anuj pizzae pizza hutint presentation

8/9/2019 ANUJ PIZZAe Pizza Hutint Presentation

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Assignment on

supply chain management


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Pizza Hut is one of the flagship brands of Yum! Restaurant Int. which also has

KFC, Taco Bell, A&W and Long John Silvers under its umbrella. It is the worlds

largest pizza chain with over 12,500restaurants across 91 countries. Pizza Hut was

started in 1958,by two brothers Frank and Dan Carney in Wichita, Kansas. They

had the idea to open a pizza parlor. They borrowed $600 from their mother, and

opened the very first Pizza Hut. In 1959, the first franchise unit opened in Topeka,

Kansas. Almost ten years later, Pizza Hut was serving one million customers a

week in their 310 locations. In 1970, Pizza Hut was put on the New York Stock

Exchange under the ticker symbol PIZ. In 1986, Pizza Hut introduced delivery

service, something no other restaurant was doing. By the 1990's Pizza Hut sales had

reached $4 billion worldwide. In 1998, Pizza Hut celebrated their 40th anniversary,

and launched their famous campaign "The Best Pizzas Under One Roof." In 1996,Pizza Hut sales in the United States were over $5 million. The first Indian outlet

was opened in June 1996 in Bangalore. In India, Pizza Hut has 139 restaurants

across 36 cities. Pizza Hut has been voted the best family restaurant for the

second year running at the 2007 Tommys Parent Friendly Awards. "Pizza Hut is

known for quality, innovation and category leadership.


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Pizza Hut entered India in 1996, and opened its firstrestaurant in Bangalore. Since then it has captured adominant and significant share of the pizza market and hasmaintained an impressive growth rate of over40 per cent per

annum. Pizza Hut now has 95 outlets across 24 cities inIndia; and employed nearly 4,000people by end of 2004.Yum! has invested about US$ 25 million in India so far; thisis over and above investments made by franchisees. Yum!Brands Inc is the owner of the Pizza Hut chain worldwide.A Fortune 300 company, Yum! Brands owns Kentucky

Fried Chicken, Pizza Hut, Taco Bell, A&W and Long JohnSilvers restaurants worldwide. Yum! generated more thanUS$ 25.9 billion in worldwide sales in the year 2003, andhas more than 33,000 restaurants in over 100 countries.


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C : Cleanliness

H : Hospitality

A : Accuracy

M : Maintenance

P : Product Quality

S : Speed

Pizza Hut strictly follow the norms to attain the quality product .They

have adopted the best operational practice to attain the customer

satisfaction. They are doing their operational practice under an umbrella of

C.H.A.M.P.S .So here comes the role of supply chain because if they want

to provide a quality product to their customer and on the other hand they

want to responsive as well the cost will definitely go high so to be efficient

enough they have to manage their supply chain.


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mozzarella cheese

pepperoni

sauce

base potato

vegetables

wheat

baby corn

spices


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Pizzas

Pastas

Soups and salads

Desserts


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ITEMS PLACE

Wheat Jalandhar( unjab)

Cheese Karnal, Haryana

Tomatoes Bhubaneshwar, Orissa

Spice South India

Baby corn Nepal

epperoni Australia

mozzarella cheese Spain


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"Supply chain management is the factor that

differentiates the winners and the losers in

this bu

siness," drivers play an important rolein terms of the responsiveness and efficiency.

We must examine the cross-functional and

logistical drivers of supply chain performance:

facilities, inventory, transportation, information, sourcing, and pricing.


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It encompasses all raw materials, work inprogress and finished goods with in the supplychain. As the base is prepared in the

commissionaires and then transported to differentretail outlets and the outlets keep the inventorystock of only three days because it is the

perishable good so the inventory stock cost is

reduced .As only the base is transferred to thestore so in case of any particular item demand isincreased it do not creates any problem.


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Transportation:

To deliver the base from the commissionery todifferent outlets the use the refrigerated trucksin which the base is kept and there is a controlof temperature which they set according to the

distance between the commisionary and theoutlets. There are 110 trucks to supply the baseacross India. There is also a vacant space inwhich extra base is kept to fill the demand of a

particular store. The company will not incur anyadditional transportation costs so long as the

counters are along the highway or the truck'sroute. In this way they use their transportationand maintain their efficiency.


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Sourcing:

As we have seen above that the Pepporinemozzarella cheese is imported from Australiaand Spain respectively so it will take time anincreased the cost also so they have to manage

but on the other hand to compensate theincreased cost they maintain the local supplychain to reduce the cost like vegetables, wheat,tomatoes are imported from India .So they

provide the world class facility and taste my

importing its main ingredient from Spain andAustralia but other ingredients from localvendors.


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Pizzaand logistics?

It is wrong to conclude that running a pizza chain is easy by

looking its front-end operations. Compared to the complexities

involved in managing a supply chain, the promise of pizza

delivery within 30 minutes or offering it free is a child's playfor pizza chains. "Supply chain management is the factor that

differentiates the winners and the losers in this business,"

On the other hand, Pizza Corner imports all its potato

requirements from Canada. The other ma or imports for PizzaCorner are cheese and olive oil. Lately, the company has

started sourcing cheese from a Bangalore-based company.

For the Pizza Hut chain, cheese is imported from New

Zealand, while chicken and bread are sourced locally.


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ResponsivenessandEfficiency:

As we have seen that pizza hut open their outlet in bulkin a particular city so they are responsive enough andthey provide delivery within 30 minutes or offering itfree is also to increase theirresponsiveness it is

difficult to maintain such kind of responsivenessbecause it will incur extra margin and the profit marginwill decrease thats the main reason they open theiroutlet in bulk and if a particular customer order a pizzawhere pizza store is not available that store

immediately call the nearest pizza corner to deliver thatparticular order to be responsiveness and if a particularproduct is not available they use to do transferin andtransferout in which they take the product fromdifferent outlet.


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SupplychaindiagramofPizza

Hut:Pepsi ompany andremica bakes

auces

eat market

Vegetables

Ware houses

Dough

Filling

Topping

akes

ustomer(pizza hut)

Delivery service


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Valuepreposition:

Value proposition determines determinesadditional ways of adding value to your offerwithout affecting the price, so as to create a

greater worth for the customer. This is calledvalue proposition. The value chain analysismeans of increasing customer satisfaction andmanaging cost more effectively. This is asystematic approach to examining the

development of competitive advantage. Valuechain analysis is particularly useful tool forlooking at competitors, and identifying sources ofcompetitive advantage.


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PRESENTED -

ANUJ CHAUHAN (1101)

anuj pizzae pizza hutint presentation

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