scm domino's pizza final b7

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Page 1: 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

Page 2: SCM Domino's Pizza Final B7

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

Page 3: SCM Domino's Pizza Final B7

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

Page 4: SCM Domino's Pizza Final B7

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”

Page 5: SCM Domino's Pizza Final B7

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

Page 6: SCM Domino's Pizza Final B7

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

Page 7: SCM Domino's Pizza Final B7

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

Page 8: SCM Domino's Pizza Final B7

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

Page 9: SCM Domino's Pizza Final B7

Logistics Inventory Management Inventory Management

Operational Strategy SANKALP: Customer ServiceQuality Initiatives

WHEAT (JALANDHAR)

DOUGH COMMISSARY REFRIGERATED TRUCK

RETAIL OUTLET

SUPPLIERS(Toppings & Seasonings)

Page 10: SCM Domino's Pizza Final B7

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

Page 11: SCM Domino's Pizza Final B7

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

Page 12: SCM Domino's Pizza Final B7

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

Page 13: SCM Domino's Pizza Final B7

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)

Page 14: SCM Domino's Pizza Final B7

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)

Page 15: SCM Domino's Pizza Final B7

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)

Page 16: SCM Domino's Pizza Final B7

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

Page 17: SCM Domino's Pizza Final B7