- 1. 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
company. 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.
2. MARKET SHARE 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 business. 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? 3. 4. Packaging Process 5.
The Pizza Delivery Process- From A Franchisee Outlet To The
Customer's Doorstep 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. 4. 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 scale. 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 procurement strategy. 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 Lanka. 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) Wheat Jalandhar (Punjab) Cheese
Karnal, Haryana Tomatoes Bhubaneshwar, Orissa Spice South India 5.
Baby Corn Nepal Exotic Vegetables Sri Lanka Pepperoni Australia
Jalapeno Spain MOVEMENT OF RAW MATERIALS - NORTHERN COMMISSARY
(DELHI) 6. PROCUREMENT & SUPPLY OF RAW MATERIALS: WESTERN
COMMISSARY 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 Ghodbunder
Road Versave, Thane, Maharashtra 401104 LIST OF THE MAJOR RAW
MATERIALS PROCURED: Item Name Place Of Procurement 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 7.
*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
FOLLOWING MANNER: Mode Of Distribution-Trucks No. Of Branches
Covered By The Western Commissary-36 Total No. Of Trucks Used-5
Location No. Of Branches Frequency Of Distribution Transportation
Mode No. Of vehicles used Mumbai 23 1 Time/ 2days Refrigerated
Trucks 2 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 COMMISSORY (MUMBAI) AMRITSAR NEW BOMBAY PUNE
MUMBAI AHMEDABAD GOA 8. Western Commissary (Mumbai) Delivery
destination Supply Center DELIVERY TRUCKS 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 goods. The major warehousing
facilities belonging to Domino's Pizza India Ltd. are located at:
9. Delhi Mumbai Bangalore 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 Pellets 10. 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: Flour Yeast Oil + Gluten + Salts Calcium Propio nate
Emulsifying Agent DOUGH PREPERATION PROCESS 11. 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 Prabhadevi
Mumbai-400025 Store Manager- Mr. Azim Siddiqui Frequency Of
Delivery 1 time/day Delivery Timings: 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: Folding Batching Finished Dough Kneading Sheeting &
Cutting Counting Finished Prod PackagingTo The Warehouse/ Transport
Facility OPERATION-POST DOUGH PREPERATION Cooling 12. Dough Spices
Cheese Vegetables Chicken 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 Vegetables Cheese
Pre-Heated Oven Dough Certain spices Order Placement By A Customer
13. 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? 14. GENERIC PROCESS FLOWCHART OF PIZZA
PREPARATION: PACKAGING OF THE PIZZA - MATERIAL & PROPERTIES OF
THE PACKING MATERIAL Order Placement MAKE LINE KITCHEN AREA Dough
Cutting Arrangement Of Topping & Cheese Baking Finished Pizza
Cutting The Pizza Into Equal Slices Packing & Sealing CUT TABLE
OUTSTAND FINISHED PRODUCT RECEPTION DESK 15. 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 16. 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 OPERATIONS? 17. The entire operation from
taking the customer order to packing a freshly made pizza runs on a
11 minute schedule ACTIVITY TIME TAKEN (in minutes) Order Placement
1 Pizza Making 1 Oven-Time 6 Quality Check 1 Packing 1 Sealing
& Exit 2 DELIVERY PROCESS: The Dominos Pizza Ltd. is known for
its 30-minute home delivery model. The company proudly calls itself
"The Pizza Delivery Experts" Total Time Taken 11 Minutes 18. 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. WORLIDADAR PRABHADEVI