Description
Domino’s Pizza Distribution Strategy
Case 04 Domino’s Pizza Distribution Strategy
SCM Case Presentation
Domino’s Pizza Distribution (DPD)
Mission Statement : “Exceptional People On A Mission To Be The Best Pizza Delivery Company In The World’
Domino’s Pizza Distribution Center Services
Food servic e
Equip. & Supply (E&S)
The goal of DPD is two-fold: 1) Streamline supply chain, eliminate non-value added activities 2) Reduce/eliminate logistics activities that stores need to perform
Distribution Structure
Pizza Outlet (4500)
Distribution Center (18)
Characteristics of Supply Chain
• • Few SKUs Known customers – Pizza Outlets:
? Accessible demand information
•
Complexity
? High Volume, High Velocity - 10000 deliveries per week ? Synchronous Processes ? Consistent product quality, standardization
Present Performance Metrics
• 10-15 hour order cycle time from initial order entry to dispatch • Actual delivery time ? 2 to 24 hours
• No order cut-offs even after the truck has left
• Currently ship 98% of their deliveries 100% correctly
Example of SC complexity
Information system solution provides a planning engine that allows this dynamic product planning
4 million pounds of dough produced and delivered to stores every week
Dough Distribution
Dough that is too young or too old shouldn’t be used
The dough is shipped keeping in mind the time for delivery
Shipment is initiated when the dough is young
Evolution of IT Systems in DPD
1980’s : UNIX based customized systems
Late 1990s : Strategic Shift towards ERP
Why ERP?
•
•
Integration of all systems
Work-Flow Driven, Real-time visibility
•
MIS system implementation
– – – – Optimized inventory Monitoring and co-ordination Dynamic delivery: Pizza dough according to age Sustainable competitive advantage
•
Distribution Requirements Planning (DRP) system
– – User sets inventory control parameters Calculate the time-phased inventory requirements
•
Improved Customer Service
Technology Choices PeopleSoft EssBase Cognos
• ERP • Pure Internet Architecture (PIA) • Distributed operations support • DBMS • Multidimensional platform for • Analytic applications support • Business Intelligence/ DSS • Cost Management System
9
Modular
Build around the software
No significant modifications
Dynamic Planning
View operations as a single unbroken supply chain
Optimize Distribution
Materials management
PeopleSoft
Spare parts and replacements
Quality control of purchasing
Improve supply chain practices
Reduce inventories Shorten cycle time Reduce idle time 10 Optimize setup and tear-down costs
Forecast to Cash Model
Supply chain
Re-Engineering Eliminates Departmental outlook Include Non-core processes Integrated view of supply chain activities
Phased Implementation
Phase I Implementation
Phase I Design
Phase II Design
Phase II Implementation
Phase 1 : Core transactional functionality, Basic DSS & Planning
Phase 2 : Greater functionality depth in processes to increase efficiency and effectiveness. Sophisticated integrated planning and advanced decision support
Implementation
• Communication of operational vision
– Communication programs of DPD
• Functional Training
– Training on new processes
• Involvement in Design & Implementation
– CFTs for design & involvement of all in implementation
• Advanced Systems End User Training • Technology Support
doc_249465581.pptx
Domino’s Pizza Distribution Strategy
Case 04 Domino’s Pizza Distribution Strategy
SCM Case Presentation
Domino’s Pizza Distribution (DPD)
Mission Statement : “Exceptional People On A Mission To Be The Best Pizza Delivery Company In The World’
Domino’s Pizza Distribution Center Services
Food servic e
Equip. & Supply (E&S)
The goal of DPD is two-fold: 1) Streamline supply chain, eliminate non-value added activities 2) Reduce/eliminate logistics activities that stores need to perform
Distribution Structure
Pizza Outlet (4500)
Distribution Center (18)
Characteristics of Supply Chain
• • Few SKUs Known customers – Pizza Outlets:
? Accessible demand information
•
Complexity
? High Volume, High Velocity - 10000 deliveries per week ? Synchronous Processes ? Consistent product quality, standardization
Present Performance Metrics
• 10-15 hour order cycle time from initial order entry to dispatch • Actual delivery time ? 2 to 24 hours
• No order cut-offs even after the truck has left
• Currently ship 98% of their deliveries 100% correctly
Example of SC complexity
Information system solution provides a planning engine that allows this dynamic product planning
4 million pounds of dough produced and delivered to stores every week
Dough Distribution
Dough that is too young or too old shouldn’t be used
The dough is shipped keeping in mind the time for delivery
Shipment is initiated when the dough is young
Evolution of IT Systems in DPD
1980’s : UNIX based customized systems
Late 1990s : Strategic Shift towards ERP
Why ERP?
•
•
Integration of all systems
Work-Flow Driven, Real-time visibility
•
MIS system implementation
– – – – Optimized inventory Monitoring and co-ordination Dynamic delivery: Pizza dough according to age Sustainable competitive advantage
•
Distribution Requirements Planning (DRP) system
– – User sets inventory control parameters Calculate the time-phased inventory requirements
•
Improved Customer Service
Technology Choices PeopleSoft EssBase Cognos
• ERP • Pure Internet Architecture (PIA) • Distributed operations support • DBMS • Multidimensional platform for • Analytic applications support • Business Intelligence/ DSS • Cost Management System
9
Modular
Build around the software
No significant modifications
Dynamic Planning
View operations as a single unbroken supply chain
Optimize Distribution
Materials management
PeopleSoft
Spare parts and replacements
Quality control of purchasing
Improve supply chain practices
Reduce inventories Shorten cycle time Reduce idle time 10 Optimize setup and tear-down costs
Forecast to Cash Model
Supply chain
Re-Engineering Eliminates Departmental outlook Include Non-core processes Integrated view of supply chain activities
Phased Implementation
Phase I Implementation
Phase I Design
Phase II Design
Phase II Implementation
Phase 1 : Core transactional functionality, Basic DSS & Planning
Phase 2 : Greater functionality depth in processes to increase efficiency and effectiveness. Sophisticated integrated planning and advanced decision support
Implementation
• Communication of operational vision
– Communication programs of DPD
• Functional Training
– Training on new processes
• Involvement in Design & Implementation
– CFTs for design & involvement of all in implementation
• Advanced Systems End User Training • Technology Support
doc_249465581.pptx