7 Key Facts From Domino’s Supply Chain

I believe everyone on Earth has certain goal in their life. I also believe anyone can achieve this if they have their mind to do it. – Tom Monaghan

These were the words said by the founder of Domino’s Pizza, Tom Monaghan. We all are aware of the famous pizza brand dominos but do we know its success story?. Let us look at dominos supply chain which played an important role in its success .

In 2014, Domino’s generated dollars 1.9 billion of revenue of waste, 62% was from selling the ingredient to its franchisees supply chain management. Although most of us think of Domino’s as a pizza company, the company majorly relies  on its efficient logistics. Domino’s supply chain is divided into three main tires. The Tier 2 is comprised of key suppliers that ship ingredient to Domino’s distribution center. Tier 2 includes 9 foods, cheese Suppliers, 3 Paradise tomato sauce suppliers, 38 ardent mill floor suppliers and two Domino’s thin crust bread and Veggie Suppliers Center. Tier 2 suppliers, pizza ingredients, cheese, tomato sauce, flour, thin crust, bread to Tier 1 is comprised of 16 domino distribution centers that supply all ingredients to each of the stores in US.

7 things to learn from Domino’s supply chain

1. Centralized supply chain

Domino’s case studies showed that centralized supply chain is highly effective from the point of launching new projects. One of the best evidence from this assumption is the company successful rolling out new recipes.

2. External suppliers

The company has also maintained longstanding partnership with the external suppliers, a huge part of dominos food goes through the external supplier. The company has set strict quality standards for the third party supplier. It is done to ensure the food quality and Product Safety. Its external supply chain partners are part of quality assurance program that ensures systemwide quality.

Leader’s Tip
Leverage technology and data-driven insights to streamline supply chain operations, increase transparency and improve customer experience.

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3. Great service

Domino’s offered guarantee to customer that their visa would be delivered within 30 minutes of missing an order or they would receive the pizza free. This is amazing considering the fact that they have made have to make a custom made pizza package and deliver it all in 30 minutes.

4. Product quality

Domino’s is a leading pizza brand, popular word wide because of its product quality. However, maintained excellent quality could not be possible if Domino’s had not focused on managing its supply chain throughout the QSR sector and  now Most brands have outsourced their supply chains.

5. Technology For Franchisee operations

Pizza Tracker or like the company trademarks it, Domino’s Tracker was a revolution in the foodservice industry .The tracker was introduced in 2008 by which the customers were able to track there order right after they place it . The technology let the franchisees enhance operational transparency.

6. Dominos digital marketing

Domino’s Pizza uses both organic and paid searches to enhance its brand’s presence on search engines. And the company is in good times when it comes to marketing online.

In terms of search engine marketing, the company gained vast sales success using paid search. It utilised smart ad auction strategies on Google and took primacy of Google’s machine learning algorithm.

Both the SEO and SEM strategies of Domino’s desires at selling. When you visit the Indian website or of any other country’s, you will see their menu and two call-to-action buttons. You can order straight from the desktop or download the app.

Leader’s Tip
Focus on continuous improvement by regularly evaluating and adjusting your supply chain strategy to meet changing market demands.

 7. Fortressing Strategy

To reach out to more consumers, Domino’s Pizza utilizes a fortressing strategy. This means that it lessen the delivery radiuses and puts more stores nearby. It operates mainly with in-house delivery executives rather of relying on third-party online food delivery apps.

Such a step helps the company by providing “more flexibility and control over pay and the customer experience”, as mentioned by the CFO, Stu Levy.

This has helped the company nourish its position in both the main markets and build a superior sales network that benefits from a centrally managed supply chain network. The company owned stores as well as the franchised stores in both the US and Canada benefited from the supply chain. Apart from helping the company and its franchisees manage costs with efficiency and effectively, the supply chain has helped them maintain their popularity and demand.

FAQs

Key Takeaways

• Streamlined and integrated Supply chain operations enable faster delivery, ensuring customer satisfaction and loyalty.
• Efficient inventory management and centralized distribution centers minimize costs and improve operational efficiency.
• We value transparency and cooperation with our suppliers and partners to foster strong relationships and ensure a reliable supply chain network.