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FAST FOOD COMPARABLES Looking at the source chains of Dominos and pizza hut

Content
  1. INTRODUCTION
  2. DOMINO'S OVERVIEW
  3. Founded in 1965 by Tom Monaghan; Domino's is the second-largest pizza string in america (dominosbiz. com). As it stands, 70 percent of its earnings comes from home delivery service and around 30 percent is over-the-counter sales. Domino's also offers a leading international existence; with 8, 533 franchise stores found in more than 60 international marketplaces (datamonitor. com).
  4. PRODUCTS
  1. OPERATIONS
  2. The company performs in three segments:
  3. - Domestic stores
  4. - Supply chain
  5. - International
  6. Domestic Stores
  7. Dominos utilizes its company-owned stores to check services and technologies, which can then be transferred onto franchises. The Local Stores also generate a grounded income for the company while having the ability to maintain some main ownership.
  8. SUPPLY CHAIN
  9. Dominos utilizes a vertically included system developing and providing most raw materials to the stores; this technique allows Domino's to leverage the purchasing electric power of a large number of company-owned and franchised stores nationwide keeping food costs down; increasing rate of service and increasing sales/customer service.
  10. International
  11. Procurement of natural materials
  12. Distribution
  13. The Domino's pizza dough is prepared from the whole wheat through its own dough production plants, and then sent to the shops again in refrigerated pickup trucks (cold string logistics) for set up and sales.
  14. Product assembly
  15. Overview of the resource chain (Diagram)
  16. :Sup chain. pdf
  17. PIZZA HUT OVERVIEW
  18. CORPORATE STRATEGY
  19. PRODUCTS
  20. SUPPLY String- Again end supply chain
  21. Making the deal - the merchandise to the consumer
  22. COMPARE, CONTRAST, AND Evaluation - Considering the Value Chain
  23. Cold chain logistics
  24. Make-To-Order Model
  25. Conclusion
More...

INTRODUCTION

This report desires to give overview to the organisational source string of both Domino's and Pizza Hut; following a comparative research of the various methods used throughout the companies' source chains; assessing their viability in adding value, reducing risk and producing optimum success & efficiency towards profiting.

DOMINO'S OVERVIEW

Founded in 1965 by Tom Monaghan; Domino's is the second-largest pizza string in america (dominosbiz. com). As it stands, 70 percent of its earnings comes from home delivery service and around 30 percent is over-the-counter sales. Domino's also offers a leading international existence; with 8, 533 franchise stores found in more than 60 international marketplaces (datamonitor. com).

PRODUCTS

Domino's is as a pizza delivery company, which functions in more than 60 countries worldwide. The business's key product and services include: Drinks, Branded Merchandise, Sweets, Pizzas, Side Meals and Home Delivery.

OPERATIONS

The company performs in three segments:

- Domestic stores

- Supply chain

- International

Domestic Stores

Dominos utilizes its company-owned stores to check services and technologies, which can then be transferred onto franchises. The Local Stores also generate a grounded income for the company while having the ability to maintain some main ownership.

SUPPLY CHAIN

Dominos utilizes a vertically included system developing and providing most raw materials to the stores; this technique allows Domino's to leverage the purchasing electric power of a large number of company-owned and franchised stores nationwide keeping food costs down; increasing rate of service and increasing sales/customer service.

International

The international procedure of Domino's involves 3, 469 franchised stores outside the United States. Domino's operates six resource chain centres internationally, which make dough and distribute food and resources. During 2007, the international income were approximated at $126. 9 million. (wikinvest. com)

Procurement of natural materials

The gathering of raw materials is an important part of the Domino's business design as they are the suppliers of their own dough. This enables Domino's to keep a competitive advantage by lowering their costs and also making sure product quality. Recycleables are gathered from local third party suppliers and are shipped utilizing cold storage area trucks to the dough developing facilities. The dough is refined and then sent to the stores for the syndication and production (dominosbiz. com).

Distribution

The Domino's pizza dough is prepared from the whole wheat through its own dough production plants, and then sent to the shops again in refrigerated pickup trucks (cold string logistics) for set up and sales.

Product assembly

Once the raw materials reach the store, product set up takes place over a designed to order basis. All non-valuable common products are manufactured into something, which contains recognized value with consumers (value adding). Through the in-store assembly lines, toppings (vegetables, beef, sauce, cheese) are added to the prefabricated pizza platform, it is cooked, and finally dished up to customers in a timely fashion. Ways of syndication to consumers (pizza) change from in-store collection to delivery via courier.

Overview of the resource chain (Diagram)

:Sup chain. pdf

PIZZA HUT OVERVIEW

Pizza Hut focuses on the operation of pizza restaurants and takeaway huts. Pizza Hut is a subsidiary of Yum! Brands, Inc. Its record goes back to 1958, when Frank and Dan Carney opened up the first restaurant in Wichita, Kansas (datamonitor. com). In 1973, Pizza Hut extended into international market segments. Restaurants were exposed in Islington, London as well as in Japan and Canada. Pizza Hut functions in 92 countries across the world. As of 2009, Pizza Hut had 7, 566 items in america, and 5, 715 devices beyond your US (datamonitor. com).

CORPORATE STRATEGY

The overall commercial communication is "to fulfill our customer by offering them the best. " Pizza Hut utilizes the C. H. A. M. P. S (Sanitation, Hospitality, Correctness, Maintenance, Product quality and Velocity) model to manage its inspections and amounts within its supply chain (pizzahut. co. uk). Finally Pizza Hut comes with the 3F's (Fun, Friendly and Familiar) guide when working with customer support and staff management (advertising. corporateir. net).

PRODUCTS

The Pizza Hut restaurant string specializes in the sales of ready-to-eat pizza products. The chain sells a number of pizzas with a variety of toppings.

In some restaurants, Pizza Hut offers breadsticks, pasta, salads and sandwiches (pizzahut. co. uk). Menu items outside of the US are usually much like those offered in the US, although pizza toppings tend to be matched up to local preferences and tastes.

SUPPLY String- Again end supply chain

The Supply string of pizza hut contains immediate suppliers and indirect suppliers.

The Direct suppliers of Pizza hut are:

Pepsi Company

Regional dough production companies (Pizza base)

Secondary materials (meats, vegetables, sauces) result from a Dominos warehouse that acquisitions over a "Commissary" basis. The purchase is via indirect local suppliers:

Local Meats markets

Vegetable markets

Sauce companies

All of the immediate material is requested daily predicated on a manager's forecast; cold chain carry systems are being used to deliver over a next day basis. Indirect materials are purchased by the warehouse and are supplied on a every week basis (pizzahut. co. uk).

Making the deal - the merchandise to the consumer

Once the products from key and secondary resources are stocked within the establishment, it's time to put all the parts jointly and make the copy of deal to the consumer.

Pizza hut at this point takes purchases from its walk-in and cell phone/text/internet customers. The assembly brand design of taking orders and getting ready food ensures effective orchestration of this process. The procedure is meant to adopt no longer then 15 minutes from inserting an order to providing the customer.

Macintosh HD:Users:lindseyaliksanyan:Desktop:resource graph PH. pdf

(scribd. com)(http://www. iqra. edu. pk/)

COMPARE, CONTRAST, AND Evaluation - Considering the Value Chain

Inbound logistics/Outbound logistics obtaining, warehousing, inventory orders

Both Pizza Hut and Domino's possessed effective and effective ways of transportation with an emphasis on keeping product value (Hopkinson, 2011). There were slight distinctions - Both companies used cold string logistics to keep product freshness, however Pizza Hut got more emphasis on maintaining indirect stock within its cold storage space facilities. Having more stock in storage space allows Pizza Hut to take care of fluctuations popular increasing their capacity, however it also heightens costs and places the business at more threat of having a extra surplus rather than enough demand IE: the Bullwhip Impact/Forrester Result (quickmba. com). Stock is maintained by the individual managers of both Pizza Hut and Domino's. Suppliers & warehouses estimate the purchases utilizing preceding data. Both Pizza Hut and Domino's make use of the same/similar purchasing methods - with the sole difference being in Domino's producing its dough.

Cold chain logistics

For both companies, chilly chain logistics, travelling, and storage-based services are used; this is an essential part within the resource chain. An unbroken cool chain can be an uninterrupted series of storage and circulation activities which maintain a given heat range. Both Domino's and Pizza Hut utilize wintry string logistics to help lengthen and ensure the shelf life of these products, keeping value within the source chain (icmrindia. org).

Operations/Outbound logistics value-creating activities inputs-to-product.

Pizza Hut, with their cold train transport and storage space facilities, has hardly any operational cost in comparison to Domino's. Domino's has a considerable functional cost and time because of the developing facilities; however, this also diminishes their overall, which also reduces their overall costs. Employing a vertically integrated source string system, Domino's produces their center products such as dough; utilizing recycleables (whole wheat) they purchase in large quantities at lower costs. Domino's and Pizza Hut both show main integration between Outbound logistics, which is generally towards the end of the worthiness chain, and Businesses as production uses model of made to order mass customization; the production of their main product is done on site - consumers gain the feeling of customization which is in fact limited - This offers substantial Value to the supply chain.

Marketing/Sales/Service purchasing the merchandise, advertising, pricing, etc.

All marketing is performed through corporate headquarters subdivided via territories IE: Europe, Americas, and China etc. Marketings for both companies are targeted to the preferences within each country, aligning their products consequently IE: Indian Spicy Pizza etc. This technique integrated with made-to-order mass customizable products and friendly/fast service; escalates the Value proposition: (Value = Benefits / Cost) directly (Hopkinson, 2011).

Make-To-Order Model

To reduce inventory and increase overall flexibility, both Domino's and Pizza Hut utilize Make-to-Order systems presenting consumers the sensation of choice, whilst keeping a set structure of offerings.

Technology Development technology used to aid the worthiness chain

Inventory & stock analysis systems are crucial at both chains to avoid demand mismatch, without these systems capacity could potentially be exceeded or underestimated. The perfect solution is both companies have taken is daily stock research completed by the average person managers coupled with technological stock tracking systems (Christopher, 2005).

Conclusion

The function of any supply string is assessed in terms of these earnings, average product load rate, response time, and their capacity utilization. Both Pizza Hut and its competition Domino's have a solid functioning supply string. The only advice could be to reduce overhead, but no to the point that there is no room to increase or to manage fluctuations popular. AN INCREASED capacity utilization for both companies would lowers associated risk being that costs are reduced, but it could also hamper gain if future demand rose beyond the supply available.

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