Value Chain Analysis of Domino’s

Domino’s is a retail pizza chain American multinational company. Dominick DeVarti, Tom Monaghan, and James Monaghan founded the retail pizza chain brand in 1960. Today, we’ll discuss the value chain analysis of Domino’s supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Ingredients and raw supplies of Domino’s Pizza

• Beef
• RS/RF pork
• Water
• Soybean oil
• Pepperoni
• Garlic spices
• Sugal
• Salt
• Tomato paste and puree
• Citric acid
• Vegetable oil

The business industry of Domino’s Pizza

• Franchising
• Foodservice
• Retail chain
• Pizza

Material Sourcing regions of Domino’s Pizza

• Middle East
• Africa
• Asia Pacific
• Europe
• Latin America
• Caribbean
• North America

Competitors of Domino’s Pizza

• Zume Pizza
• Papa John’s Pizza
• Pizza Hut
• Little Caesar’s
• Burger King
• McDonald’s
• Starbucks

The Value chain analysis of Domino’s supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s supply chain analysis of Domino’s value chain analysis company example as follows;

Value Chain Analysis of Domino’s

Let’s discuss the primary and supporting activities involved in the process of the value chain analysis of Domino’s supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of Domino’s

Some of the five main primary activities in the value chain analysis of Domino’s supply chain analysis are as follows;

Inbound Logistics of Domino’s Pizza

I-Suppliers Network

Pizza boxes, tomato sauce, cheese, and flour are the main ingredients of Domino’s Pizza. The company deals with a large number of suppliers worldwide and sends the raw supplies to the distribution centers to check and evaluate the raw supplies. The pizza brand has divided its suppliers into four categories and they’re as follows;

• Domino’s thin crust bread producing distribution centers
• Ardent mills – 8 million pounds of flour weekly
• Paradise Tomato – provides 2.5 million pounds of tomato sauce weekly
• Leprino’s food – 6 million pounds of cheese weekly in the US

II-Centralized Supply chain

Domino’s Pizza follows a centralized supply chain network. The pizza brand sources raw ingredients and supplies from multiple suppliers; the company receives them at its distribution centers and then sends them to its franchise stores.

III-Relationship with Suppliers

Domino’s Pizza has established a very good professional relationship with its four major suppliers. In fact, the company has recognized their efforts by awarding them Suppliers of the Year awards. It allows the company to ensure a smooth supply of raw supplies and food ingredients and maintains an effective relationship with its suppliers.

Outbound Logistics of Domino’s

I-Logistics Channel

Domino’s Pizza creates dough from wheat flour in its distribution centers and then ships it to the retail stores through trucks. The company makes sure to maintain the temperature of 18 degrees Celsius of its special distribution trucks for frozen food items. The transport network would deliver the food ingredients from the distribution centers to the destinations of franchise stores across the US and worldwide.

Operations of Domino’s

I-Distribution Centers

Domino’s Pizza has established a network of 18 distribution centers across the US; the company has built them in the precise where transportation to the retail stores is convenient. They play a key role in the company’s supply chain network by performing the following roles;

• Checking the quality of food ingredient supplies
• Creating dough from the wheat flour
• Storing dough, tomato sauce, and cheese
• Maintaining the temperature of the refrigeration area

Marketing & Sales of Domino’s

I-Media Channels

Domino’s Pizza employs multiple media channels; SMS, mobile applications, websites, TV, and billboards for the marketing and promotion of its pizza channels. The personalized marketing and promotional campaigns helped the company to approach the target customers and increase sales.

II-Retail Stores

Domino’s Pizza has established a network of roundabout 18,848 brand retail stores in various countries across the globe. The brand franchises receive goods and raw supplies from the distribution centers and prepare fresh pizzas for customers based on their demands. However, the company either serves pizza to customers at its retail franchise chain stores; or delivers it to the customers’ homes.

Services of Domino’s

I-Speedy Delivery

Domino’s Pizza advertises and makes sure to its customers that the company will deliver the pizza to the customers at their home address within 30 minutes. The objective of quick and speedy delivery is to satisfy the needs and demands of customers.

Supporting Activities of Domino’s

Some of the main supporting activities in the value chain analysis of Domino’s supply chain analysis are as follows;

Infrastructure of Domino’s

Domino’s Pizza has a well-established infrastructure in the form of distribution centers, a supply chain network, transportation and distribution trucks, and an online platform. The online and physical infrastructure helps the company to ensure that the pizza brand performs all of its functions and operations smoothly without any disruptions.

HRM of Domino’s

Domino’s Pizza has employed approximately 1400 employees to manage global operations. The human resources management department of the company plays a key in building a diverse workforce; boosting the morale of employees, and making sure that they’re performing at the optimum level. Ultimately, it improves the customer satisfaction level.

Technological Development of Domino’s

Domino’s Pizza invests a significant amount of capital resources on the latest technological equipment and tools at its production units and distributions. Investment in technological development makes sure to bring efficiency to the company’s operations. The efficient operations help the pizza company to avoid wastage of resources and save costs.

Procurement of Domino’s

Domino’s Pizza is highly cautious and careful about the ethical procurement of food ingredients and raw supplies. The pizza brands ensures that the company’s suppliers are engaging in ethical practices and not employing child and forced labor in their farms and factories. 

Conclusion: Domino’s Value Chain Analysis Example Company | Application of Value Chain Analysis Process 

After an in-depth study of the value chain analysis of Domino’s Pizza; we have realized that Domino’s Pizza is the world’s leading retail pizza chain brand. If you are learning about Domino’s value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.