Domino's India Logistics Management

FIGURE I
DOMINO'S LOGISTICS MODEL

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.

Domino's also classified its outlets into Super stores, Express stores and Regular stores. Super stores were those, which generated high traffic and therefore had more counters than the regular outlets (the outlet in Churchgate, Mumbai). Express stores were those where people were expected to walk in and order rather than ask for home delivery (university campuses, offices or cinema halls).

QUESTIONS FOR DISCUSSION:

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?

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