Question

Q: Give detail information about the PIZZA HUT. After that, give an answer to the following question:

1. Identify the competitive strategy of PIZZA HUT company, justify your answer?
2. Based on your supply chain knowledge, suggest a distribution network for the PIZZA HUT company, justify your answer?
3. In what aspect PIZZA HUT company has become leading in the supply chain. Discuss in detail these aspects.
4. Explain how PIZZA HUT company benefited the information technology to achieve excellence in the supply chain.
5. What was the supply chain management process adopted by PIZZA HUT company? Discuss, how far was the effect of that approach to reach a competitive edge.

Answer 1

Information about PIZZA HUT

Two brothers Dan and Frank Carney borrowed $600 from their mother to open a pizza unit in Wichita, Kansas. The company is known for its Italian-American cuisine menu, including pizza and pasta, as well as side dishes and desserts. They named there eatery as Pizza Hut. Soon, the restaurant grew due to the pizza was awesome, the service felt like home and the customers were treated like family.

From day one, the Carney brothers could look their customers in the eye and promise them the finest pizza in town, because they knew the farmers who grew the ingredients, and they knew those farmers cared about quality. The ingredients they use are still their highest priority.

Pizza Hut has 18,431 restaurants worldwide as of December 31, 2018,[4] making it the world's largest pizza chain in terms of locations

Distribution network for the PIZZA HUT Company

Pizza consumed by large population size but small amount was purchased by an individual purchaser or user. The user population is geographically dispersed. This is a typical Direct Channel distribution

In what aspect PIZZA HUT company has become leading in the supply chain

Pizza hut used different types of supply chain activities,

People dine-in at Pizza hut restaurant and order with a great variety of pizza and allied items in a restaurant kind of ambient

            Home and office deliveries of pizza’s against phone call made to the nearest Pizza hut location. The user makes a call to the nearest pizza hut and gives order of Pizza and other items. Then the orders is delivered to the delivery address

            The users also can make an order trough internet website. Pizza hut has its own website where the user log-in, browses for different variety, make an order and choose to pay. Then the orders is delivered to the user

            Recently, many mobile food delivery apps are developed and the user can order through this as well. This is again something like web ordering where as the difference is the orders are taken through a third party and delivered by third party.

Explain how PIZZA HUT Company benefited the information technology to achieve excellence in the supply chain

Pizza hut used various methods to attract the younger generation to buy their products. Some of the mainly used methods are given below,

Online marketing campaigns like promotion through mails: - Individuals are targeted by sending promotional mails to their e-mail ids

Web Ordering: - Website users are attracted with different offers on daily basis

Food delivery apps: - This is used again with offers by Pizza hut themselves apart from separate offers from Food delivery apps

Tie-up with meal networks: - This will enable them to utilize the meal pass given to the employees

Coupons: - Online coupons and meal pass coupons given to the users to promote identified locations of pizza hut

Advertisement to Magazines: - Advertized in many online and reputed magazines.

What was the supply chain management process adopted by PIZZA HUT company? Discuss, how far was the effect of that approach to reach a competitive edge

Pizza Hut uses franchise model of supply chain.

Pizza Hut has direct suppliers and indirect suppliers.

They follow Just in Time (JIT) for direct suppliers (Buns and oils). These materials were bought in daily basis based on the consumption on previous day. Indirect supplier materials (Vegetables, meat, Sauce) are bought and kept in their central warehouse.

These materials are then transported to the various franchises in the city on daily basis. Pizza hut also has its own supply chain services. This model allows Pizza hut to maintain very high quality standard and maintain consistency across the franchise units.

This is enabling pizza hut to consolidate all the requirement of raw material and leverage with direct and indirect suppliers on cost/delivery. This provides the organization to attain competitive advantage with its competitors