Logistics and Supply Chain Management Case Study Report

This case study report focuses on the logistics and supply chain management of Domino's Pizza of Wheelers Hill Australia. It covers buyer behaviour segments, decision factors, CSR impact of sourcing, sourcing tasks, CSR metric evaluation and more. The report evaluates the CSR metric of air quality and waste and suggests implications of introducing the CSR metric.

Logistics and Supply Chain Management
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Contents
Part A: Case Study Report............................................................................................................................3
1. Introduction.............................................................................................................................................3
2. Organisational background......................................................................................................................3
3. Buyer behaviour segments......................................................................................................................4
4. Decision factors.......................................................................................................................................5
5. CSR impact of sourcing............................................................................................................................7
6. Sourcing tasks..........................................................................................................................................8
7. CSR metric evaluation............................................................................................................................11
7.1 CSR metric overview........................................................................................................................11
7.2 Unique product identifier................................................................................................................11
7.3 Changes to sourcing tasks................................................................................................................11
7.4 CSR metric calculation.....................................................................................................................12
7.5 Implications of introducing the CSR metric......................................................................................13
8. Conclusion.............................................................................................................................................16
References.................................................................................................................................................17
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Part A: Case Study Report
1. Introduction
The aspect of globalisation has allowed business organisations to expand their business around
the world. This in-turn has resulted in forcing companies to enhance their supply chain process to
meet customer’s demand and expectations (Ross, 2016). In this paper, the business of Domino’s
Pizza of Wheelers Hill Australia would be selected. Domino’s Pizza operates under Food
Delivery Franchising Restaurant industry. The report would also highlight the product category
of “Veggies, Meat and Beverages” of Domino’s along with the evaluation of CSR metric of air
quality and waste.
2. Organisational background
Domino’s Pizza is one of the most popular pizza delivery restaurants that have been operating in
the market since 1960s. It is an American based pizza delivery franchise which currently
operates in almost every country of the world. Domino’s Pizza has been recognised as the largest
pizza seller in the world in 2018 due to its enormous sales figure. Domino’s Pizza opened their
first store in Australia in the year 1983 in Springwood, Queensland (Domino's Pizza, 2018). The
goals/strategies of the business of Domino’s Pizza Australia is to produce high quality pizza at
low price, continuously provide training to its employees to enhance customer service and to
ethically source raw material to ensure high level of corporate social responsibility.
The business of Domino’s Pizza branch of Wheelers Hill in Australia has been involved in the
sales of various products to its customers such as
 Veg and Non-Veg Oven Baked Sandwiches.
 Veg and Non-Veg New Yorker, Premium, Traditional, Value Range, Vegan Range and
Gluten Free Pizza.
 Chicken and Savoury Sides.
 Wide range of drinks which includes shakes coffee and soft drinks.
 Deserts (Domino's Pizza, 2018).
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3. Buyer behaviour segments
The classification of buyer behaviour segments in the business of Domino’s Pizza Australia
could be done on the basis of three different segments such as Price Conscious Consumers,
Loyal Consumers and Quality and Reliability Concerned Customers.
Buyer
Behaviour
Segments
Demand
Profile
Competitive Profile Product Profile Typical Demand
Profile
Price
Conscious
Consumers
The consumers of
Domino’s Pizza who fall
under the category of
price conscious are
generally competitive in
choosing their products.
This group of customers
tends to choose products
which are low price and
can easily switch brands
depending on the price.
Therefore, Domino’s
Pizza would have to
implement low price
strategy in order to
attract them towards the
business.
Loyal
Consumers
The loyal consumer
group is generally
product profile in nature
as they hardly care about
the price of the products.
This group of consumers
orders their desire
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products from Domino’s
quickly and efficiently.
Quality and
Reliability
Concerned
Customers
Quality and Reliability
concerned consumers
are an important factor
for the business of
Domino’s as they could
either positively or
negatively impact the
market image of the
company. Therefore, it
becomes important for
the supply chain
management of
Domino’s to focus on
sourcing high quality
raw materials to attract
health and quality
conscious consumers in
Wheelers branch of
Australia.
4. Decision factors
Key Decision Factors Changes or No-Changes
Flexible Work Timings The management of Domino’s Pizza of
Wheelers branch should look to keep their
workforce motivated by providing them with
the opportunity to select their work timings as
per their preferences (Altindag & Siller, 2014).
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It should be taken into consideration that a
motivated employee would be beneficial in
enhancing productivity of the business by
enhancing customer service in the store. This
would benefit in achieving the goals and
strategies of the company.
Weekly or Monthly Training The top management authorities of Domino’s
Pizza in order to fulfil the aims and objectives
of the business would have to indulge its staffs
into regular training (Persaud, 2005). The
company would have to organize weekly
training sessions for its employees who would
focus on overcoming issues related to customer
service, customer handling techniques, phone
etiquettes and development of professional
relationship with the guests. These sessions
would help in improving customer service and
thus achieving its goals and objectives.
Technological Adaptations The employees of Domino’s Pizza in Wheelers
branch should be provided training and
guidance to adapt them towards latest
technological advancement in the company.
The in-house staffs are required to be
technologically advanced in order to solve
queries of consumers easily and effectively
(Domino's Pizza, 2018). This would lead in the
enhancement of customer service and would
also help in gaining competitive advantage in
Australia.
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5. CSR impact of sourcing
For Dominos, it is essential on the part of the company to source raw materials including meat,
vegetables, and beverages among others. In order to source these products the company needs to
rely on suppliers. The company has Both Tier 1 and Tier 2 Suppliers, which has been highlighted
in the diagram. The environmental impacts that these suppliers could cause includes;
Vegetables:
 The increased usage of lands for intensive agricultural practices is likely to decline the
productivity of the land and soil structure
 Spraying pesticides also contributes to air pollution
 By-products runoffs in water bodies causes pollution
Meat
 Meat processing contributes highly to green house gas production
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 The red meat production requires 28 times more land to produce than pork or chicken, 11
times more water and results in five times more climate-warming emissions (Damian
Carrington, 2014)
Beverages
 High energy consumption, which increases green house gas production
 Generates a lot of solid and liquid waste which pollutes the environment (Pathak, Hagare,
Guo, & Ngo, 2015)
6. Sourcing tasks
The SCOR model is referred to as a management tool that aims to address, communicate and
improve the decisions related to the supply chain management of a particular company that is
associated with the customers and the suppliers (Hwang, 2014). The following is the diagram for
SCOR process model for Dominos which is further explained below:
Figure 1: SCOR process of Dominos
Source: (Harrison & Amjed, 2014)
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There are five tasks of the SCOR process model which is based on the supply of the veggies,
meat and beverages from the tier 1 and tier 2 suppliers of Dominos which have been already
stated above.
SCOR process Information System Activities Duration
Plan Enterprise Resource
Planning
Dominos conducts market
research to assess the
demand and thereby
makes the suppliers
decision and informs the
respective Tier 1 suppliers.
At this stage Dominos
decides on the inventory,
transportation, regulatory
compliance and assets
associated with the supply
chain
1 month
Source Raw materials
Information system
The sourcing infrastructure
of Dominos is
international as the
veggies and meats are
sourced from suppliers
such as Kagome, Ingham,
JBS, Primo along with
local farmers while
beverages are sourced
from Schweppes Australia
and Coca Cola
Every 10-15 days
Make Manufacturing and
Production
Information system
The veggies are make-to-
stock while the meat and
beverages are make-to-
order. The veggies and
10 days
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meat and beverages are
produced at the respected
factories and units and are
packed using materials
that are not environmental
friendly and release
directly to Dominos’
distribution centre in
Australia
Deliver Transaction
processing system
The orders delivered by
the tier 1 suppliers would
be managed by the
warehouse and distribution
centre of Dominos
5 days
Return Transaction
processing system
The tier 1 suppliers are not
prepared to handle the
return of the containers or
packages
7 days
7. CSR metric evaluation
7.1 CSR metric overview
The suppliers of Dominos have made significant environmental impact due to the waste from
packaging materials which are not environmental friendly. Considered this, the suppliers of
Dominos are required to make substantial changes in their packaging process and materials and
also waste management. The disposal of the packaging materials has been causing air pollution
which has deteriorated the air quality. On the other hand, the waste in the environment has also
increased due to the disposal of the packing material. Each of the CSR metrics would aim to
assess the CSR index for Dominos.
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7.2 Unique product identifier
In order to supply products including vegetables, meat and beverages, it is essential for Dominos
to include GS1 identification key. GTIN is used in general for identifying any trade item
(product or service) at any point in any supply chain. In the case of Dominos the GTIN number
could be GS1 Company Prefix or GS1 9501101 (Hypothetical). Apart from that, each of the
products needs to have a specific code and if those are frozen, then separate key are used, for
example: GS1 9501101 02 (gs1.org, 2018)
7.3 Changes to sourcing tasks
The changes that have been made to the sourcing tasks previously done are mainly the
elimination of the Source Engineer-to-Order Product and Make Engineer-to Order. On the other
hand, the sourcing task of the SCOR process has been modified with the introduction of a
technology called ‘Machine readable barcode scanner’ which will help to identify the sourcing
quantities. The Make task has also been modified with the introduction of new software to
manage the suppliers which is called the Cloud-based Suppliers Management software. The
modified SCOR process of Dominos is as follows:
Figure 2: Modified Score Process
Source: (Harrison & Amjed, 2014)
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7.4 CSR metric calculation
In order to determine the extent to which the supply for the company affect the environment
could be determined through correlation. The sources of data and the data needed for the work
has been presented in the diagram.
Customers Air pollution Waste production
Customers 1
Air pollution -0.11757927 1
Waste
production
-
0.17471413
9
0.60395717
4 1
From the correlation, it is seen that as per the correlation value for the air pollution and waste
production is low, which indicates that the customer think that the supply process of the
company create impact on the environment, however the impact of supply on air pollution is
more.
7.5 Implications of introducing the CSR metric
The positive implication of assessing the CSR metric into the organisation is to understand the
negative environmental impact that the suppliers are imposing through their operations. This
would help Dominos to strengthen their CSR policy and Supplier’s Code of Conduct. In doing so
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the company would be an environmental friendly company which will help to improve their
brand image and attract more ethical consumers (Aznar-Sánchez et al., 2018). One of the
benefits of selecting environmental metrics for CSR calculation is that it will help the company
to estimate their sustainability index and frame strategies to achieve further sustainability. On the
other hand, the negative implication of the introduction of the CSR metrics is that Dominos
would have to incur cost of the technologies such as barcode scanner and cloud-based supplier
management software which will help them to monitor and address the environmental impacts of
its suppliers. The CSR metrics also have negative implication on Dominos as it would force the
company to disqualify some of its supplier’s contract to ensure its CSR initiatives are in
compliance with the principles of sustainable development.
1) Feasibility of owner/staff collecting the information needed for the metric,
The information needed for the CSR metric has been sourced from the customers of Dominos
who have been questioned about the practices of the company to engage in waste production and
thereby air pollution. The feasibility of the information could be ascertained as the customers had
made genuine and unbiased comments and choices on the survey and have presented authentic
information about what they feel about the negative environmental impacts imposed by the
company for which the suppliers are solely responsible. The information is feasible as the CSR
metric based on correlation calculation suggests that there exists a positive and strong correlation
between the waste production and air pollution. Since the value of correlation coefficient is 0.6,
it can be said that the waste production released from the supplier’s packaging materials would
release harmful gases in the environment leading to air pollution.
2) Availability and accessibility of the information,
The availability and accessibility of the information had been quite easy and high respectively as
the owner collecting the information had been at the different Dominos store in Australia. At
peak hours, especially during the lunch hours, the availability of the customers is high. On the
other hand, each of the customers could be accessed as they were willing to record their response
in the survey. However, few customers were disturbed with the survey procedure and declined to
be a part of the survey.
2) Time required and the impact on the organisation (e.g. staff resistance),
The time required in conducting the survey and collecting all the information about the
environmental aspects such as waste production and air pollution is about 7 days. This is because
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it required travelling to different stores of Dominos which are distant in location. The travelling
time has been a contributing factor in the completion of the information collection. The survey
also took time as the customers were given 10-15 minutes to record their responses. Conducting
the survey had significant impact on the organisation as there was staff resistance as they learned
about the purpose of the survey. The staffs were also approached to reveal their tier 1 and tier 2
suppliers but they refused to do so as they were aware of the negative environmental impact that
its suppliers’ are causing. However, staff resistance was also observed when questioning the
customers as they believed that it could hamper their brand reputation. However, the customers
had been willing to be a part of the survey and record their valuable responses.
3) GS1 identification key existence
Domino’s Pizza is seen to use Case-level barcodes - GS1-128 with dynamic information
including batch/lot/use by date, etc. at the end of the code. However, it is essential on the part of
the company to make sure that they lower the environmental impact, which needs to be
highlighted in the GS1.
4) Feasibility of new technology for the organisation
It is seen that Dominos pizza is likely to benefit from the ‘Machine readable barcode scanner’
‘Cloud-based Suppliers’ Management’ software. With the nature of the business and the extent
of the business, it is likely that the company would easily be able to implement the technologies.
However, with the vast nature of the supply chain process of the company, the company could
face problem with application in all the levels of the supply chain process (Leonard, 2011). Also
the employees might resist to the new changes in technology, if they are not comfortable with the
process of handling these. However, the feasibility of the technology application also depends on
the extent to which the technology is able to reduce the environmental impact.
5) Feasibility of calculating the metric
With the implementation of the new technology in the supply chain process of the company, it
would enhance the operations of the company to a great deal. On the other hand, it has been
identified that the CSR metric include waste production and air pollution. But with the
implementation of the new technology, the company would not be able to contribute much to
CSR, apart from identifying the sourcing quantities. However, it is likely that identifying the
sourcing quantities would ensure that there is no excess sourcing; otherwise it might increase the
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waste production and air pollution. Apart from that, the implementation of the new technology is
considered to be beneficial for the company, as it would lower the transportation duration.
6) Need for any owner/staff training
In order to implement new technology within the internal processes of an organization, it is
likely that the company would face resistance (Gerard & Lave, 2005). Thus, it is essential on the
part of the company to make sure that they invest in staff training. In the case of Dominos, it is
also important to make sure that the staffs are provided with adequate training so that they could
use the ‘Machine readable barcode scanner’ in order to ease up the process of supply chain and
lower the mistakes, of order and delivery. As it would greatly contribute towards supply chain
efficiency and lower the generation of the GHG emissions. Also the usage of the ‘Cloud-based
Suppliers’ Management’ software needs training, and computer proficiency to handle the system.
8. Conclusion
It is seen that Dominos takes supplies of their ingredients, mainly meat, vegetables and
beverages from both tier 1 and tier 2 suppliers. However it is essential to ensure CSR in their
supply chain, so as to lower the waste generated in the process and curb air pollution. The tier 1
and tier 2 suppliers have been supplying veggies, meat and beverages in boxes which are no
environmental friendly and they do not take the responsibility to take back their packaging boxes
and dispose them. This has increased waste generation for Dominos and also increased the level
of air pollution. This paper has described the SCOR process to ascertain the supplier’s
interaction with the company and also calculation of CSR metrics has been done.
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