DOMINO'S PIZZA INDIA LTD.
Domino's Pizza India Ltd. was incorporated in March 1995 as the master franchisee for
India and Nepal, of Domino's Pizza International Inc., of USA. Moreover, the company
holds the master franchisee rights for Sri Lanka and Bangladesh through its wholly
owned subsidiary. Mr. Shyam S. Bhartia and Mr. Hari S. Bhartia of the Jubilant
Organosys Group (formerly, the Vam Organic Group) were the promoters of the
Since inception, Domino's Pizza India Ltd. has proceeded to become one of the largest
and fastest growing international food chains in South Asia. The first Domino's Pizza
store in India opened in January 1996, at New Delhi. Today, Domino's Pizza India has
grown into a countrywide network of over 125 outlets in 30 cities and is the leader in the
fast food delivery segment.
Ever since it was established, Domino's Pizza India has maintained its position of market
leadership with its constant product innovation and maintenance of stringent service
standards. More importantly, it has established a reputation for being a home delivery
specialist capable of delivering its pizzas within 30 minutes to its community of loyal
customers from its entire chain of stores around the country. Customers can order their
pizzas by calling a single countrywide Hunger Helpline - 1600-111-123. In fact,
Domino's was the first one to start this facility for its customers.
Domino's vision is focused on "Exceptional people on a mission to be the best pizza
delivery company in the world! ". Domino's is committed to bringing fun and excitement
to the lives of its customers by delivering delicious pizzas to their doorstep in 30 minutes
or less, and all its strategies are aimed at fulfilling this commitment towards its large and
ever-growing customer base. Thus, time and again Domino's has been innovating
toppings suitable to the taste buds of the local populace and these have been very well
accepted by the Indian market.
Dominos intends to penetrate the markets completely by opening up 20-25 outlets per
year in the country. Dominos has a young and enthusiastic team of over 1,500 employees.
It has outlets more than any other corporation in the business of food, not just the pizza
Branded pizza market stands at about Rs 275 to 325 crore. Today, Dominos has emerged as
the leader in the fast food segment with about 65% of market share of pizza delivery in India But
if you look at the total market, that is delivery plus dining plus takeaway, it would have a
40 per cent market share.”
DOMINO'S PIZZA INDIA LTD. - LOGISTICS
The entire country has been divided into 4 regions- Northern region, Western region,
Eastern Region &Southern region
Each region has a Domino's control centre. This center handles the procurement of raw
materials and supplying them to the various outlets within their regional jurisdiction.
Such a center is called a 'Commissary'. Therefore Domino's has 4 commissaries across
India. They are located at the following places:
Northern region - Delhi
Western region - Mumbai
Eastern Region - Calcutta
Southern region- Banglore
My efforts revolve around the Northern & Western Commissary because Domino's
logistics starts off with the supply and storage of raw materials at the Northern
Commissary located at New Delhi from where the materials are supplied to different
parts of the country. Also Mumbai lies within the jurisdiction of western commissary.
The logistics of Domino's has been broken up into the following parts for analysis:
COMMISSARY LEVEL OPERATIONS
1. Procurement & Supply Of Raw Materials
2. Warehousing & Storage
3. Stock Keeping
4. Dough preparation process
OUTLET LEVEL OPERATIONS
1. Storage of raw materials
2. Customer Order
3. The Production Process-How Is A Pizza Made?
4. Packaging Process
5. The Pizza Delivery Process- From A Franchisee Outlet To The Customer's
COMMISSARY LEVEL OPERATIONS
1. PROCUREMENT & SUPPLY OF RAW MATERIALS
Domino's has rolled out its own logistics model in order to suit its needs. This logistics
plan starts off with the supply and storage of raw materials at the Northern Commissary
located at New Delhi. It begins right from the point Domino's buys wheat for making the
dough required for pizza bases. Here's how: Domino's first decides procurement strategy
for its key raw materials: wheat, baby corn, tomatoes and spices (for regular ingredients
like onions, each commissary sources and processes locally). For instance, wheat is the
cheapest at Jalandhar's wholesale markets.
Its refrigerated trucks then get the wheat back to the commissary in Delhi, which handles
the processing of the wheat and prepares the flour. Now to get to Jalandhar, the trucks
would have to go through Chandigarh, or at least, pass close to it. With its cosmopolitan
population, Chandigarh is clearly a potential market for Domino's products. It has,
therefore, opened an outlet there. The cost of entry is low because there is no additional
transportation cost incurred in shipping products. That's the first thumb rule: "Wherever
there is a potential market which falls on the route between the commissary in Delhi and
its prime sourcing base Jalandhar, Domino's will open an outlet". So, if there is no major
deviation from its route plan, Domino's costs then automatically get apportioned across
many more outlets. The same logic is extended to Shimla.
From Chandigarh, Shimla is just a three-hour drive away with a large market, especially
in the tourist season. And on the way back to Delhi, the trucks pick up cheese from
Karnal, a town on the Chandigarh-Delhi highway. This cheese is transported to its
commissaries across the country.
Domino's logistics system is based on a simple precept -- backhauling. Earlier, if it had to
open an outlet in Jalandhar, the commissary in Delhi would send all the raw material in
processed form to Jalandhar. But the truck would have to return empty on its way back.
Now with the new system, Domino's is able to leverage its fleet much better.
The accompanying infographic (table1) explains how Domino's new hub-and-spoke
model will work. There are two hubs in the northern region -- the commissary in Delhi
and the principal sourcing area in Jalandhar. The spokes are Shimla and Chandigarh.
Now, how does Domino's stand to gain? There are three obvious benefits:
• Lower transportation costs
• Cheaper procurement
• Economies of scale.
It's already cut out the duplication in procurement and processing of the raw materials
across each of the three commissaries. The old model of self-contained commissaries had
another disadvantage: adding new outlets did not translate into greater economies of
Now key task is to extend the same clustering approach to the western, southern and
eastern parts of the country. In each case, the commissaries typically located near the
largest market in that region. Their rollout began only when they mapped out the
Based on the agricultural map of India, Domino's is looking for the best product at the
lowest cost. By that logic, tomatoes will come from Bhubaneshwar, spices from the
south, baby corn from Nepal (where it's 40% cheaper) and exotic vegetables from Sri
Similarly, Domino's Indian operations are already being extended to Nepal, Sri Lanka
and Dhaka. It is also establishing a commissary in Sri Lanka.
Identifying speciality crops in each region also has strategic implications for Domino's. It
allows the commissary in a region to specialise in processing a particular crop.
For instance, the commissary for the eastern region in Calcutta will be responsible for
buying tomatoes, processing them and then sending them to all the other commissaries.
Similarly, the northern commissary will send out the flour. This way, not only does it cut
out duplication, the dangers of perishability are also minimised.
With the new cluster model formalised, Dominos is using its fleet of 25 refrigerated
trucks (the number will be increased to 100 in the next five years) to transport products
for other companies on the same route. For instance, if an operator in Kochi needs to
transport specialty cheese, he can use the Domino's fleet to ship his products.
DOMINO'S REGIONAL COMMISSORIES & PROCUREMENT CENTRES
FOR RAW MATERIALS (table 1)
Vegetables Sri Lanka
MOVEMENT OF RAW MATERIALS - NORTHERN COMMISSARY
PROCUREMENT & SUPPLY OF RAW MATERIALS: WESTERN
This effort was focused at understanding the inflow & outflow of raw materials
pertaining to the western commissary located at Mumbai.
Postal Address Of The Commissary: -
Domino's Pizza India Ltd.
Junction Of Western Express Highway
Versave, Thane, Maharashtra – 401104
LIST OF THE MAJOR RAW MATERIALS PROCURED:
Item Name Place Of
Average Order Qty* Frequency Of Order
Flour New Bombay 10 Tonnes 3 Times/ Month
Gluten New Bombay 5-6 Tonnes 3 Times/ Month
Sauce Amritsar 9 Tonnes 2 Times/ Month
Chicken Pune 1 to 1&1/2 Tonnes 4 Times/Month
*The figures depicting the quantity of raw materials ordered are approximate estimates
and are subject to fluctuations due to various reasons.
THE RAW MATERIALS PROCURED ARE DISTRIBUTED IN THE
Mode Of Distribution-Trucks
No. Of Branches Covered By The Western Commissary-36
Total No. Of Trucks Used-5
Location No. Of
No. Of vehicles used
Mumbai 23 1 Time/ 2days Refrigerated
Pune 5 1 Time/ 3days -Do- 1
Goa 3 1 Time/ Week -Do- 1
Ahmedabad 5 1 Time/ 3 Days -Do- 1
PROCUREMENT & SUPPLY OF RAW MATERIALS: WESTERN
Western Commissary (Mumbai)
The delivery trucks have been specifically designed for the purpose of distributing
perishable raw materials over long distances. They are fully equipped with cold-storage
facilities and temperature control devices to ensure proper storage and handling of good
and avoid losses during transit.
2. WAREHOUSING & STORAGE
The functions of warehousing are carried out at commissary level. All the commissaries
have a warehousing facility. These warehouses act as centers for inflow and outflow of
The major warehousing facilities belonging to Domino's Pizza India Ltd. are located at:
• Kolkata (Calcutta)
Primary Functions Of The Warehousing Facility:
A Domino's Pizza Distribution (DPD) warehouse has the main responsibility to load,
unload and move materials within or near the distribution center.
• Examine and verify load sheets and dough maps
• Pull product for loading using company load sheets
• Strip, sanitize and pre-cool trailers in preparation for loading
• Receive products according to standards
• Clean up work area
• Maintain proper documentation
The warehouses are well equipped with the following mechanisms to store the raw
materials safely and minimize storage losses: -
• Cold Storage
• Refrigerated Racks
3. STOCK KEEPING
Being in the food industry, stock keeping and management plays an extremely role.
Domino's realizes the importance of the function and makes its best efforts to maintain an
ideal level of stock.
For the purpose of stock keeping all the regional commissaries make use of ERP
package – BAN. It allows them to perform the following functions:
• Keeping a track of the existing level of stock
• Maintaining smooth inflow and outflow of goods
• Demand forecasting
4. GENERIC PROCESS FLOWCHART OF DOUGH PREPARATION
The process of dough preparation is also carried out at the commissary level. The
process can be represented as follows:
Oil + Gluten + Salts Calcium
DOUGH PREPERATION PROCESS
DOMINO'S FRANCHISEE OUTLET LOGISTICS ANALYSIS
Name Of The Franchisee: - Mr. Ali Bharadwaj
Postal Address Of The Franchisee Outlet:
Domino's Pizza India Ltd.
Shop No.3/4, Kohinoor
Veer Savarkar Road
Store Manager- Mr. Azim Siddiqui
Frequency Of Delivery – 1 time/day
Truck Check In Time- 1.00 to 1.15 A.M.
Truck Check Out Time- 1.20 to 1.35 A.M.
Main Raw Material Delivered:
PackagingTo The Warehouse/
OPERATION-POST DOUGH PREPERATION
Storage Of Delivered Raw Materials:
All the raw materials supplied to the outlet are stored in the Storage Assembly.
The assembly consists of equipments and devices specifically designed for the storage
and preservation of perishable food items.
It consists of the following:
DEVICE R.M. PRESERVED
Refrigerated Cabin With Racks • Chicken
Pre-Heated Oven • Dough
• Certain spices
Order Placement By A Customer
When a customer calls up at the Domino's Outlet and places his order, the receptionist
asks for the customer's name and telephone number. This number is then fed into a
computer loaded with telephone directory software. This allows the outlet to know the
exact address of the customer to whom the pizza is supposed to be delivered. This entire
process takes around 1 minute.
Once the order is received, it is forwarded to the 'Make Line' in the kitchen department
where the actual production process takes place.
How Is The Pizza Made?
GENERIC PROCESS FLOWCHART OF PIZZA PREPARATION:
PACKAGING OF THE PIZZA - MATERIAL & PROPERTIES OF THE
Topping & Cheese
Cutting The Pizza Into Equal Slices
Packing & Sealing
Pizza packaging plays an important part in ensuring the quality of the product on which
the success of the business is based. Retaining heat and dispersing steam are the chief
features of Domino's pizza packaging.
Packing of the pizza done at the outlet for delivery to the customer consists of 2 parts: -
a) The Pizza Box
b) Hotwave Bag
a) The Pizza Box
Although a pizza box can be made of most any material — e.g. Plastic and molded paper
pulp — paper has generally been the material of choice for most pizza box concepts, for
following three reasons.
• It is economical
• Substantial stacking strength or crush resistant
• Resists condensation build-up on the interior surfaces
Basic Model: -
Material characteristics: -
The packaging for a pizza plays an important part in the marketing of the business: it
carries the company's distinctive logo, and it also carries the product on which the
success of the business is based. Protecting the product, retaining heat and dispersing
steam are the chief functional features of Domino's pizza packaging.
Packaging and the environment is clearly also a concern of Domino's. More than 80% of
the corrugated board used in their pizza boxes is made from recycled paper. The
remainder is sourced from sustainable forests. The company encourages its customers to
recycle their box packaging.
Paperboard is basically a single sheet of very thick paper. It comes in many forms having
various attributes. Common examples include chipboard and solid bleached sulfate, or
SBS, board. The original pizza packaging was made of paperboard, and some pizza boxes
still are today. The main advantage of paperboard is that it's cheap.
Like paperboard, corrugated board also comes in many forms. The most common is
single wallboard, also known as double face board. It's what's used for most pizza boxes.
It consists of two outer sheets of flat paper, called facings or liners, glued to a fluted, or
corrugated, inner sheet, called medium.
The paper used for the facing or liner is
called linerboard. The paper used for the
medium is called medium.
When only one facing is glued to a medium
the resulting product is called single face
board. Corrugated board can be imparted
with various characteristics. This is achieved through varying the type and thickness of
paper used in making the board. In addition, the application of coatings or treatments can
further impart unique attributes. This includes moisture-resistance, grease-resistance, and
fire-resistance, among other things.
b) Domino's Heatwave Bag
Domino's HeatWave delivery bags contain a
patented disc that is pre-heated electrically. This
innovation, combined with the bag's 3M
Thinsulate lining and water-repellent nylon
exterior, keeps the pizza hot during delivery.
These bags come insulated and uninsulated, and
will generally keep hot pizza hot for about 30–
45 minutes. This type of bag is almost always in two parts - A core and a bag. The cores
are either powered by AC current from an outlet, DC current from a car cigarette lighter
or both. Domino's uses a magnetic induction system to heat their bags, removing the
power cords (and the risk of banging the cord around) from the bag.
WHAT IS THE TIME DEADLINE FOLLOWED FOR THE VARIOUS
The entire operation from taking the customer order to packing a freshly made pizza runs
on a 11 minute schedule
ACTIVITY TIME TAKEN
Order Placement 1
Pizza Making 1
Quality Check 1
Sealing & Exit 2
The Domino’s Pizza Ltd. is known for its 30-minute home delivery model. The
company proudly calls itself "The Pizza Delivery Experts"
Total Time Taken
Mode of Delivery - Motor Bikes
No. Of Motor Bikes – 26
Area under the jurisdiction of Domino's Prabhadevi Outlet
The franchisee outlet located at Prabhadevi caters to the customers within the
western region of Dadar-Prabhadevi-Worli belt.
Once the pizza has been packed and sealed, the delivery boy decides the route that he will
follow for the pizza delivery and confirm the order one last time. The moment he is
leaving, the delivery boy shouts the out-of-the-door time. Which is normally between 10-
12 minutes after the order placement by the customer. Then everybody yells out 'drive
safe'. When he returns he punches the time in. At the end of the day the average delivery
time for all his orders is checked. This helps the manager figure out which orders were
not delivered in time. The next day the store manager calls each one of those whose
orders got delayed and apologises.