Domino's India Logistics Management

By :

SUDIPTA DUTTA (10DR006)SONALISHA DAS (10DR010)SAMIRAN GOSWAMI (10DR017)

BACKGROUND NOTE

In the late 1950s, Dominick De Varti (Varti) owned a small pizza store named DomiNick’s Pizza on the Eastern Michigan University campus in Ypsilanti, Michigan.

In 1960, two brothers who were students of the University of Michigan – Thomas S. Monaghan (Thomas) and James S. Monaghan bought that store.

Thomas decided to change the name of his first store, DomiNick’s Pizza, and one of his employees suggested the name Domino’s Pizza (Domino’s).

DOMINO’S INDIA

In early 2000, Pawan Bhatia, the former CEO of Domino’s Pizza India (Domino’s) was a man in a hurry.

He had frantically reworked the pizza chain's India strategy. Bhatia planned to open 150 new outlets by the end of 2002 covering 23 cities(Tier-I),including Bhubaneshwar (Orissa) and Jamshedpur (Bihar). 

As part of its expansion plans Domino's revamped its entire supply chain operations, from sourcing raw materials to shipping them for processing at a central location to delivering it to the customer's.

DOMINOS SUPPLY CHAIN

1. Procurement of raw materials

Raw materials like wheat, baby corn, tomatoes and spices are got, out of which wheat was bought in from jalandhar and then sent to the commissaries in refrigerated trucks.

4 commissaries (Regional Centralized Facilities)

1. Delhi 2.Bangalore3.Kolkata 4.Mumbai

2. Distribution

Pizza dough processed from the wheat is then sent to the retail outlets again in refrigerated trucks.

Logistics requirement for sending frozen foods, at a temperature of ₋18⁰C and of refrigerated trucks in which food is sent at a temperature range of between 1 to 4⁰C.

3. Retail Outlets

1. Regular stores2. Super stores :

High traffic, More counters

3. Express stores : those where people were expected to walk in and order rather than ask for home delivery.

SUPPLY CHAIN DIAGRAM

WHEAT

REFRIGERATED TRUCK

WAREHOUSE

DOUGH

RETAIL OUTLET

ISSUES

• Domino’s were in 16 cities so the level of complexity is bit high for them.They cant go for centralized system.

 • The retail outlets had to use up the processed

dough within three days of delivery.

• Need of call center.

 

THE PIZZA HOTLINE

In April 2000, Domino’s introduced a common toll-free number in all the 16 cities it operated, which had been branded as the Hunger Helpline

It worked seemed simple: each time a customer called, his location was identified and the order was transferred to the nearest Domino’s outlet, which then took on the task of delivering the order 30 minutes.

  Advantage

• It’s crucial to build a low-cost supply chain operation which takes costs out of the system and in turn gives us greater pricing flexibility in the marketplace.

CONCLUSIONFrom the above study we can conclude that the new logistic model of DOMINO’S INDIA is cost-effective.

Thank You