Case Study – Domino’s

Assignment 2: Case Study – Domino’s

Jordan Skelton

Professor Brizek

MGMT 330-OL: Operations Management

02/11/2018

Supply chain management runs through relationships between companies and suppliers. Company A, works with supplier A, to gain the materials needed so company A can produce its own goods and or services. Effective managing of the supply chain aids companies in lowering costs, becoming more effective with processing, and maximizing profits. The strongest companies make providing to the customers wants and needs fast and easy, this is done by removing any concept of waste in operations. Domino’s has a strong supply chain; the company was effective in the way it leveraged its supply chain locally, which in turn helped increase the effectiveness of its overall operations.

Describe how Domino's supply chain creates value to provide a competitive advantage.

        Domino’s Pizza company is a giant organization in the quick food service world. A large part of its success is down to the company’s strong supply chain system, all of Domino’s franchises are the same in this aspect. This is important to the Domino’s Pizza company, that each and every store that holds the company name works the same. Previously in 2011, each and every Domino’s franchise owner, had the rights to get their ingredients and supplies for menu selections through local suppliers, as long as they received the go ahead from Domino’s official office. Following 2011, all most all of the franchises took on the supply chain of the organization. Roughly there are about 240 items and products that make up the menu of ingredients for Domino’s, these include: cheeses, dough, meats and many other types of ingredients, and all of these are provided to over 4900 Domino’s stores. Domino’s takes maximum responsibility for customer satisfaction and ensures that each and every customer is provided with the same quality of food and products. Domino’s holds a high level of quality in all of its departments, from the quality of food, to the quality of toilet paper used in its stores. This high level of class keeps the corporate image high across the board for the company.

        Domino’s biggest edge against its competitors was its efficient and consistent supply chain of operations. The company holds 19 facilities in 15 states across America, for a main purpose of storage of main menu related items, and to aid in minimalizing costs that storage brings. Also, the companies centralized resources takes away complex issues that come with each store, for example, having to barter with multiple suppliers for the best deals. This also helps prevent costs from rising to high and allows the company to get its suppliers at low market prices.