Themes: Supply Chain Management
Period : 1999 - 2003
Organization : Domino's
Pub Date : 2003
Countries : India
Industry : Food, Beverage and Tobacco
Table I
Outsourcing the Ingredients
Wheat |
Jalandhar (Punjab) |
Cheese |
Karnal, Haryana |
Tomatoes |
Bhubaneshwar, Orissa |
Spice |
South India |
Baby Corn |
Nepal |
Exotic Vegetables |
Sri Lanka |
Pepperoni |
Australia |
Jalapeno |
Spain |
Source: Businessworld, June 12, 2000.
Domino's hoped to lower its prices by saving from the logistics model and third-party transportation. In April 2000, Domino's announced a cut in pizza prices to Rs 49. Domino's was also targeting large corporate offices, railway stations, cinema halls and university campuses for faster growth. It had already established an outlet at Infosys
corporate office in Bangalore and at three cinema halls - PVR in Delhi, Rex in Bangalore and New Empire in Kolkata.
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1. Why did Domino's decide to revamp its supply chain operations in India? How was the new logistics model superior than the old model? Briefly explain the benefits Domino's derived after the revamp.
2. Analysts felt that Domino's took a cue from McDonald's supply chain model in India. Compare the supply chain models of both companies. Why do you think Domino's model was considered more complicated?
Exhibit I: The Pizza Hotline
Exhibit II: Domino's Worldwide Revenues
Exhibit III: Mcdonald' Supply Chain
Exhibit IV: Mcdonald's - Outsourcing the Ingredients