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Dominos Pizza is the well known company that delivers pizza and operates through a network of company-owned and franchise-owned stores in the United States and international markets including Malaysia, India, Canada, and Australia. Domino's Pizza was started out small by brothers Tom and James Monaghan at Michigan, United States with just one store called "DomiNick's" in 1960. After the few years, James Monaghan trades his half of the business to Tom Monaghan and Tom changed the company name to "Domino's Pizza" in 1965. Domino's Pizza today is the second-largest pizza chain in the United States and has more than 10,000 owned and franchised stores in the United States and more than 65 international markets. The Domino's menu features a variety of Italian-American entrees and slide dishes such as pizza, pasta, bread bowls, salads, chicken wing, and breadsticks. Having so many retail shop and variety type of food means keeping the stock and logistic is not easy task. Domino's Pizza sure have some unique way on keep it supply chain running smooth and tidy.
The vision of Domino's Pizza is, "illustrates a company of exceptional people on a mission to be the best pizza delivery company in the world."(Domino's Pizza, 2008)
The mission of Domino's Pizza is, "committed to an inclusive culture which values the contributions of their customers, team members, suppliers, and neighbors."
2.0 Strength of Domino's Pizza
Effective inventory management
Domino's Pizza took a major advantage in supply chain efficiency in 2002 when it centralized inventory management operations at its headquarters. The centralized operation allowed the company to standardize sourcing, planning, inventory management and replenishment on each distribution center across the national network. Domino's pizza is using software from Prescient Applied Intelligence; a provider of supply chain and advanced commerce solutions to help them achieve the centralized inventory management operations. In this operation, the entire distribution operation uses only 9 planners with the help of the Prescient Applied Intelligence software. The Prescient distribution planning suite works as modules for inventory and demand planning optimized order management and advanced time-phase replenishment. However, the centralized operation needs support from a new method because Domino's have a lot of retail stores around the world, the size of the distribution centers are quite small compare to other company. And still not only receive all ingredients and supplies, but they also prepare the dough, so it can be shipped fresh to the stores. Domino introduces 'matched receipts to demand module' to help solve this problem. The idea is made by the Prescient Applied Intelligence software. The system monitor inventory on each distribution center and determines which product have higher demand. The data is gathering through the company PeopleSoft enterprise resource planning system and then combine with Prescient Applied Intelligence software. When the stock in the distribution center is not enough to meet the need of the retail store, the raw material will be ordered more. If the supply is adequate, the stock will not be order and the next order will be consider what was placed on the prior order and go through the same process. Though this way, the freshness of the stock also can be preserve and increase the food quality. Besides that, Domino's want its truck with smaller quantities of multiple items and let the staggered ordering system to balance inbound receipts just the way Domino's need them. Domino's also can build bigger warehouse or distribution center to keep more stocks so it can reduce to cost from ordering and reduce labor cost on daily routine in the distribution center.
Domino's also have a system that automates much of the standard ordering and replenishment planning, instead of spending three-quarters of the week manually putting orders together. This helps the Domino's planners to focus more time and attention on making better strategic decisions. For instance, planner review previous data indentify exception and learn the accuracy from the prior week. Planners can skip unnecessary job and make direct adjustments with this. Then the order is transmitted to Domino's ERP system and on the next day after receiving the order confirmation, planner can simply repeat the process for freight orders. Domino's growing ranks of retail stores are being replenished with a 24-hour service guarantee, even during the heaviest promotion periods, while the network of compact distribution center operates at lean levels few companies can match. This system had gain Domino a lot of advantage on preserving better stocks level and maintaining it.
In the highly competitive pizza business, Domino's have to create various strategies to make sure itself comparable with other pizza company. With their long time experience on pizza business, they know that time take for the food arrive to customer door is crucial. Domino's Pizza introduced a 30 minutes delivery guarantees and free delivery idea. Domino's is the only pizza company that guarantees customer's order will arrive within 30 minutes with free delivery. If the order cannot make it within 30 minutes, then Domino's Pizza will give you a free Regular Pizza Voucher. When delivering pizza, Domino's use a special heat wave bags to keep the pizzas hot during transit. These deals have significantly attracted customer to consume at domino's pizza.
Domino's GPS (Great Pizza Service) Tracker
Domino also creates a unique service that call Domino' GPS Tracker. This GPS tracker had provides a step-by-step update on the status of customer order when customer is online order the pizza. Customer can login with username and password or customer's phone number to track the online order. The GPS tracker will shows seven steps throughout the food preparation and delivery process for give customers convenient. The seven steps of tracker are including Order placed, Preparing, Baking, Boxing, Packing, Ready for delivery and the last one is delivering. This GPS tracker can gain competitive advantage because this system makes the more customers friendly and convenient to customer.
Domino's Pizza is a great pizza company to be study. It had proved itself as a world leading pizza company as it has a lot of advantage against other pizza company. The competitive advantages are including Effective inventory management, Automation Benefits, Delivery Tactic and Domino's GPS (Great Pizza Service) Tracker. Domino's pizza has done a great job on satisfying customer needs and maintaining it pizza quality. However, through this assignment, we have learnt how Domino's Pizza gain competitive advantages compare to another pizza seller. This also will give us increase a lot of knowledge about the business logistics operations that we might face in the future.