LOGISTICS AND SUPPLY CHAIN MANAGEMENT OF PIZZA HUT

GROUP MEMBERS
MITUL VORA(Finance) NAITIK SHAH(Finance)

ROLL NO
45 91

ASHIT DOSHI(Finance)
MITHIL SHAH(Finance) PRATIK DOTIA(Marketing)

55
28 57

INTRODUCTION

INTRODUCTION

Pizza Hut is one of the flagship brands of Yum! Restaurants International, which also has KFC, Taco Bell, A&W and Long John Silvers under its umbrella. It is the worlds 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.

THE INGREDIENTS
ITEMS Wheat Cheese Tomato Baby Corn PLACE Jalandhar (Punjab) Karnal, Haryana Bhubaneshwar, Orissa Nepal

Pepperoni
Mozzarella cheese

Australia
Spain

Pizza Hut is known for quality, innovation and category leadership. So they follow the operational practice known as C.H.A.M.P.S. C: Cleanliness H: Hospitality A: Accuracy M: Maintenance P: Product Quality S: Speed

COMPONENTS OF C.H.A.M.P.S.
1. Orientation Training

2. CHAMPS Check

3. Celebrating CHAMPIONS

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 trucks 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.

STRENGTH
1. Market Leader 2. Innovative Range of Pizzas Under One Roof. 3. ISO Certified 4. Free Home delivery

5. Full Service Restaurant.

WEAKNESS

1. Higher Overhead Costs.

2.Pizza costly as compared to competitors.

3.More focused on western taste.

OPPORTUNITIES
1. Pizza Hut can come up with new products considering the Indian taste .

THREATS
1. Existing competitors like Dominos Pizza, McDonalds Etc. 2. Availability of substitutes.

Comparison

Pizza Hut Think Global act Local First to introduce localized menu.

Dominos Think local act regional First to offer country wide Hunger helpline.

RECOMENDATIONS
Tie up with local and popular brands. To develop local supply chain.

To customize product offering.

To open outlets in Academic area.

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.

Thank You