DOMINO’S OPERATIONS MANAGEMENT

REPORT
 COURSE: OPERATIONS MANAGEMENT
GROUP 6
GROUP PARTICIPATION EVALUATION

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

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 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
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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

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 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.

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

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 Unique supply
chain model:
Better quality
& consistency

Domino’s Unique global

Focused on competitive model: allows
the core advantage global flexibility at
competency leader in pizza the regional
of delivery take away/ home 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.
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 Process Flow &
Infrastructure :
Seamless from
the customers
point of view,
centrally located
stores

Customer
Need:Dependabl
e takeaway
restaurant : Hot
Food delivered Operational
Global Strategy : reliably Strategy :Innovat
Franchise model, ive use of
Lean Stores, technology to
Investment in ease the
Staff, Robust transaction, Well
quality control trained staff 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.

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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.

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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.

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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.
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 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.
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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.

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 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).

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 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

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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
Chicken Strips Delivery
Order Assembly Cook- Pack- Box
Web Chicken Dunkers in
ing Sale
Placed Line Potato ing Large Box Collection
Collection Oven
Wedges Side Orders
Boxes
Chicken Wings
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.

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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.

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 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.

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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.
- 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

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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. 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

21
 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 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

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

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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.
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

24
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.

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

25
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
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

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 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.

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.

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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.

Farmers Producers

Dominos Commissaries

Stores Stores Stores Stores

C C C C C C

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 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
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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.

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 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_Overview-_Dominos
https://biz.dominos.com/about-us/innovations/

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