Domino’s Pizza Domino’s pizza is the second largest pizza company with 9,436 sto
ID: 372633 • Letter: D
Question
Domino’s Pizza
Domino’s pizza is the second largest pizza company with 9,436 stores globally, 95% of which are franchised.Domino's Pizza is the world's second-largest pizza company with 9,436 stores globally, 95% of which are franchised. Domino's franchisees in the U.S. market were able to purchase fresh dough, cheese, pizza toppings, and other menu ingredients and store supplies directly from the company-owned supply chain system. When commodity prices became more volatile in 2007 and 2008, executives at Domino's changed the way they worked with suppliers and franchisees to manage costs and risks, and better leverage the assets of the supply chain system. As the company prepared to accelerate international growth in 2011 and beyond, executives contemplated how to best apply their purchasing and supply chain knowledge into new international markets.Domino's Pizza is the world's second-largest pizza company with 9,436 stores globally, 95% of which are franchised. Domino's franchisees in the U.S. market were able to purchase fresh dough, cheese, pizza toppings, and other menu ingredients and store supplies directly from the company-owned supply chain system. When commodity prices became more volatile in 2007 and 2008, executives at Domino's changed the way they worked with suppliers and franchisees to manage costs and risks, and better leverage the assets of the supply chain system. As the company prepared to accelerate international growth in 2011 and beyond, executives contemplated how to best apply their purchasing and supply chain knowledge into new international markets. Domino's Pizza is the world's second-largest pizza company with 9,436 stores globally, 95% of which are franchised. Domino's franchisees in the U.S. market were able to purchase fresh dough, cheese, pizza toppings, and other menu ingredients and store supplies directly from the company-owned supply chain system. When commodity prices became more volatile in 2007 and 2008, executives at Domino's changed the way they worked with suppliers and franchisees to manage costs and risks, and better leverage the assets of the supply chain system. As the company prepared to accelerate international growth in 2011 and beyond, executives contemplated how to best apply their purchasing and supply chain knowledge into new international markets. Domino's Pizza is the world's second-largest pizza company with 9,436 stores globally, 95% of which are franchised. Domino's franchisees in the U.S. market were able to purchase fresh dough, cheese, pizza toppings, and other menu ingredients and store supplies directly from the company-owned supply chain system. When commodity prices became more volatile in 2007 and 2008, executives at Domino's changed the way they worked with suppliers and franchisees to manage costs and risks, and better leverage the assets of the supply chain system. As the company prepared to accelerate international growth in 2011 and beyond, executives contemplated how to best apply their purchasing and supply chain knowledge into new international markets. Domino’s franchisees in the US market were able to purchase fresh dough, cheese, pizza toppings, and other menu ingredients and store supplies directly from the company-owned supply chain system. When commodity prices became more volatile in 2007 and 2008, executives at Dominos changed the way they worked with suppliers and franchisees to manage costs and risks, and better leverage the assets of the supply chain system. As the company prepared to accelerate international growth in 2011 and beyond, executives contemplated how to best apply their purchasing and supply chain knowledge into new international markets.
Assignment questions:
How does Domino’s supply chain services model and support its brand and its overall strategy?
Does Domino’s supply chain services model provide a competitive advantage? How?
Do you see any major flaws in Domino’s current supply chain services model? How might you change it or make improvements?
Should Domino’s attempt to expand its supply chain internationally?
Explanation / Answer
VISSION / MISSION OF DOMINO'S
SELL MORE PIZZA, HAVE MORE FUN.
THIS STATEMENT CONTAINS OF TWO IMPORTANT ASPECTS - PRODUCTS AND/ OR SERVICES OFFERED AND THE TARGET MARKET
HOW DOES DOMINO'S SUPPLY CHAIN SERVICES MODEL SUPPORT ITS BRAND AND ITS OVERALL STRATEGY?
AS A PIZZA DELIVERY CHAIN DOMINO'S COULD NOT BEEN AS SUCCESSFUL AS IT IS NOW. THE CORPORATION REAL MONEY COMES FROM THEIR FRANCHISES. DOMINO'S MONEY COMES FROM SELLING THE INGREDIENTS TO THEIR FRANCHISES, THE DOUGH AND TOPPINGS. FUELING ITS OWN FRANCHISES WITH DOUGH, TOPPING INGREDIENTS, EQUIPMENT AND STORE SUPPLIES IS WORTH A LOT OF MONEY ANNUALLY TO REVENUE. SO IN A MANNER OF SPEAKING DOMINO'S WORKS AS CUSTOMER AND AS A SUPPLIER OF THEIR OWN BRAND SIMILAR TO A MONOPHONY.
DOMINOS UTILIZES A VERTICALLY INTEGRATED SYSTEM MANUFACTURING AND DELIVERING MOST RAW MATERIALS TO THE STORE; THIS SYSTEM ALLOWS DOMINOS TO LEVERAGE THE PURCHASING POWER OFTHOUSANDS OF COMPANY-OWNED AND FRANCHISEDSTORES NATIONWIDE KEEPING FOOD COSTS DOWN; INCREASING SPEED OF SERVICE AND IMPROVINGSALES/CUSTOMER SERVICE
DOES DOMINO'S SUPPLY CHAIN MODEL PROVIDE A COMPETITIVE ADVANTAGE? HOW?
YES. THE COMPETITIVE ADVANTAGE OF DOMINO'S DO NOT COME FROM SELLING PIZZA TO YOUR DOOR, IT ACTUALLY COMES FROM SELLING THE PRODUCTION SYSTEM AND HAVING A ALMOST TOTAL MANAGEMENT OF THEIR FRANCHISES SUPPLY CHAIN. IN MOST CASES DOMINO'S WORKS AS A UNIQUE SUPPLIER TO THEIR FRANCHISES WHICH GIVES TO THE COMPANY A CONSISTENT INCOME JUST BECAUSE OF THAT.
DO YOU SEE ANY MAJOR FLAWS IN DOMINO'S SUPPLY CHAIN MODEL? HOW WOULD YOU CHANGE IT?
DOMINO'S PIZZA HAS ADOPTED THE MAKE-TO-STOCK APPROACH FOR THE MANAGEMENT OF THEIR SUPPLY CHAIN. THEY ENTIRELY SUPPLY ALL THEIR MASTERS FRANCHISES. NEVERTHELESS STORES MIGHT GET CAUGHT WITH HIGH LEVELS OF INVENTORY AND STOCK ITEMS. A MORE EFFICIENT STOCK MANAGEMENT AND CONTROL TOOL TO THE STORES COMBINE WITH BETTER FORECASTING TO PREDICT THE DEMAND WOULD BE A GOOD WAY TO IMPROVE THE SUPPLY CHAIN.
SHOULD DOMINO’S ATTEMPT TO EXPAND ITS SUPPLY CHAIN INTERNATIONALLY?
YES , BECAUSE THE SUCCESS OF DOMINO’S OUTSIDE THE U.S IS DUE TO THE COLLABORATIVE RELATIONSHIP BETWEEN OUR EXPECTATION FRANCHISES AND THE CORPORATE TEAM THAT THE SUPPORTS THEM.
THEY CONTINOUSLY STRIVE ON ONE BRAND – ONE SYSTEM IN ORDER TO BE THE BEST PIZZA DELKIVERY COMPANY IN T WORLD
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