Lean Supply chain practices

in

Presented by
Atul Jaiswal (24)
Deepak Sohatra(34)
Mansi Pant (56)
 Dominos Pizza
• Founded in 1965 by Tom Monaghan.
• Second-largest Pizza chain in the United States.
• About 8,500 corporate and franchised stores in
55 countries.
• Domino's Pizza outlet in India opened in 1996.
• Close to 274 outlets in 55 cities of India.
• 70 percent of its revenue comes from home
delivery service & around 30 percent is over-
the-counter sales.
 FAST FOOD INDUSTRY
• World’s largest growing food type.
• Industrial growth is 40% a year.
• The organized pizza market in India is worth
about Rs.675 crore.
• Foreign investments are worth Rs.3600
million (1/4th total investment in this sector)
• McDonalds India is the market leader in this
industry.
 CORPORATE STRATEGY

• “ Exceptional people on a mission to be the

best pizza delivery company in the world! “

• 'Think global and act local’

• Fun, happiness and convenience

 OPERATIONS
• Indian operations are ranked number one for the past 3
years.
• Delivers an average of 1 million pizzas per day.
• Over the last 2 years, they opened stores in 15 new cities.

The company operates in three segments:

1. Domestic stores
2. Domestic supply chain
3. International
 DOMINOS SUPPLY CHAIN
• Procurement of raw materials
• Distribution
• Retail Outlets
Future orientated Lean strategies
The future strategy of Dominos is focus on customers
& services. The service level of Dominos is around
98.7 % which assure right product within right time
will be made available 98 times out of 100. By using
LEAN practices efforts are made to improve service
level & ensure 100% customer satisfaction.
1. Relieve Customer From Administrative Tasks :
Systems providing goods and services, and making it easier for
customers to buy and use them. It saves everyone's time of
customers as well as employees. By this process , it is easy come to
know customers, strengthening consumer loyalty, and attracting
new customers .

Administrative Tasks include

i. Purchasing ( strategic)
ii. Procurement
iii. Customer Service
iv. Demand & supply Planning
 Lean Consumption
“Minimizes customers' time and effort by
delivering exactly what they want when and
where they want it". Processes are focused on
eliminating waste, while increasing
productivity, speed of operation and
improving customer interaction
 SIX LEAN CONSUMPTION PRINCIPLES
1. Solve the customer's problem completely by insuring
that all the goods and services work, and work
together.
2. Don't waste the customer's time.
3. Provide exactly what the customer wants.
4. Provide what's wanted exactly where it's wanted.
5. Provide what's wanted where it's wanted exactly when
it's wanted.
6. Continually aggregate solutions to reduce the
customer's time and hassle.
2. Realize “One Stop Shopping” & “One Stop Logistics
Integration”. It simply means single window concept . i.e
One Catalog One Order One delivery
One Invoice One integrative Quality management

3. IT integrated Visual Displays

4. Use 5S..

5. JIT, Postponement strategy

6. Centralized warehouses

7. Supply Chain Integration (SCI) & Network Optimization

Supply Chain Integeration & Network
optimization flow chart:

Supplier Warehouse Outlet

Goals:
 Yield Improvement
 0.15% increase in Gross
Margin
 Raw Waste Reduction
 Not included in Business
Case
Inventory Reduction
 15% decrease on the
Inventory Level
Store Transfers Reduction
Simplification of Order Process
Achievements:
 Yield Improvement
 Gross Margin
improvement > 0.15%
 Raw Waste Reduced
 Reduced by 30%
Average Inventory Reduced
 Reduced by 30%
Store Transfers Halved
Order Time Halved
Results After Lean Application
Thank You.