MANAGEMENT REPORT ON PIZZAHUT WITH RESPECT TO THEIR SUPPLY CHAIN MANAGEMENT

SUPPLY CHAIN MANAGEMENT

According to the Council of Supply Chain Management Professionals (CSCMP), supply chain management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management. It also includes the crucial components of coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies. More recently, the loosely coupled, self-organizing network of businesses that cooperate to provide product and service offerings has been called the Extended Enterprise.

problems
Supply chain management must address the following problems: Distribution Network Configuration: number, location and network missions of suppliers, production facilities, distribution centers, warehouses, cross-docks and customers. Distribution Strategy: questions of operating control (centralized, decentralized or shared); delivery scheme, e.g., direct shipment, pool point shipping, cross docking, DSD (direct store delivery), closed loop shipping; mode of transportation, e.g., motor carrier, including truckload, LTL, parcel; railroad; intermodal transport, including TOFC (trailer on flatcar) and COFC (container on flatcar); ocean freight; airfreight; replenishment strategy (e.g., pull, push or hybrid); and transportation control (e.g., owner-operated, private carrier, common carrier, contract carrier, or 3PL).

Trade-Offs in Logistical Activities: The above activities must be well coordinated in order to achieve the lowest total logistics cost. Trade-offs may increase the total cost if only one of the activities is optimized. For example, full truckload (FTL) rates are more economical on a cost per pallet basis than less than truckload (LTL) shipments. If, however, a full truckload of a product is ordered to reduce transportation costs, there will be an increase in inventory holding costs which may increase total logistics costs. It is therefore imperative to take a systems approach when planning logistical activities. These trade-offs are key to developing the most efficient and effective Logistics and SCM strategy. Information: Integration of processes through the supply chain to share valuable information, including demand signals, forecasts, inventory, transportation, potential collaboration, etc. Inventory Management: Quantity and location of inventory, including raw materials, work-in-process (WIP) and finished goods. Cash-Flow: Arranging the payment terms and methodologies for exchanging funds across entities within the supply chain. Supply chain execution means managing and coordinating the movement of materials, information and funds across the supply chain. The flow is bidirectional.

Company profile of pizzahut

one of the flagship brands of Yum! Brands, Inc. Frank and Dan Carney opened Pizza hut in 1958 12,500 restaurants across 91 countries Indian outlet opened in June 1996 in Bangalore. 147 restaurants across 36 cities in India. 27 per cent market share of the eatingout market and over 70,000 footfalls per day.

CORPORATE STRATEGY
We want to satisfy our customer by offering them the best C.H.A.M.P.S (Cleanliness, Hospitality, Accuracy, Maintenance, Product quality and Speed) 3Fs ( Fun, Friendly and Familiar)

What products are offered?

Sauted Pastas Beverages Appetizers Soups and Salads Pizzas Desserts

SUPPLIERS
Direct Suppliers Pepsi Cremica Group (Buns) Indirect Suppliers Meat market : Chicken from Brazil Vegetable market : Potatoes from Australia Sauce companies

 Snowman Frozen Foods provides cold storage facility 16 warehouses and 110 trucks Equipped with Carrier and Thermo King transport temperature control units. Cold storage capacity is between 100 tonnes and 1,200 tonnes.

 largest customer data warehouse Profile and segment customer households Track phone orders & online orders Increased ROI Increased ROI Predict the success of a campaign Simplified data management

Adjusting SC Member Capabilities

Manager audit the Supply chain members capabilities & their partners, to determine consistency with needs of end customers & SC. Pizza hut continually reassess performance with respect to requirements. The best SC performers are more responsive to customer needs, quicker to anticipate changes in the markets, & control costs much better.

IMPROVEMENT IN SUPPLY CHAIN PERFORMANCE

Pizza hut has worked a lot to increase the responsiveness towards customers demand. Few yearsback they had some complaints from the customers, who ordered for home delivery service.Actually the pizza hut claims that where ever you live, your location does not matter, we deliveryour order with in 45 minutes to you. For this purpose they have designed their own softwaresystem at which they save the data (name, contact number and address) of customers who call attheir call centre to order pizza and enjoy the home delivery service. Pizza Hut now tracks notonly phone orders, but online orders and can track in real time what commercials people arewatching and responding to.

 After receiving the order from customer, pizza hut let go the bike rider. But sometimes customer complaint that they did not receive their order at the time. This may happened because of trafficjam, in case of accident of bike rider or due to disorder of bike in the middle of the way. To make their customers satisfied with their service, pizza hut found a solution that whatever the sort of ,whenever there may some problem occur, the bike rider must has to call at pizza hut and make them aware of the problem. After receiving call from that rider, pizza hut immediately sends the other rider to deliver the order and at the same time call centre connects the call to that customer who is waiting for his desired order, explains him whole situation and requests him for his cooperation and patience (if there may few minutes exceeds up to 40 minutes). By sending another person to deliver customers order, pizza hut now successfully improves the flow of its supply chain process.