Thanks to visit codestin.com
Credit goes to www.scribd.com

Scribd
Upload
89 views2 pages

Domino's Supply Chain Optimization

Domino's revamped its supply chain operations to support opening new outlets and increasing operations volume. It procured key ingredients like wheat, tomatoes, spices, and baby corn from different low-cost regions in India and abroad. Domino's optimized transportation by opening outlets along routes between its commissary in Delhi and procurement sources. It identified specialty crops in each region and had local commissaries process them. Domino's also developed cold chain logistics using refrigerated trucks to transport ingredients and products cost effectively.

Uploaded by

Rahul Deotale
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
89 views2 pages

Domino's Supply Chain Optimization

Domino's revamped its supply chain operations to support opening new outlets and increasing operations volume. It procured key ingredients like wheat, tomatoes, spices, and baby corn from different low-cost regions in India and abroad. Domino's optimized transportation by opening outlets along routes between its commissary in Delhi and procurement sources. It identified specialty crops in each region and had local commissaries process them. Domino's also developed cold chain logistics using refrigerated trucks to transport ingredients and products cost effectively.

Uploaded by

Rahul Deotale
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Abstract

Supply chain operation , which have been designed to ensure fast delivery at the lowest cost to the customers without compromising on the quality. the low cost achieved can then be passed on to the customer in the form of lower prices and hence significant competitive advantage can be derived various suppliers for different ingredients to be used for food items being sold at the respective McDonalds and dominos center A consistency in quality is achieved at all the centers through strategic and costeffective procurement from different parts of India while keeping the costs low. Keeping the input costs under a tight leash also affords an opportunity to keep the prices attractive enough to make the customer keep coming back for more The supply chain help a company identify superior suppliers and distributer which ultimately brings down the company's cost. Question 3: Domino's felt the need to revamp its supply chain operations primarily because it wanted to open a large number of new outlets to increase the volume of its operations. The main reasons are as follows: 1. Cost effective procurement Domino's first decided the procurement for its key raw materials: wheat, baby corn, tomatoes and spices. wheat was procured from Jalandhar (Punjab) wholesale markets as it offered an excellent quality-value proposition. Domino's looked at the best product at the lowest cost. Thus, tomatoes would come from Bhubaneshwar, spices from the South, baby corn from Nepal (where it is 40 per cent cheaper than in India) and vegetables from Sri-Lanka Earlier Domino's used to sell its products only from its in house outlets but in the new model it started supplying the products to outlets to cooperate offices, railway stations, cinema halls etc. This move increased the company's reach and improved its profits. 2. Converting logistics problems into business opportunities: To get to Jalaiidhar, the trucks had to pass Chandigarh Domino's opened a outlet there as the cost of entry was low because there was no additional cost incurred on transportation of products.

3. Excellent fleet management for optimum resource utilization: Domino's opened an outlet in every potential market, which fell in route between the commissary in Delhi and Jalandhar, its prime-sourcing base The logistics model adopted by Domino's offered some obvious benefits including lower transportation cost, cheaper procurement and economies of scale. 4. Understanding Agro-climatic zones-crop specialization practices: Domino's identified specialty crops in each region and then entrusted the commissary in that region to process that specialty crop. 5. Developing the cold-chain logistics: Domino's used 25 Refrigerated trucks to transport its raw material. Refrigerated trucks were also used to transport product for other companies in the same route. The reason for this is simple: not too many people have refrigerated trucks in the country. And Domino's can offer them quality service because it will give them the same standards what they use for themselves. Domino's were confident that the logistic profit center has the potential to bring in Rs. 10 billion by 2006.
Domino's: Outsourcing the ingredients Ingredient Wheat Cheese Tomatoes Spice Baby corn Exotic Vegetables Pepperoni Jalapeno Source from Jalandhar (Punjab) Karnal, Haryana Bhubaneshwar, Orissa South India Nepal Sri-Lanka Australia Spain

Source: Business World June 2000

You might also like