26-12-2012, 05:30 PM
LOGISTICS AND SUPPLY CHAIN MANAGEMENT OF PIZZA HUT
LOGISTICS AND SUPPLY.pptx (Size: 1.08 MB / Downloads: 74)
INTRODUCTION
Pizza Hut is one of the flagship brands of Yum! Restaurants International, which also has KFC, Taco Bell, A&W and Long John Silver’s under its umbrella.
It is the world’s largest pizza chain with over 12,500 restaurants across 91 countries.
The first Indian outlet was opened in June 1996 in Bangalore.
In India, Pizza Hut has 139 restaurants across 36 cities.
LOGISTICS AND SUPPLY CHAIN MANAGEMENT OF PIZZA HUT
Supply chain management is the factor that differentiates the winners and the losers in this business.
The cross-functional and logistical drivers of supply chain performance are:
Facilities
Inventory
Transportation
Information
Sourcing
FACILITIES
Facilities are the actual physical locations in the supply chain network where product is stored, assembled or fabricated.
The two major types of facilities are Production sites and Storage sites.
Commissionaires in Noida, Mumbai, Kolkata and Bangalore.
INVENTORY
The base is prepared in the commissionaires and then transported to different retail outlets.
The outlets keep the inventory stock of only three days because it is a perishable good.
Hence, the inventory stock cost is reduced.
As only the base is transferred to the store, in case of any particular item demand is increased, it does not create any problem.
TRANSPORTATION
They use the refrigerated trucks in which the base is kept and there is controlled temperature.
There are 110 trucks to supply the bases across India.
There is also a vacant space in which extra base is kept to fill the demand of a particular store.
The company will not incur any additional transportation costs as the counters are along the highway or on the truck’s route.
INFORMATION
There was no proper medium of coordination between the suppliers and the out let managers.
This all happened because of customer database was not maintained and outlet manager could not recall the need of customer.
The cost got increased and they were not able to come across this problem in the absence of proper information system.
Therefore, commissionaires were created.
SOURCING
The Pepperoni and Mozzarella a cheese is imported from Australia and Spain respectively.
To compensate an increased cost, they maintain a local supply chain to reduce the cost like vegetables, wheat, tomatoes.
This provides the world class facility and taste by importing its main ingredients from Spain and Australia but other ingredients from local vendors.
CONCLUSION:
“It is the time and money that lets you enter the race but it is the services that you provide wins you the race.”