In the past year, Domino’s Pizza has added more than 1,000 new restaurants, and sales seem to have surpassed those of top competitors like Pizza Hut. With such strong sales, the importance of savings in the supply chain is more important than ever.
New Supply Chain Direction
It has been more than a decade since Domino’s last opened a new supply chain center. However, in a recent earnings call, CEO Richard Allison announced plans to build two new supply chains over the next two years.
In addition to building new supply chain centers, Domino’s also plans to invest in enhancing capacity in its current centers. CFO Jeffrey Lawrence said Domino’s has raised its gross capital spending guidance by at least $20 million, to an estimated $115 to $120 million for the full year of 2018.
This course of action is a direct response to the 50% growth from the U.S. market alone. Allison also stated that Domino’s 10-year plan includes reaching 8,000 store locations. With more growth to come, it is vital to ensure that the supply chain process is fully integrated with other business tools, functional without any hiccups, and optimized to save time and money based on accurate forecasts.
“We are now at a point where you start to get inefficiencies and diseconomies of scale in some of these centers when you get capacity up past a certain point,” Allison told investors.
Supply Chain Processes
At Domino’s, supply chain centers acts as warehouses, distribution centers, and kitchens. Ensuring these parts work as harmoniously and efficiently as possible is a challenge that only a sophisticated supply chain software system can meet. Key solutions that include — but are not limited to — advanced demand, supply, and capacity planning are essential to their success.
Vanguard Predictive Planning allows companies small and big to effectively grow and forecast supply and demand in any industry. It can even take businesses to the next step by offering an Integrated Business Planning (IBP) solution so true collaboration is achievable across all departments and forecasts. Contact Vanguard Software for more information.