DOMINOS SUPPLY

CHAIN STUDY

BY:- RONIT, LAY, DHEERAJ, SAKSHI, ISHIKA

 INTRODUCTION
• Domino's outlet in India opened in 1996.
• It is second largest in revenue over the world.
• Jubilant Food Works Limited, a Jubilant Bhatia Group company
holds the Master Franchise rights for India, Nepal, Sri Lanka and
Bangladesh.
• By 6th august 2014 there are 772 Domino's pizza restaurants in
India.
• Revenue
70% from home deliveries
30% from OTC (over the counter) sales
 Case Summary: Domino's India
• First franchise opened in India in 1996.
• Initial focus was on delivery strategy, home delivery was a
new concept in India.
• In 2000s there were outlets in most major cities.
• They decided to Improve their supply chain model
through modifications to their logistics.
DOMINO’S INDIA’S SUPPLY CHAIN

RAW MATERIALS PROCESSED GOODS FINAL PRODUCTS

SUPPLIERS COMMISSARIES RETAIL OUTLETS CUSTOMER

 INVENTORY MANAGEMENT

• Maintain at least 4 days of Inventory.

• Mini Cold storage at every outlet.
• Inventory Level are monitored Centrally via POS data using
Intura Vision in every outlet
• Two POS in every store:
• Telephonic Sales
• In-store Sales
 INVENTORY MANAGEMENT

ITEM SHELF LIFE

DOUGH BALL 5 DAYS

MEXICAN WRAP BASE 3-4 DAYS

CHEESE DIP 4-5 DAYS

SEASONING AND TOPPINGS 4-5 DAYS

ONION, TOMATO, CAPSICUM 5 DAYS

CHEESE BLEND 4-5 DAYS

 MARKETING STRATEGIES
• 30 mins Door step delivery otherwise free.
• Wide variety of pizza's to choose.
• Buy one get one free pizza's on Friday.
• Reminding customer's through messages on Friday for offers
• Domino's pizza offers quality product that comes hot on time. The pizza is fresh, with no
frozen
ingredients. Domino has its own specially design boxes to keep the pizza hot for a longer
time.
• The customers will get the pizza in 30-35 min, from the moment they place the order.
Pizza system will be designed in the fastest way to go from the restaurant to the the driver.
• If the order is online, the pizza tracker can be used. It shows what's is the current location
of the pizza. It traced its way from the restaurant to your home..
 DOMINOS LOGISTIC MODEL
• Analysts felt that Domino's took a cue from McDonald's supply chain
model.
• In early 2000, Domino's came out with its own Logistics model.
• Wheat was cheapest in Jalandhar's wholesale markets.
• The pizza dough and other items prepared in commissaries were
• then sent to the retail outlets again in the refrigerated trucks.
• The retail outlets had to use up the processed dough
within 3days of delivery.
• To get to Jalandhar, the trucks had to pass chandigarh,
Through it is a cosmopolitan population it opend an
outlet to reduce their costs.
• It opened outlet in Shimla.
• On the way back to Delhi, the trucks could pick up cheese from
Karnal.
• With the revamped supply chain, Domino's was able to leverage its
fleet much better.
• The logistics model adopted by Domino's offered some obvious
benefits including lower transportation costs, cheaper procurement
and economies of scale.
• Bhatia said, “Our roll-out began only after we mapped out our
procurement strategy
• Domino's also identified specialty crops in each region.
• Bhatia planned to use Domino's 25 refrigerated trucks to transport
products for other companies on the same route.
• Profit center had the potential to bring in Rs 10bn by 2006.