Domino's India Logistics Management
<<Previous
EXHIBIT I
THE PIZZA HOTLINE
 | | | |
In April 2000, Domino's introduced a common toll-free number
in all the 16 cities it operated in. Said Bhatia, “If an
executive travels 15 days a month, he is hard pressed for time.
So his meals are usually quick affairs and chances are he'd call
for a pizza.” That's where the service, which had been branded
as the Hunger Helpline, would come in handy. But once the
service was put into operation, local residents also started
using it. In fact, at some outlets, a majority of the calls were
routed through the Helpline. Operated through MTNL's toll-free
1-600 service, the service was manned by Easy Call, which set up
the 20-person call center in west Delhi's Janakpuri locality.
Domino's officials felt that the helpline would ultimately
become a source of valuable consumer data. Said Bhatia, “We plan
to become a micro-managed home retailer through customization.
So at the back end, this data is tremendously important.” The
way it worked seemed simple: each time a customer called, his
location was identified and the order was transferred to the
nearest Domino's outlet, which then took on the task of
delivering the order 30 minutes. |
Source: Businessworld, June 12, 2000.
EXHIBIT II
DOMINO'S WORLDWIDE REVENUES
Year |
Worldwide Sales in US$ billion
|
1990 |
2.6 |
1993 |
2.4 |
1994 |
2.5 |
1999 |
3.36 |
2000 |
3.54 |
Source: www.dominos.com
EXHIBIT III
MCDONALD'SUPPLY CHAIN
 | | | |
In India, McDonald's chose Mumbai-based Radhakrishna
Foodland Private Limited (RFPL) as a distribution agent which acted as a hub
for all its vendors. The iceberg lettuce from Ooty, the mutton patties from
Hyderabad or the sesame seeds buns from Punjab were all brought to RFPL's
distribution centre (cold storage) in its refrigerated vans. RFPL then
stored the products in controlled conditions in Mumbai and New Delhi, and
supplied them to McDonald's outlets on a daily basis.
By transporting the semi-finished products at a particular temperature, the
Cold Chain[5] ensured freshness and adequate moisture content in the food. This
temperature was maintained inside the storage chamber of the specially-made
trucks throughout the journey. Drivers were instructed specifically not to
switch off the chilling system to save electricity even in case of traffic
jams.
McDonald's built another cold storage with equipment worth about Rs.7.5
million[6] in Delhi in 1998. RFPL was responsible for McDonald's inventory
management. It had to anticipate future requirements and contingencies and
plan for the optimum utilization of the refrigerated vehicles.
There were 30 suppliers across the country. Trikaya Agriculture supplied
iceberg lettuce, Vista Processed Foods Ltd. supplied chicken and vegetables,
Dynamix Dairy supplied cheese, Amrit Food supplied milk and milk products,
and Ramakrishna Foodland acted as the distribution centre for Delhi and
Mumbai. The restaurants were not supposed to stock inventory for more than
three days.
This required round-the-clock monitoring of pick-ups and truck movements.
Using Hazard Analysis Critical Control Point (HACCP)[7], McDonald's had set
standards for all of its processing plants and its outlets. Since most of
the items were perishable, these standards covered the entire delivery
schedules. For in-city delivery, the truck was monitored from the time it
left the distribution centre till it reached the restaurant.
The products were transported from the suppliers'end to the distribution
centre in refrigerated and insulated vehicles. RFPL was also responsible for
cleanliness (including the personal hygiene of the drivers), and packing and
temperature control of the food (digital probes were inserted into items
selected at random) it transported. There were data logs to track the
movement of each batch. This meant that in case of a complaint from a
restaurant, the batch from which the food item came, could be identified,
isolated, and dumped.
McDonald's insisted on standardization by its suppliers. Vista Processed
Foods & Kitran Foods, which supplied pies, nuggets, vegetable, and chicken
patties, commissioned a new facility for the purpose in 1996, complete with
insulated panels, temperature control, and chill rooms.
|
Source: ICMR
EXHIBIT IV - MCDONALD'S-OUTSOURCING THE INGREDIENTS
[5] A cold chain refers to the warehousing, transportation and retailing of products under controlled temperatures. Such a chain is necessary for ice creams, frozen vegetables, processed meats, dairy and bakery products.
[6] In September 2002, Rs 48 equaled 1 US $.
[7] HACCP is a systematic approach to food safety that emphasizes on ensuring safety within rather than detection later through presence of microbiological data.
2010, ICMR (IBS Center for Management Research).All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted
in any form or by any means - electronic or mechanical, without permission.
To order copies, call +91- 8417- 236667 or write to ICMR,
Survey No. 156/157, Dontanapalli Village, Shankerpalli Mandal,
Ranga Reddy District,
Hyderabad-501504.
Andhra Pradesh, INDIA.
Mob: +91- 9640901313, Ph: +91- 8417- 236667,
Fax: +91- 8417- 236668
E-mail: info@icmrindia.org
Website: www.icmrindia.org
|