Domino's Pizza has a complex global supply chain and logistics network to deliver over 1 million pizzas per day worldwide. In India, Domino's uses a hub-and-spoke model with 4 regional commissaries that receive raw materials from various domestic and international suppliers and distribute them to over 1,000 stores across the country via refrigerated trucks. The stores are replenished every 4 days and utilize a point-of-sale system to monitor inventory levels. A key part of Domino's strategy in India is its promise to deliver orders within 30 minutes or provide them for free, which requires efficient operations and route planning.

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SUPPLY CHAIN OF DOMINO’S PIZZA
Presented by:
Fayez Mohammad Khan
Irfan Razi
Rehan Mohammad
Saddam Hussain

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About Domino’s Pizza
 Founded in 1960, Domino’s Pizza is American restaurant chain
 It has 12,900 stores in more than 80 countries
 Globally it has around 2,60,000 employees
 Delivers an average of 1 million pizzas per day worldwide
 In India, Jubilant Foodworks ltd. Is the master owner of the
franchise
Source: https://biz.dominos.com/web/public/about-dominos/fun-facts

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 First store of Domino’s Pizza in India opened in 1996
 There are around 1,044 stores in India*
 70% of the items on Domino’s menu are new since 2008
Continued..
* As per latest data available on their website

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Classification of Stores
 REGULAR STORE
 People walk-in and order, they can also ask for home delivery
 EXPRESS STORE
 People were expected to walk-in and order rather than home
delivery
 SUPER STORE
 These are regular stores, but they generate high traffic

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Procurement ModelRawmaterials
From national
and
international
supplier
Commissaries
4 regional
Commissaries
• Delhi
• Mumbai
• Kolkata
• Bengaluru
Store
Depending
upon the
location and
nearest
commissaries

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Logistics at Domino’s Pizza
Dough
Refrigerated
Trucks
CommissariesWheat
processed
Suppliers
(Toppings &
Seasoning)
Retail Outlet

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Hub and Spoke Model
COMMISSARIE
S
Outlet
Outlet
OutletOutlet
Outlet

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Pros of Hub and Spoke model
 More efficient use of transportation resources
 Complicated operations such as sorting can be carried out at
hub rather than at every store
 Spokes are simple and so new ones can easily be created

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Cons of Hub and Spoke model
 Day to day operations may be inflexible
 Route scheduling is complicated for the network operator
 Scarce resources must be used carefully to avoid starving of
the outlet
 Two trips are required to reach most destinations

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Outsourcing the Ingredients’
INGREDIENTS SOURCE
Wheat Karnal, Haryana
Tomatoes Bhubaneswar, Orissa
Spice South India
Baby Corn Nepal
Exotic Vegetables Sri Lanka
Pepperoni Australia
Jalapeno Spain
Ingredients like onions are sourced and processed locally.

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Domino’s Supply Chain
 The commissaries receive all the raw materials.
 The semi-finished products are then shipped from their to
adjoining states in refrigerated trucks.
 Excellent leveraging of its fleet of trucks.
 For example, when wheat comes from Jalandhar to Delhi the
trucks have to pass through Chandigarh.
 Chandigarh has a large cosmopolitan population, so they opened
many stores there.

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 On the way back to Jalandhar the trucks took back the semi-
finished products to the stores in Chandigarh.
 The same logic extended to Shimla which is three hour drive
away from Chandigarh.
 Shimla has a large market, especially in the tourist season.
 On the way back to a Delhi, the trucks pick up cheese from
Karnal, Haryana, a town on the Delhi-Chandigarh highway.
Continued..

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Managing the Inventory
 Maintain at least 4-5 days of inventory
 Trucks from commissaries replenish inventory every 4 days
 Mini cold storage at every outlet
 Inventory level is monitored centrally via. POS (Point-of-sale) data
using INTURA VISION from every outlet
 Minimum two POS in every store
 Telephonic Sales
 In-store Sales

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Managing the Inventory
ITEMS SHELF LIFE
Dough Balls 5 Days
Cheese Dips 4-5 Days
Seasoning and Toppings 4-5 Days
Onion, Tomato, Capsicum 5 Days
Mexican wrap base 3-4 Days

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Quality Initiatives
 Sales
 Training
 F T D (Friday Training Day)
 H T R (Handle The Rush)
 Rubber Gloves
 Head covers

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The Promise
 If the order is not delivered in 30 mins then the order is free.
 A key feature of Domino’s that is only in India.
 Many things make delivering it a challenge such as
 Preparation, baking and boxing takes 15-20 mins.
 Giving the deliverymen 10-15 mins to deliver the order.

17. + Continued..
 The motorbikes are modified to restrict their maximum speed to
45 kmph.
 The areas are densely populated cities with not so good
infrastructure and traffic jams at peak times.
 Despite all these challenges less than 0.5% take more than 30
mins to reach the customer.

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 Many steps taken to ensure it for example;
 The geographical delivery area is first carefully analyzed.
 Prior to opening of a store they do runs at 40-45 kmph at the
peak times.
 Customers more than a reliable 10 min ride away in peak traffic
are informed they would no longer receive deliveries.
 They are given discount coupons for in-store use instead.
Continued..

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Any Questions?