1998 and went public in 2004. Domino's menu features pizza, pasta, oven-baked sandwiches, wings, boneless chicken, salads, breadsticks, cheesesticks, and a variety of dessert items.

Management positions at Domino's Pizza distribution centers offer you the opportunity to join a world-class company with:

* A competitive salary.
* An excellent benefits package.
* Opportunity for career growth.

Our team leaders are involved in all facets of our business. The work is a combination of administrative and operational responsibilities performed throughout the distribution center. The best candidates are strong yet thoughtful leaders who have the ability to respect their team members and mentor them onto greater career development. If you care about the people who work for you and have the desire to encourage and assist in their career growth, you're the type of leader we look for.

What Types of Management Positions Are Available?
Our General Manager Development Program is an excellent start to acquiring skills and learning the fundamentals of business operations. In addition to several requirements, it is necessary to work successfully in a team leader position (minimum of six months) to apply for the program. The program is customized for each individual and focuses on the following areas.

Food Production
Preparing and mixing fresh pizza dough is the responsibility of a production team member. The production team is the secret behind the great-tasting Domino’s Pizza consumers turn to when they’re hungry. If you have the desire to create a top-quality food product every day, then our production department is for you.

Commercial Delivery and Service Drivers
We look for team members with a commitment to safety and excellent customer service to be part of our Delivery & Service team. Delivery & Service drivers will drive a truck over an established route to deliver products to Domino’s Pizza stores. When you take the wheel for Domino’s Pizza Distribution, you are the face of our company to our customers. You’re interaction with the stores is crucial to our success. Many drivers build lasting relationships with customers in the fun and supportive family environment of Domino’s Pizza.

Our warehouse team members ensure that our customers receive each and every product they order, every time they order it. As a warehouse team member, your main responsibility will be to load, unload and move materials within or near the distribution center. You’re the one who makes it happen for us every day and you are an important piece of who we are.

n early 2000, Pawan Bhatia (Bhatia), the CEO of Domino's Pizza India (Domino's) was a man in a hurry. Ever since Bhatia took over as the CEO of Domino's in November 1999, he had been frantically reworking the pizza chain's India strategy. Bhatia was planning to open 150 new outlets by the end of 2002 covering 23 cities,1 including Bhubaneshwar (Orissa) and Jamshedpur (Bihar).

In late 1999, Indocean Chase, the private equity fund bought a 25% stake in Domino's operations in India from the Delhi-based industrial family, the Bhartias, who held Domino's franchise in India.

Domino's told investment bankers at the fund that it planned to go in for an initial public offering (IPO) in the next two years. Indocean Chase advised Domino's to go beyond its 16 outlets in Delhi to exploit the potential in the pizza delivery business. Unless a well-thought-out expansion plan was put into place, the IPO was unlikely to find too many takers.

As part of its expansion plans Domino's revamped its entire supply chain operations, from sourcing raw materials to shipping them for processing at a central location to delivering it to the customer's. Initially, Domino's had a simple model.

It had three self-contained commissaries in New Delhi, Mumbai and Bangalore which bought their own wheat, tomatoes and other ingredients, processed them, then delivered them in refrigerated trucks to each outlet. However, volumes were expected to increase when Domino's planned to open new outlets. Therefore, the existing model had to be revamped.

Bhatia said, "It's crucial for us to build a low-cost supply chain operation which takes costs out of the system and in turn gives us greater pricing flexibility in the marketplace." Analysts felt that Domino's had to rethink its supply chain operation because it was the biggest area of costs. Since 75% of Domino's customers ordered either from office or home, it did not have to lease large plots of land in prime locations to attract traffic. Instead, it needed an efficiently managed call centre to bring better returns

In the late 1950s, Dominick De Varti (Varti) owned a small pizza store named DomiNick's Pizza on the Eastern Michigan University campus in Ypsilanti, Michigan. In 1960, two brothers who were students of the University of Michigan – Thomas S. Monaghan (Thomas) and James S. Monaghan (James) – bought the store for US$900. In 1961, James sold his share of business to Thomas.

The pizza business did well and by 1965, Thomas was able to open two more stores in the town – Pizza King and Pizza from the Prop. Within a year, Varti opened a pizza store in a neighborhood town with the same name, DomiNick's Pizza.

Thomas decided to change the name of his first store, DomiNick's Pizza, and one of his employees suggested the name Domino's Pizza (Domino's). The advantage of this name Thomas felt was that it would be listed after DomiNick in the directory.

Domino's philosophy rested on two principles – limited menu and delivering hot and fresh pizzas within half-an-hour. In 1967, it opened the first franchise store in Ypsilanti, and in 1968, a franchise store in Burlington, Vermont. However, the company ran into problems when its headquarters (the first store) and commissary were destroyed by fire. In the early 1970s, the company faced problems again when it was sued by Amstar, the parent company of Domino Sugar for trademark infringement. Thomas started looking for a new name and came up with Red Domino's and Pizza's Dispatch. However, there wasn't any need for it because Domino's won the lawsuit in 1980.

In 1982, Domino's Pizza established Domino's Pizza International (DPI) that was made responsible for opening Domino's stores internationally. The first store was opened in Winnipeg, Canada. Within a year, DPI spread to more than 50 countries and in 1983, it inaugurated its 1000th store (Refer Exhibit II for worldwide revenues). Around the same time, new pizza chains like Pizza Hut and Little Caesar established themselves in the US. Domino's Pizza faced intense competition because it had not changed its menu of traditional hand-tossed pizza. The other pizza chains offered low-priced breadsticks, salads and other fast food apart from pizzas..
Analysts felt that Domino's took a cue from McDonald's supply chain model (Refer Box and Exhibit III for McDonald's model). However, they opined that the level of complexity in McDonald's system in India was not as high as that of Domino's. Commented Bhatia, "McDonald's operations are not as spread out as ours. They are in four cities while we are in 16. Centralizing wouldn't work on such a geographical scale."

Thus in early 2000, Domino's came out with its own logistics model. It began at the point Domino's purchased wheat for making the pizza dough. Domino's first decided the procurement strategy for its key raw materials: wheat, baby corn, tomatoes and spices.

For instance, wheat was cheapest in Jalandhar's (Punjab) wholesale markets. Domino's refrigerated trucks got the wheat back to the commissary in Delhi. Commissary processed the wheat and prepared the pizza dough. The pizza dough and other items prepared in commissaries were then sent to the retail outlets again in refrigerated trucks.

The temperature inside the truck was fixed based on the distance between the retail outlets and the commissaries. This was to set the dough at a particular level when it reached the outlets. The retail outlets had to use up the processed dough within three days of delivery. If they failed to do so for some reason the entire quantity was discarded.

To get to Jalandhar, the trucks had to pass Chandigarh. Chandigarh with a cosmopolitan population, was a potential market for Domino's products. Therefore, Domino's opened an outlet there. The cost of entry was low because there was no additional costs incurred on transportation of products...

Last edited by bhautik.kawa; July 19th, 2016 at 04:51 PM..
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Re: Supply Chain Management of Dominos - June 26th, 2015

Advantage of Supply chain management

1) Availability of Product

2) Reduce costs

3) Low price

4) Efficient and high quality
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