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Raw Produc Handling Need Disccussion

Raw Produc Handling Need Disccussion

Question Description

Requirements:

Write a reply minimum of 150 words for each discussion1 and discussion 2

Discussion 1:

Domino’s which is also known as Domino’s Pizza, Inc. is the American largest pizza network with global branches. Dominos utilizes a vertically consolidated technique delivering and passing most of the crude materials to the stores which allow Domino’s to utilize the purchasing power of thousands of associations asserted and enhanced stores keeping food costs down. The crude materials collection is a huge piece of Domino’s plan of action as they are the creators of their dough. This allows Domino’s to cut down their expenses by ensuring quality. Crude materials are gathered from local suppliers and utilize cold trucks to deliver the dough. This way Domino’s reduced its overall cost for making all the ingredients thereby reducing the manufacturing cost.

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The supply chain inventory network is the main piece of Domino’s growth. A colossal association, for example, Domino’s depends on its store network the executives to adequately deal with the assets and flawlessly conveys the correct amount of the item to the correct area at the right time without disappointment with the least expense associated with the progress. It will be hard for the association to convey its guarantees if there is an ended inventory of fixings and pained to convey situations that can essentially affect the association’s image esteem. As another option, Domino’s uses the idea of center point and-talked which achieves centralization. Rather than relating various divisions all attempting at one idea, the center makes the progressive system of control where it is not difficult to execute the concentrated orders. Also, it will improve the tasks between their key regions, for example, conveying administration, creation climate, distribution center working group, support team, and client care climate.

Discussion 2:

Most of the ingredients needed for pizza could be acquired from local suppliers located in close proximity to the Domino’s stores in a given city, eliminating the extensive supply chain network that Domino’s utilizes with their hub-and-spoke approach. What are the likely reasons that Domino’s chooses to employ the supply chain strategy described in the video? Is it the best? Why or why not?

I feel Domino’s has an excellent strategy for managing its raw product’s needs for pizza. I agree with their hub and spoke system of making dough in bulk quantities at Dough Factory. It maintains consistency and reduces the production price for dough as they buy raw material for making dough in bulk quantities. It ensures consistency and, in a way, reduces the cost of making dough significantly for a franchise. For example, if Domino’s installs dough-making machines at every franchise, then the production cost increases as the franchise would initially have to invest in the equipment. The raw material supply cost would also increase as it would no more be supplied in bulk quantity. The cost of dough-making machines would have been expensive, and even though consistency was maintained, it would not have been a safe consuming asset for the franchise. If this strategy was so good, then why not supply complete pizzas from the factories? The answer I feel should be that the customers can buy readymade frozen pizzas from Walmart or Target, but the essence of having a freshly made pizza is more convincing.

Subway is another excellent example of a hub-and-spoke strategy. Subway delivers bread to the stores in the form of breadsticks. They supply raw white and brown breadsticks, which are then topped with the toppings in the franchise. As the bread-making facilities are massive, the operation is mostly automated, ensuring lesser interaction with human hands and maintaining the bread’s pristine quality. Overall, the hub-and-spoke is an efficient, cost and time-saving strategy.


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