SUPPLY CHAIN OF

DOMINOS
 Supply Chain Management

Introduction
To supports lean production, Dominos India Pizza has adopted a very effective called
the Make-to-Stock (MTS). This is part of their Supply Chain Management and is
based on just in time (JIT) stock management to manage stock control.

Dominos India Supply Chain

Dominos India like globally has an innovative benchmarking supply chain model. It
ensures all purchases are to be managed vertically and centrally across all franchises
around the world. Jubilant Food-works is the core entity, which runs the supply
chain network is named as Dominos supply chain services – a fully owned
subsidiary, which supplies the dough, raw materials (the condiments, and ingredients
that go into the food products), the kitchen equipment / machinery etc.
This fully owned entity supplies to all the master franchises – effectively giving
the company a few key advantages: (India, 2017)

(1) With a centralized buying department, the company is able to leverage its
negotiating and buying power, and is able to negotiate hard to its best for
the costs for its purchases. This also ensures purchases on a high scale for
vendors which makes suppliers want to tie into the Dominos India supply
chain services. Dominos India has agreed to have combo offer of Coke
company products centrally at all its outlets across India.
 Operations Management Assignment

India has been able to standardise and centralise the supply chain services even at
a master franchisee level,. Taking the India supply chain as an example, we look
at the country level supply chain works:

(1) All the raw materials and food stuffs (dough, ingredients) are prepared at a 4
central commissary in India – Delhi, Mumbai, Bangalore and Kolkata.
(2) The wheat is sourced from Jalandhar, Punjab in North India and Cheese is sourced
from Karnal also in North part of India.
(3) The designated commissary supplies to distribution centres which are located in
these 4 major cities mentioned above.
(4) The distribution centres supply these to the designated specific individual stores
which also has their mini cold storage enough to last the stuff for 4 days (to
ensure a JIT philosophy) – it could be on a more need basis, and this is tracked by
the third party software called Pulse system which keeps track of consumption at
an individual or specific store level
 Quality Management

Products quality and its service is very essential for Dominos India to retain its reputed
brand image and reputation as a company that serves known quality products. This
becomes even more in need requirements knowing the fact that pizza is often seen
historically as an “unhealthy” junky consumption specially for kids. The hygiene factor
too is very important which becomes a quality parameter for customers which over
rules the taste also. The open kitchen format is basically made so as to keep the kitchen
visible to customers who are coming to take away or want to sit there and have a pizza
in selective outlets in India. The quality management starts from procurement itself
form wheat to cheese to toppings to making of it in the central kitchen to the retail
outlet to the boxes they pack in, the hot box they use to carry the pizza and even to the
extent of giving tissue papers.
Warehousing
 
● Insurance given to customers
● Functioning well as centres for inflow and outflow of holds
● Customer is the key.
● Main warehousing facilities belong to the Domino's Pizza LTD located at
Delhi, Mumbai, Bangalore and Kolkata
 
Primary function of Warehousing Facility

Domino's Pizza Distribution (DPD) has the main responsibility to load, unload
and move materials within or near distribution centre.
● Examine and verify load sheets and dough maps
● Pull product for loading using company load sheets
● Receive product according to standards
● Clean up work area
● Maintain proper documentation
 
The warehouses are well equipped with the following mechanism to store the
raw material safely and minimise the storage losses:
1. Cold storage
2. Refrigerator racks
3. Pellets
 
Stock Keeping
 
Plays an extremely important role and maintain ideal ideal level of stock.
For the purpose of stock keeping all regional commissaries make use of ERP
package - BAN. It allows them to perform the following functions:
● Keeping a track of existing level of stock
● Maintain smooth inflow and outflow of goods
● Demand forecasting
 OPEARTION STRATEGY OVERVIEW
On 26 March 1995 Domino's Pizza India Private Ltd operation began in 1996 with its’ first
store in New Delhi. In January 2016, Domino's opened its 1000th outlet in New Delhi. The
company opened 53 new restaurants between January–March 2018 and 150 outlets in the
in financial year 2017-2018

Domino’s is still NO 1 in India WHY?

 because of their exceptional operation strategy, they have been performing very
well in this cluttered and competitive food market in India.
 their philosophy is to have quality control on the sourcing.
 supplying the raw materials including ingredients to the master franchises and
setting parameters of quality always.
Below the Structure of the Domino’s Franchise model in India

Domino's Pizza
LLC(Limited
Liability Company)

Master Franchise

Sub-Franchises Sub-Franchises Sub-Franchises

OPERATION STRATEGY IMPLICATIONS (STORE LEVEL)

 Reducing operating expenditure and improving store efficiencies
 To have good profit, store location should be done strategically
 Floor efficiency from preparation, cooking and packaging which is done proficiently to
complete the operational process.
 Domino’s has adapted its operations in pulse helps to be cost effective by giving easy access
to entire marketing and financial.
 Regular Audit programes for overall and specific improvements.
 Domino's internal supply chain

Domino's has been building supply chain capabilities and fine-tuning its supply chain
efficiency over the last four decades.Domino’s business is run mainly by its franchisees
worldwide. It operates only 363 company-owned stores in the US (as of 2020). In the US and
Canada, it supports the operations of the company-owned stores and franchised stores by
supplying key ingredients for making pizzas.

While on the one hand, this ensures that the required raw material for making pizzas is
always available to the Domino’s stores in the US and Canada, on the other it also reduces
the company’s dependence on external suppliers. This has helped the company manage
operating expenses better and maximize profits for the company and its franchisees. 
Domino’s operates 21 regional dough manufacturing and supply chain
centers in the U.S., two thin-crust manufacturing facilities and one vegetable
processing center in the U.S., and five dough manufacturing and supply chain
centers in Canada. While this has not totally eliminated the need for external
suppliers, it has still reduced the company’s dependence on external
suppliers and serves as critical strength for the company helping it manage
its costs better and grow its profitability.