DOMINO’S OPERATIONS MANAGEMENT

REPORT
 COURSE: OPERATIONS MANAGEMENT
GROUP 6
GROUP PARTICIPATION EVALUATION

No. Name Student ID Sìgnature

1 Đỗ Hữu Thắng 20070036 X

2 Vũ Hà Khánh Linh 20070026 X

3 Nguyễn Minh Duy 20070024 X

4 Nguyễn Anh Đức 20070055 X

5 Nghiêm Xuân Tùng 20070021 X

2
 DOMINO COMPANY
Table of contents
Executive summary ....................................................................................................5
Operations Strategy ....................................................................................................6
Introduction .............................................................................................................6
Corporate Vision .....................................................................................................6
Global Strategic objectives .....................................................................................7
Order qualifiers, Order winners ..............................................................................7
The core competencies of Dominos .......................................................................7
The value chain .......................................................................................................8
Product value chain .................................................................................................9
Operations strategy ...............................................................................................10
Competitor analysis ..............................................................................................11
Product and Service design ......................................................................................13
Introduction ...........................................................................................................13
Product life cycle ..................................................................................................13
Re-designing product ............................................................................................14
Operations challenge of Product/ Service mix .....................................................15
Process design ..........................................................................................................16
Product service continuum....................................................................................16
The conversion process .........................................................................................16
The production process .........................................................................................17
Suggested areas of improvement ..........................................................................18
Proposed improvements ........................................................................................18
Planning and Control ...............................................................................................19
Demand forecasting ..............................................................................................19
Promotions planning .............................................................................................19
Innovation and Improvements .................................................................................22
3
Supply chain management .......................................................................................24
Introduction ...........................................................................................................24
Domino supply chain ............................................................................................25
Critic and recommendations .................................................................................27
Quality management ................................................................................................27
Introduction ...........................................................................................................27
Quality assurance and quality control...................................................................27
Critic and recommendations .................................................................................27
Conclusions & Recommendations ...........................................................................29
References ................................................................................................................31

4
 EXECUTIVE SUMMARY
This report is used to analyze Domino's operations management, design and planning
system. Applying the theory learned from Operation Management to evaluate the
brand's operational strategy in terms of product and service. Particular focus has been
placed on the daily operations processes of the Domino's store located in Hanoi, Viet
Nam. The report is a result of team research, case study analysis, interview and insights
from Dominos existing employees, application of theoretical concepts, models and
prior experience. The study evaluates Dominos has been able to position itself as a
leader in its market segment and overcome the strengths and weaknesses in the
company's existing strategy. Upon dissecting various aspects of the company's
processes, it provides an appreciation of the company's efforts to continuously evolve
in the changing market conditions by incorporating new product design and being
innovative to stay at par with its competition. Finally, upon identifying the areas of
improvement in the company's existing strategy, the report proposes changes and
recommendations that can be incorporated in order to further ensure operational
efficiency thereby maximizing profits and increasing its value offering.

5
 OPERATIONS STRATEGY
A. Introduction
Domino's is one of the world's largest pizza delivery firms. The company is a fast food
industry pioneer with a unique business and operational approach. Domino’s Pizza has
successfully expanded from three locations in the United States to 9,350 locations in
seventy countries since 1960. The franchise concept is used by Domino’s in the United
Kingdom and internationally. Domino's Pizza LLC, the parent corporation, is
headquartered in Michigan, USA. It retains ultimate control over the procurement and
supply of raw materials to master franchisees, as well as the quality of the service and
products offered.

Domino’s
Pizza LLC
Master
Franchise

Sub Sub Sub

Franchise Franchise Franchise

B. Corporate vision
The following essential themes are highlighted in Domino's Corporate Vision
Statement:being better than the competitors. Ensure a high-quality product. Providing
exceptional service. Developing long-term relationships with its personnel and the
areas in which it works.
A clear corporate vision guarantees that the firm and its franchisees can work together
to achieve similar goals, thereby expanding business in a virtuous cycle. The Dominos
Vision is depicted graphically in Figure 2. The broad global vision is seamlessly
translated into specifics at the national level, ensuring that the main strategic vision is
kept in mind at all times.

6
C. Global strategic objectives
Strategic objectives are consistent with the company's vision statement. Domino's
primary strategic objectives are as follows:
− International expansion - competitors
− Menu expansion, pricing point variations, and a 24-hour delivery
− IT Strategy
− Increase investment in retail training and audits to offer consistent service and
product quality
− Human Resource Strategy
− Enable expert franchisees to use their understanding of the local market and
cuisines
− Knowledge Management Strategy

D. Order qualifiers, order winners

Order qualifiers are the essential requirements that a product must fulfill in order to be
sold. When it comes to purchasing, order winners are the characteristics that win over
buyers. The figure below depicts Dominos' order qualifying and order winning criteria.

Domino's Order Winners:

Order Qualifiers for a Order losers: Inconsistent Delivery core
Take-Out Customer: taste: Delay in delivery: competency: Quality that
Convenient: Tasty: Quick: Poor food quality: is consistent: No delays in
Low-cost Premium pricing delivery: Menu selection
is extensive: Tasty

E. The core competencies of dominos

The main competencies of Domino's have grown throughout time. Their distinct
characteristics have enabled the company to dominate the pizza food service sector and
be a leader in home delivery and takeout.

7
 Unique supply
chain model:
Better quality &
consistency

Domino’s
Focused on the competitive Unique global
core advantage global model: allows
competency of leader in pizza take flexibility at the
delivery away/ home regional level
delivery

Level leaner
stores: Better
operating
margins

F. The value chain

It is critical to consider how a consumer need motivates Dominos to develop the
product. The customer need that drives the entire value chain is for a dependable take-
out restaurant, reasonably priced hot quality food, and variety that appeals to the local
palate.Unlike competitors that have established a mixed model of full service
restaurants and takeaway outlets, or a hybrid blend of both, Dominos has concentrated
on these essential customer needs throughout the value chain and has not allowed any
deviations in this area.
This has weakened their strengths in the Dominos-focused market of takeaway/home
delivery. Its worldwide operational strategy enables lean stores, well-trained
employees, and country-level flexibility to tailor menus to consumer preferences. It
has a history of firsts-they were the first to employ TV as a distribution channel, an
online tracking system that allows consumers to track the pizza order, and a proprietary
point-of-sale system, which has inspired the use of technology to make the customer
experience more fulfilling. Dominos has a reputation for dependability and consistent
pizza quality as a result of a combination of the company- level strategy and the
operational strategy; - these strategies have ensured that Dominos continues to meet its
customers' needs.
8
 Process Flow &
Infrastructure :
Seamless from the
customers point of
view, centrally
located stores

Customer
Need:Dependable
takeaway
restaurant : Hot
Food delivered
reliably Operational
Global Strategy :
Strategy
Franchise model,
:Innovative use of
Lean Stores,
technology to ease
Investment in Staff,
the transaction,
Robust quality
Well trained staff
control
local knowledge

G. Product value chain

The five primary activities are processes that are mainly concerned with the production
of the products and services to the external customers. These are necessary to the
business processes. The activities indicated as support activities are activities that are
vital for the development of the appropriate transforming resources. These can be
looked as value adding activities, for instance incorporating the use of technology such
as being able to place orders by text message add to the convenience Dominos provides
and increases the accuracy of order. All these constitute the business processes of the
organization.

9
H. Operations strategy
Domino's operations strategy is mostly focused on offering high-quality customer
service:
1. Reduce operating costs: Reduce operating costs by increasing store efficiencies and
processes.
2. Strategic store placements to assist delivery service: To exploit the store's strategic
location in order to provide speedy service to customers and optimize income.
3. Production-oriented store designs: Use the production-oriented store design to
promote efficient production and speedy client service.
4. Order taking, production, and delivery efficiency: To carry out an efficient
operational procedure that comprises order taking, pizza preparation, cooking, boxing,
and delivery.
5.Use the Dominos PULSE point-of-sale system to improve operating efficiencies,
give corporate management quick access to financial and marketing data, and minimize
time consumption and expenses.
6. Product and process innovations: To foster a culture of innovation that improves
both quality and efficiency.
7. Maintaining a focused menu that is aimed to deliver an appealing quality offering to
clients while eliminating order errors and accelerating the order taking and food
preparation procedures.
8. A thorough store operations review program: To use a comprehensive store audit
program to guarantee that businesses are satisfying both customer expectations.

10
I. Competitor analysis

1. Dominos DPG is the leading player in home-delivery and take-away food services
in the UK region. It has the highest market share when compared to other food
outlets such as Yum! and Papa John‟s over the last five years. This is a huge
contribution in sales due to the fact that no other pizza companies offer delivery as
fast as Dominos (Order-qualifying criteria).
2. From a global perspective, it ranks 12th among all the top food chains in world.
Other snacks joints and coffee shops are a long way ahead. Figure below shows that
Dominos needs to implement some new strategies in order to rank itself higher
relative with other food chains.

11
The Slack Model of Performance Prioritizing (Figure below) would assist Dominos in
prioritizing its operational strategies based on order-winning criteria and current
competition challenges.
A. Excess zone - In comparison to other food chain restaurants, Dominos invests more
in promotional tactics. To entice clients, it provides numerous discount coupons. To
some extent, discount offers serve to attract clients, but too many discounts and
promotions tend to harm the brand's reputation. As a result, Dominos must reduce
spending in that area without affecting sales.
B. Suitable zone - Dominos has an unrivaled home delivery service that allows it to
stay ahead of its competitors. Dominos' 30 - minute luxury has given the business a
strong image among customers. This creates a clear balance between Domino's
competitors and customers.
C. Enhance the zone - In order to keep its reputation, Dominos must increase the
quality of its products. It must prioritize pizza quality while prioritizing all customer-
related aspects. Pizza Hut, for example, provides the number of calories in each pizza.
This demonstrates the brand's interest for the customer. As a result, Dominos should
take certain steps to develop a "emotional connection" with its customers

D. Urgent action zone - In order to improve customer service, Dominos should ensure
that pizzas are delivered quickly. Dominos must improve its present process design for
this. There should be ample servicing space and personnel, as well as extra machines,
to address any machinery breakdown during peak periods.
12
 PRODUCT AND SERVICE DESIGN
A. Introduction
Dominos has positioned and established itself as the pioneer in the pizza delivery
service. Pizza comprises the companys core product with additional items such as subs,
chicken strips/bites, wings, garlic bread and potatoes wedges. A fair degree of
flexibility is available where customers can customize their pizza and can choose to
purchase ‘combos’ thereby providing better value for money. Additional items such as
soft drinks accompany these choices. Dominos has successfully implemented this
concept of mass customization by catering to customer‟s individual needs through
unique combinations of modular components. Dominos standard product and services
offering is universal across the world – quality pizza delivery in approximately thirty
minutes. Across all geographical regions, the target segment is a cost conscious
consumer whose prime concern is convenience.
It is useful to analyse the compan‟s product performance and use it to evaluate how
successful the product has been, this sets the stage for Dominos product redesign.

B. Product life cycle

Introduction
Dominos began creating pizza in 1960 and subsequently expanded to
the United Kingdom and other nations.
Phase of Concept Development
When a local franchise took control, internet ordering replaced
traditional ways.
Production
Despite the notion of attainable pizza having existed for two decades,
sales decreased in 2009. The reduction was caused by a shift in
customer preferences.
Service
As crunch cakes and oven-backed sandwiches are introduced into
shops, Domino's menus have altered by up to 80%. The "30-minute
delivery" and "pizza-tracker" techniques, as well as new iPhone
applications, were widely employed in redesigning services.
Withdrawal
Dominos understood that customers needed new menus, so it
redesigned its fundamental offering.
13
C. Re-designing product
Dominos publicly confessed, as Russell Weiner stated. "It's time to modify our taste
because consumers no longer enjoy it," therefore the fundamental product was
redesigned. As Dominos publicly confessed, transparent consumer feedback revealed
that many despised the flavor and pizza was of low quality.. Furthermore, client input
was used to modify methods and operational plans. The recipes were reconfigured
during the re-designing process as experiments were carried out by combining cheese,
crust, sauces, and so on. This redesign was carried out with the help of customers, as
the outcomes were heavily impacted by them. Its redesign allows it to compete with
Pizza Hut, Pepperoni. Customer input was the primary cause for the product's
makeover, which increased sales.

14
 Customer Role NPD Phase Key Issue/Managerial Challenge
Select customer opinion to develop
new product Market researchers collect
Customer as customer information by studying
Ideation
resource customer buying patterns and using
tools such as customer surveys and
focus groups.
Gather customer opinion that is
utilized in the design and development
task. Set new product approach along
Customer as co- Design and
with core competency of the company.
creator development
Product development team works on
exploratory project by mixing
component and taste test.
Customer as Product Blind taste test to ensure taste and
user testing quality compared to competitor.
Work with advertising agency to
present new product and development
Product
and do a road show with franchisees.
support
Get feedback from customer and
support customer interaction
D. Operations challenge of product/ service mix
Domino's main dominance has been in the United States, where there are no corporate
stores. Furthermore, a shocking video of two Domino's employees violating health
standard codes on YouTube exacerbated the problem, as one employee had a criminal
background, resulting in lower sales. To address these issues, the company must
improve the hiring process and implement a rigid code of ethics. Furthermore, the
strategy of a 30-minute delivery guarantee was initially implemented but canceled due
to an increase in accidents. A woman was killed by a Domino's driver, which lends
credence to the statement (Alder, 1993). This is a service challenge that the company
faced; to ensure customer attraction, the concept was reintroduced as a "gift" to
consumers (UPS - Dominos, 2019).

15
 PROCESS DESIGN
A. Product service continuum
It has a unique entity in the product-service range, consisting of both packaging and
services to serve as a foundation for the product.

B. The conversion process

Customers are present throughout the value chain as visible and invisible conversions
occur. An Open Kitchen concept and a new design for customers to wait and
experience while their order is placed are examples of marketing intelligence used in
operational strategies at Dominos (Alfs, 2013).

Transforming
Transformed Product -
Resources -
resources - Pizza's &
(1) Staff (1)Ingredients other food
(2) Kitchen items
(2) Recipies
Equipment

16
C. The production process
Domino's production process is organized from the time an order is placed until the
customer accepts it. The order is initially placed over the phone, internet, or email.
Following that, a PULSE system order is entered to improve performance. The order
appears on the screen. Members of the assembly line then pick up the order and apply
the ingredient. Another team member adds the topping and places the item in the oven
while it is being made. The third team member will then take it out of the oven and put
it in a box. When it is prepared for delivery, the final action is dispatched and it is given
to clients who are waiting (Guinness, 2012)

Pizza

Personal
Small Personal Box
Medium
Large Small Box
Phone Side Orders Placed Medium
Order Chicken Strips Cook- Pack- Box Delivery
Assembly
Web Chicken Dunkers in Sale
ing ing
Placed Line Potato
Large Box
Collection
Collection Oven
Wedges
Side Orders
Chicken Wings Boxes
Drinks
Ice- creams

Master Franchise Dough production, ingredients and equipment purchasing and supply,
Support Services training, operations, IT, marketing, PR, finance, HR, property, franchise sales,
leasing, transport, warehousing and administration.

17
D. Suggested areas of improvement
Process: One of the common problems faced at the Domino's make line is that by its
nature, the road isn't balanced, and this is often due to two factors:
(1) Time taken for every activity isn't an equivalent.
(2) Since the method isn't automated, individual efficiencies of team members leads
to an uneven flow of labor. The above two reasons tend to cause inefficiencies within
the make line and leads to bottlenecks, especially during peak hours within the
evenings. Another major concern facing the local Viet Nam franchise is that the
drivers aren't equipped a GPS based navigation system, efficient on-time deliveries
are primarily hooked into the topographical knowledge of the individual drivers and
once more, it's left to an individual's capabilities to make sure on time deliveries,
which account for 70% of the entire sales

E. Proposed improvements
Dominos explores the need for radical innovation in its supply chain system. The
supply chain adapts when changes are necessary. An example of position innovation
is the three-dimensional car top sign technique, which Dominos introduced. The 30-
minute delivery policy at Domino's and the development of sauce spoodles are
examples of process innovation at the company (Goldenberg & Mazursky) (Tripathy,
2011). Pizza is protected from physical damage, moisture, and cheese sticking to the
box with the help of corrugated boxes from Domino's and heat-retaining bags.

18
 PLANNING AND CONTROL
A. Demand forecasting
Dominos uses the ‘Prescient’ distribution-planning suite for its inventory and
demand planning (forecasting). With the assistance of Prescient, Dominos created
an answer called
Matched receipts to demand module‟ which maximizes their overall supply chain
efficiency by facilitating ‘lean’ operations.
The prescient-planning suite monitors inventory and determines when a distribution
centre needs a product. It optimizes the orders by watching the minimum material
required for every product, supported the prevailing inventory levels at the
distribution centre.
The planning suite receives requests from its retail stores through the company‟s
PeopleSoft Enterprise Resource Planning (ERP) system; it aggregates these requests
to determine replenishment requirements. It also considers any constraints like dollar
amount per order – subsequent order is then supported the prior order.

B. Promotions planning
Starting in the 1960s as a small pizza-making and home delivery company run by
two brothers, it has become the best-located Pizza City in the world.

19
- Bringing added value to consumers, Dominos Pizza's strategy
Today's world is made up of millions of different brands offering the same
products to consumers. Therefore, for a company to be successful, it is necessary
to provide customers with added value that sets it apart from the rest. Initially,
this modest family business was responsible for getting its products to Michigan
households as quickly as possible. This is still the basis of supporting the
differentiated value of the multinational.
Therefore, the delivery will be completely free if the order does not reach their
home within half an hour. In this way, the customer is provided with the certainty
of prompt delivery and the engine is capable of free shipping, so the public will
be satisfied with the purchase of the product. In each country, Domino's Pizza's
goals are different, but they are always aligned with providing quality,
differentiated products to create a loyal audience for its brand and products. For
example, in Spain, the advertising statement "La pizza Como to querías"
indicates that the product the customer will find is just right. what they expect, is
authentic dough with authentic ingredients.
- Some actions of Domino's Pizza’s marketing plan
Domino's Pizza's target audience is identified as being mainly in the middle or
lower segment. Therefore, the low prices of the products and the large number of
offers and promotions that the brand constantly offers to attract this type of
audience. However, even though one of its competitors, Pizza Hut, prices are
comparable, consumers may prefer other fast food chains such as McDonald's,
KFC, or Subway due to their prices. they are lower than this pizzeria.
Domino's Pizza is characterized by providing quality products, made with quality
ingredients and delivered with good service. However, this is not always the case.
The company conducted research with consumer groups about its products to find
out their opinions about the brand, which resulted in negative results. As a result,
the organization took improvement actions to correct the image of the company
and the quality of the pizzas. So he used criticism to change and grow.
One of the other actions the fast food chain took was to accommodate the public.
This is the case with the vegetarian and celiac sociocultural trend, for which
Domino's has introduced products that fit this growing social segment in its menu.

20
Another example of adaptation is the use of meat products that have been
produced according to halal practices in the United Kingdom, thus taking into
account the high proportion of the Muslim population residing there.
- Crisis management
One of the most recent crises involving Domino's Pizza was in 2009 when two
employees of the company uploaded a video to YouTube of one of their kitchens
spitting and playing with food that was then delivered to a customer. client. The
action quickly went viral on social media, so the company had to take crisis media
actions to address it.
In this regard, the president of the organization uploaded a video to the same
platform on which the conflict began, personally apologizing to all consumers.
This record has achieved an even greater impact than the impact of the incident
trigger. Next, the company created a Twitter profile in which they entered the
link to the video, and through it, the company is ready to solve any doubts or
questions of the customers.
Of course, the company sued two employees, who were automatically fired and
these people face penalties that threaten the health of customers.
Since then, Domino's Pizza has focused on a strategy of maintaining a good
reputation with the public by being devoted to them and listening to their opinions.
- Take action to renew yourself
One value proposition for Dominos Pizza to get closer to customers and keep
them satisfied is the creation of an e-commerce application. This includes giving
consumers the option to prepare their pizzas through the app, then order and eat
them. In this way, users have learned how to create products and are allowed to
share the results obtained on their social networks, inviting their friends to
participate in this initiative. Through this act of creativity, the company wants to
stand out and differentiate from the competition, and get customers to talk about
the brand by expanding the visibility of the brand in the market.
On the other hand, advertising also actively participates in Domino's Pizza's
marketing strategy. The company has launched a campaign to highlight the trends
of the moment in terms of the technological revolution in social networks. It

21
 reflects with different Snapchat filters how people feel about eating pizza from
this chain.
In short, brands must be constantly renewed to know how to stay in the market.
One of the actions that Domino's Pizza could use in the future and is being studied
is using an automated robot to deliver pizza at home.

INNOVATION AND IMPROVEMENTS

Dominos has innovated many new products and processes hence increasing its
quality and efficiency. The company has developed its innovative approaches in
four main areas:
• Paradigm Innovation
• Position Innovation
• Process Innovation
• Product innovation

Domino's Pizza is a famous American delivery pizza chain, but few Vietnamese
know that it is a fast-growing company.

22
In the United States, where the restaurant industry is struggling, it's rare for the stock
prices of food and beverage companies to rise so sharply in recent years. One of the
company's development steps is to improve the quality and implement thematic
marketing campaigns to provide more delicious dishes. However, to better
understand the needs of customers and improve the speed and convenience that are
important standards of fast food, they have taken the business of developing digital
technology as the foundation, to the extent that called a "technology company"
DIGITAL PLATFORM DEVELOPMENT
Domino's Pizza of America has developed a digital platform called "AnyWare" that
allows customers to order from anywhere and from any terminal. By creating a
dedicated customer page called profile, pizza orders can be fulfilled quickly from
any channel. Google Home, Amazon/Echo, Facebook Messenger, smart TVs,
Apple/Android smartwatches, connected cars, text messaging, Twitter, and more.
DOMINO'S HEATWAVE & HOT BAGS
Domino’s HeatWave hot bags were introduced in 1998 to keep pizzas oven-hot
during normal delivery. Originally, each hot bag contained a patented heating
mechanism charged by plugging into an electric outlet at the store. The outer
material of the bag is made with water-repellent nylon, which replaced the less
sturdy vinyl material previously used. Domino’s has continued to innovate and
evolve the technology, removing the electric cord and heating each bag via an
induction heating system. The latest edition of Domino’s HeatWave hot bags relies
solely on a patented insulation system that keeps pizzas both hot and crisp –
eliminating the need for electricity.
A BETTER BOX
Domino’s was the innovator behind the sturdy, corrugated pizza box, which keeps
moisture from weakening the box and prevents the cheese from sticking to the top
of the box during delivery because nobody wants a messy pizza.
DOMINO'S ONLINE ORDERING
The beginning of Domino’s technological innovation started with its online and
mobile ordering system, which launched in 2007. Today, Domino’s generates more
than 75% of sales via digital ordering channels.

23
As for the Vietnamese market, Domino has applied and developed popular delivery
services such as Grab, Bee, or Gojek to be able to reach closer customers when today
everyone can own a smartphone. Besides, the airline still maintains its delivery
service with many policies and incentives to satisfy diners. The company used the
famous slogan "30 MINUTES OR FREE PIZZA". That is the pizza will be delivered
within 30 minutes, if the pizza is delivered late, the customer will be free of the order.
Orders of 4 or more pizzas qualify as bulk orders, not valid for a service guarantee
of fewer than 30 minutes or free. Maximum Domino's liability is Rs. 300. Delivery
guarantee applicable at the first barrier point. Domino's does not penalize its drivers
for late delivery. 30 minutes or free not applicable when store operating conditions
or not suitable, to be announced at the time of order taking. Dominos Pizzas
preserves the right to withdraw the service guarantee without prior information. 30
minutes delivery guarantee is not applicable on New years eve, on the Ganesh
festival, Christmas, and Durga Pooja, the service guarantee may be withdrawn
temporarily given difficult operating conditions for delivery. Conditions apply.
Domino Pizza is known as the largest pizza delivery chain in the world, but sales
plummeted from 2006 to 2008. Yet, in those difficult times, the company continued
to invest in technology and create drastic changes. The company says its digital sales
generated $2 billion annually in 2013, and more than half of its sales now come from
digital platforms. Also, in 2016, Best and Worst Restaurant Apps recorded a high
score with over 300,000 reviews and won second place. It also proves that digitizing
stores increases customer engagement.

SUPPLY CHAIN MANAGEMENT

A. Introduction
In order to exist and earn an excellent brand image in people’s mind, professionalism
in every aspect is the key, especially in managing the supply chain to maintain the
stability in quantity and quality of all goods. Supply chain management operations
provide credibility in ingredients at competitive prices. With this action, brand can
help franchisees have time to manage other complicated parts without worrying
about the supply source and quality.
Dominos Pizza has adopted the Make-to-Stock Approach for its Supply Chain
Management. the corporate supply chain is supports lean production and is
predicated on just in time stock management and stock control.
24
B. Domino supply chain
Dominos has an innovative supply chain model that ensures all purchases are
managed centrally across all franchises round the world. The core entity, which runs
the availability chain network is named Dominos supply chain services – a totally
owned subsidiary which supplies the dough, raw materials (the condiments, and
ingredients that enter the food products), the kitchen equipment / machinery. More
importantly, domino’s supply chain is a separate business segment, with that
solution, that company can only need to manage this network and manage them
entirely. Furthermore, this strategy could minimize operating costs and maximize
profits for the franchisees.
- Internal supply chain
Domino’s supply chain business will bring 59% of the revenue in 2020. Over the
past four decades, the organization has been developing its supply chain
capabilities and enhancing its efficiency. Franchises all over the world manage
the majority of domino’s operations. In the US, it only runs 363 company owned
locations. By providing essential components for creating pizzas, it supports the
operations of company-owned stored and franchised locations in the US and
Canada. On the other hand this ensures that the required raw material for making
pizzas is available to domino’s store. Initially, it also lessens the company's
reliance on outside vendors. This has assisted the business in better managing
operating costs and maximizing profits for both the business and its franchisees.
Even Though this can not totally delete all the need for external suppliers and
helps the business control its costs more effectively and increase profitability. It
is a crucial strength for the business. Next, Around 900 tractors and trailers have
been leased by the business to assist its supply chain activities. Domino's has built
a solid supply chain and intends to keep investing in supply chain operations to
expand its capability. Increasing the company's supply chain capabilities will
enable it to handle business expansion more quickly in the future.
There is a fact that the firm it not requiring Domino's franchisees to buy raw
materials from their suplier. They can choose materials from other suppliers if it
can satisfy domino’s strictly quality standard which is really difficult. Beside that,
doing business with Domino's is that it offers high-quality raw materials at
reasonable pricing and the quality has been qualified. Which is why they choose

25
Domino’s as their main supplier. Last but not least, the business has profit-
sharing agreements with the retailers who purchase all of their food from its
supply chain hubs. Moreover, The company's relationships with the franchisees
have been strengthened as a result of this arrangement.
- External supply chain
The business has long-standing relationships with outside suppliers. The majority
of Domino's annual food budget is spent on outside vendors. For its independent
contractors, the business has established high quality criteria. It is carried out to
guarantee product safety and food quality in order to syncronized the taste and
safety worldwide. To make sure that its supply chain partners are adhering to its
quality standards, the organization conducts on-site inspections, third party audits,
and product reviews. The brand's largest food expense in the United States is
cheese. Currently, the firm buys all of its US pizza cheese from a single vendor.
In order to guarantee a constant supply of cheese, it entered into an arrangement
with its US cheese supplier in 2017. The corporation has agreed to a seven-year
pricing schedule as part of this deal in order to purchase all of the suppliers'
cheese. Additionally, the business obtains the majority of its meat toppings from
other suppliers. The agreement between the business and its top beef supplier will
be in effect until June 2023. However, in the event of poor quality or other
violations, the corporation may potentially revoke these agreements. Another
leading third-party supplier for Domino’s is Coca-Cola, the drink will make any
meal become more craving. In 2019, the corporation and Coca-Cola renegotiated
their current contract. In accordance with this arrangement, Coca-Cola will
continue to serve as the business's only beverage supplier through 2023. More
than that, Domino’s continues to assess its sourcing approach in order to
implement the best changes and promote faster growth. It also has alternate
sources for the aforementioned goods. However, the business will continue to
forge close bonds with its current suppliers, who offer high-quality goods at
reasonable pricing. In the past, the organization has not encountered any
substantial supply shortages or delays. Although the expenses imposed by
Domino's supply chain partners can change, the firm has historically been able to
pass the extra costs on to the stores.

26
C. Critic and recommendations
Companies must concentrate on supply chain management if they want to succeed
in a highly competitive market environment. Even for QSR (Quick Service
Restaurant) brands, supply chain quality may be the most important step in winning.
We can say that Domino's is a well-known pizza company with a solid reputation
for producing high-quality goods. However, if Domino's had not concentrated on
managing its supply chain, it would not have been possible to maintain high quality.
Success in the QSR sector depends on the effectiveness and efficiency of your supply
chain, whether you manage it yourself or outsource it to other parties. To summarize,
Its supply chain was crucial in allowing the business to easily withstand the
pandemic's effects.

QUALITY MANAGEMENT
A. Introduction
Quality product and service is the basis for Domino's to maintain their brand image
and keep the reputation of the brand. With the stereotype of "unhealthy" pizza,
Domino always has to improve the quality and bring the image of the brand closer
to customers.

B. Quality assurance and quality control

99% Domino’s stores are franchised,so Domino’s owns its own supply chain
network. To ensure and maintain the same quality output from each store. Domino’s
is required to prepare and store ingredients in certified food-safe warehouses, from
which the items are distributed to stores or franchises thus reducing the need to stock
up on material and ensure a Just-in- time setup. Centralized control of supply ensures
consistency, maintaining all ingredients to produce homogenous products.
Domino’s agreements with suppliers regarding ingredient and packing required each
product to have an accompanying specification that is checked by a food technician
to ensure safety is maintained, samples are analyzed, testing and their risk assessed
by a Food Technologist or certified to the BRC global standard for food safety.

C. Critic and recommendations

Domino's has some high quality standards for food but it is difficult to manage
service quality, a more robust approach to providing quality of customer service is
recommendations to maintain, build customer loyalty.

27
 Farmers Producers

Dominos Commissaries

Stores Stores Stores Stores

28
 CONCLUSIONS & RECOMMENDATIONS
In summary, Dominos is currently in a state of change because from detailed analysis
of Dominos operations, it is clear that innovation is the main approach to make its
operational strategies work in an integrated way positive and constructive. It has the
potential to come up with innovative as well as cost-effective operational strategies
to increase efficiency in operations management. On the basis of the 5 performance
target, it can be said that Dominos has high speed, reliability, flexibility in operation
and moderate quality while the cost is high but still under control so far. Many
initiators come up with new innovation to compete with competitors because it never
took a pull-based approach but devised push-based strategies. Operational strategies
have been designed after customer feedback to ensure that operations are carried out
to meet consumer needs, especially customer take away. A consumer survey
conducted in 2016 found that the quality was substandard and it serves as a basis for
improvement as the company redesigns its manufacturing processes according to
customer preferences.
Despite some serious challenges from competitors, Dominos is still testing and
enhancing its basic products as it moves from its core product pizza to other items.
This further complicates the supply chain for the organization as cooking times
increase, which ultimately indicates extended delivery times. The speed and
durability factors of performance are affected by it. Currently in a state of flux it is
not clear at the moment but if the expansion is being effectively and efficiently
managed by Dominos it could provide leverage to strengthen the core products by
how to increase overall market share.
Supply chain management is working properly but total quality management is
required which can reduce waste and errors by ensuring quality comes first.
Furthermore, it is difficult for Dominos to maintain the proper balance because
different operations consume different time and it is not automated. This is one of
the disadvantages of the operation, there can be bottlenecks in production.
Furthermore, a high-quality GPRS navigation system should be installed in the car
and to be able to deliver on time during peak hours due to topographic know-how as
more than 60% of Dominos sales are through deliverie. at home.
Proper inventory management is required because at the time of stocking excess
flour and boxes etc. requested more than usual. Warehouse management areas need
to be developed and distribution channels must also be very quick and efficient to
deliver materials in a timely manner. An inventory control tool such as a supply

29
chain optimizer should be used and inventory optimization software should be
retained to maintain tracking. Similarly, quality should be improved by introducing
test tables and control charts which should be used more often. To enhance customer
loyalty, an emotional connection to the product is needed by training the staff to be
more friendly, and the environment should encourage family visits. It should
increase its promotions on social media, or viral marketing as the emotional
intelligence used to promote the brand should be done so that it facilitates the
operations activities progress in the right channel.

30
 REFERENCES
https://biz.dominos.com/about-us/innovations/
https://www.dominos.co.in/hot-pizza-30-minutes-delivery-guarantee-at-dominos-
get-pizza-hot
https://www.studocu.com/vn/document/truong-dai-hoc-quoc-te-dai-hoc-quoc-gia-
thanh-pho-ho-chi-minh/intro-to-business-administration/s6-seven-gold-ducks-
what-are-the-reasons-for-dominos-pizzas-success/36035617
https://www.notesmatic.com/how-dominos-manages-an-excellent-supply-chain/
Tripathy, B. (2011), Operation Management, available at:
http://www.slideshare.net/bntripathy85/mba-operations-management-assignment
https://www.dominos.co.in/hot-pizza-30-minutes-delivery-guarantee-at-dominos-
get-pizza-hot
https://www.grin.com/document/337519
https://www.researchgate.net/publication/349635224_Operation_Strategy_Overvie
w-_Dominos
https://biz.dominos.com/about-us/innovations/

31