Implementing Global Supply Chains in Emerging Market

Discuss about the Implementing Global Supply Chains in Emerging Market.

Domino Pizza Enterprise Limited in Australia is a large pizza chain business with a significant presence through its franchisees in the world. The business is a leading pizza brand with an advanced digital retailing system and online ordering system which boosts the business. The firm offers several products such as Chicken pizza, the pizza mogul, traditional pizzas, as well as other drinks and snacks in its business. The company captures its clients through its well-established supply chain. The paper examines the supply chain of the firm and analyzes its adaptability to the success of the enterprise.

The fundamental question that guides the creation and implementation of Domino’s supply chain is ‘where is my pizza?’ and thus leads to the several supply avenues to meet the buyer's request. The supply chain of the firm adopts a make-to-stock approach that promotes its lean production counting on the just in time stock management and control of inventories (Domino's Pizza, Inc., 2015). The firm has a centralized supply chain model that is fully owned by a subsidiary responsible for providing the dough and basic raw materials which complete the primary production. The firm sends the supplies to the master franchises which places the firm at advantageous points.

Centralization allows for leverage in the buying power thus giving it the power to negotiate the best choice for the purchases. Besides, it assures a consistent and quality product to the market thus boosting the brand name of the corporation (Taylor, 2016). At the same time, it gives the firm the ability to use its considerable buying power to create better costs in cases where inflation affects the business thus a proper strategy in bargaining with the suppliers.  

Central Commissary

The central commissary is an essential part of the business of Domino. The supply point receives commodities from farmers and other suppliers including the dough for making the variety of products for the pizza business. The firm sources its raw materials such as wheat, baby corn, tomatoes, and spices which are sent to the commissaries in refrigerated trucks (Domino's Pizza, Inc 2015). The commissaries exist in diverse locations for easy and timely delivery. Besides, it receives and puts in order ingredients to be used by the franchises in producing the ultimate product for the market. The dough section termed as the domino commissary sends the raw materials to the firm according to the projected demands which align with the daily orders made.

Notably, the raw materials including the dough balls and other ingredients are sent to the outlets in refrigerated trucks to preserve their purity and arrival in full condition for further processing. Afterward, the workers in the firm process the meals for the franchises awaiting distribution. Meanwhile, the online clients placing orders can track the progress of their orders by giving a tracking system that informs the clients on the progress of their order until it gets into the supply chain delivery department (Rushton, Croucher & Baker, 2014).

The technology informs the ordering system where it indicates the pizza order placed step, preparation, baking, quality check, and the last step when it is sent to the delivery system. The technology increases the trust and communication with clients allowing for tailor-made products according to the demands of the clients. The customers can give their feedback directly to the firm thus making the supply chain efficient as it improves each time it delivers to the consumers (Fredendall & Hill, 2016). Besides, the firm has replenishment software that communicates with the producers to ensure enough supply of commodities in the inventory. The system works by allowing the company’s procurement to seek for more inputs from the producers which are transported early through forecasting to the primary business for processing. The online orders also use a similar module to order where such replenishment activities are done.

Franchise Locations

The franchisees receive the supplies from the commissary which are ordered depending on the demands and orders placed by the clients. The firm ensures a timely delivery of products in the required proportions according to the consumers. It is important to deliver right on time. The trucks transporting raw materials have been transformed to carry a variety of raw materials according to the demand as opposed to delivering a bulk of similar materials which does not match the demand scenario (Domino's Pizza, Inc. 2015).

The firm has adopted the ‘matched receipts to demand module’ that has boosted its supply chain due to the presence of diverse products in place to reduce the time taken in delivering the finished products to the consumers. The store has employees who prepare the pizza dough brought in from the commissary. Topping and seasoning occur at this stage where the products are made depending on the instructions placed for orders. The tailor-made products are then packed in well-labeled packaging that displays the product and the predetermined location. 

Besides, the firm uses a forecasting mechanism in placing orders to its suppliers thus ensuring a timely delivery of products to its parent production centers. The distribution from the commissary to the subsequent outlets occurs according to the demands and is transported by the vehicles waiting to be loaded and unloaded at various points (Taylor, 2016). Every franchise location receives orders from customers both in the online and the on-site stores with their clients making orders. The outlets prepare the products and pack them ready for distribution to the clients as per the demands and orders placed by clients (Taylor, 2016). At this point, the distribution channels vary depending on the distance involved for each customer.

Distribution from Domino Stores

The domino stores are centers that process the final products tailor-made according to the demands of the clients. Every client understands and follows the process of product formulation and distribution which is followed through the tracker system. After the preparation, the products are well labeled according to the destination and the name of the client for easy identification and disbursement in the routes. The department ensures the products are packed well for distribution where proper labeling is done and products arranged according to the routes (Fawcett, Ellram & Ogden, 2014). The firm places a matching number of human resources to the demands and employs others on a part-time basis to assist meet the demands of the market.

Besides, the stores pack products in thermal delivery bags and pizza boxes which illustrate professionalism in its business. The transport routes are selected according to the demands placed by the clients that have to be sorted keenly with products destined for one location determined to allow one lorry carry several products as opposed to placing order haphazardly (Stadtler, 2015). The strategy is efficient towards saving fuel for the firm and the overall operating costs. Moreover, the lorries are well branded to allow for easy identification as well as acts as a marketing strategy for its brand recognition. 

The vehicles used for transportation at this stage are well maintained in clean condition and aeration to enable the products to remain fresh and in shape during and after the distribution. Leaving the products in a good state guarantees superior products that match the expectations of the buyer (Dwivedi & IGI, 2016). The firm uses its suppliers including the use of motorcycles and vehicles depending on the distance and locality of the clients. The trucks distribute the products to their various collection points where the motorbikes assist in distributing to the estates where the trucks cannot access.

 Besides, clients are notified of the product progress by call and also through the tracking system that enables them to pick the products on time to reduce delays in the supply chain (Wisner, Tan & Leong, 2014). The firm provides a real-time delivery of the products using its numerous resources across the places where its outlets exist. Consequently, the firm manages to reach its clients at their door steps who meet happy delivery persons proud to bring the exciting products.

Conclusion

The supply chain utilizes the major concepts of supply chain practices. The accountability in the supply chain promotes a proper customer relationship by giving the clients the chance to track, feedback, and have products tailor-made to their preferences. Besides, it ensures proper storage and utilization of materials where the products arrive at the stores in good condition due to proper refrigeration. At the same time, it retains a proper strategic partnership with its suppliers by promising a continuous demand for their supply and ordering in time to avoid inconveniences.

Besides, it promotes communication through the tracking and feedback where clients can order and make suggestions in the process of production (Stadtler, 2015). The open inventory system assists the various stages of supply in ascertaining the level of demand and making necessary adjustments toward creating a stable supply for its consumers. Therefore, the firm’s supply chain encourages a lean production and efficient use of materials which remain of high quality.    

Domino’s supply chain is evolving towards improving efficiency for its customers as well as profits for its business. The firm embraces the use of technology in its supply chain which encourages a timely request for commodities as well as delivery. Besides, it allows for clients to track their products on transit where the truck location can be determined thus drawing convenience for the clients. All the stages in the supply chain of the firm conform to the business practices concerning a supply chain. The company should embrace a continuous improvement on its supply chain system to better its quality and offering to the customers in line with the competitive nature of the industry.

References

Stadtler, H. (2015). Supply chain management: An overview. In Supply chain management and advanced planning (pp. 3-28). Springer Berlin Heidelberg.

Fawcett, S. E., Ellram, L. M., & Ogden, J. A. (2014). Supply chain management: from vision to implementation. London: Pearson.

Rushton, A., Croucher, P., & Baker, P. (2014). The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers.

Fredendall, L. D., & Hill, E. (2016). Basics of supply chain management. CRC Press.

Wisner, J. D., Tan, K. C., & Leong, G. K. (2014). Principles of supply chain management: A balanced approach. Cengage Learning.

Domino's Pizza, Inc. SWOT Analysis. (2015). Domino's Pizza, Inc. SWOT Analysis, 1-9.

Taylor, B. (2016). How Domino's Pizza Reinvented Itself. Harvard Business Review Digital Articles, 2-4.

Dwivedi, A. N., & IGI, G. (2016). Innovative Solutions for Implementing Global Supply Chains in Emerging Markets. Hershey, Pennsylvania [701 E. Chocolate Avenue, Hershey, PA 17033, USA]: Business Science Reference.

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