1 Hut at 25% but with much greater

1 Domino’s Pizza –
Liverpool – London Road

 

Domino’s
Pizza is the UK’s leading
delivery/takeout chain offering a wide range of pizza, plus chicken & other
sides. They deliver hot, great tasting, freshly handcrafted pizzas to
customers.

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The
first Domino’s store opened in the UK in 1985 and now has over 1,000 stores
across the country and more than 35,000 team members. Last year, they sold
almost 90 million freshly handcrafted pizzas, including over 7 million of the
UK’s favourite, Pepperoni Passion. (Dominos, 2017)

Domino’s
has 26% of the UK pizza market, just ahead of the longer established Pizza Hut
at 25% but with much greater dominance of the growing delivery market. (Farrell,
2014)

For
this particular assignment, I will focus on the branch located in London Road,
Liverpool. This store is open 24 hours a day and they provide Delivery &
Collection service between 06:00 – 01:30 and a Delivery Only service between 01:30
– 06:00.

There
are variety of ways in which they allow customers to make an order. They can
either call in person in store or a customer can just pick up the phone and
ring to place an order and then either request for delivery or turn up in
person to collect when the pizza is ready. Another great way is that customers
can log in online to place an order. After placing the order, they are provided
with option of tracking every stage in preparing the pizza.

2 Enterprise Resource
Planning

Domino’s
Pizza employs a number practices in its supply chain operations in order to
manage inventory control. For this assignment, I will discuss about Enterprise
Resource Planning (ERP) systems that it actively uses.

ERP systems are the software tools used to manage all the
enterprise’s data, and to provide information to those who need it when they
need it. These systems help organizations deal with their supply chain:
receiving, inventory management, customer order management, production planning
and managing, shipping, accounting, human resource management, and all other
activities that take place in a modem business. (ARIK RAGOWSKY, Summer 2002)

3 Strengths and
Weaknesses

If well implemented ERP
would pay off for the heavy investments handsomely and quite often reasonably
fast. As the ERP systems address the entire organizational requirements, and
not just a select few departments, ERP introduction brings a new culture,
cohesion and vigor to the organization. It is a common practice that after ERP
introduction, managers would no longer have to chase information, check
compliance to rules or conformance to budget. This is because ERP
integrates all the individual department functions
into a single software application which makes it easier to track the
workflow across various departments.

3.1
Strengths

1. Complete visibility into
all the important processes, across various departments within Domino’s by
making data from every department easily accessible. As such it becomes easy to
notice when inventory is running low and be able to place an order for more in
real time.

2. Automatic and coherent workflow from different departments, to ensure a smooth
transition and quicker completion of processes. All the inter-departmental
activities are easily tracked because in ERP, information/data from different
departments are funnelled into one centralized location.

3. ERP provides a unified/single reporting system that can easily analyse data in real-time,
across all functions/departments.

4. It is cost effective and saves money in a way that instead
of individual departments having to buy and maintain their own ERP software
systems, same software is
now used across all departments.

5.  ERP system provides a single, unified reporting
system for all the processes in the store by having a single source of
information. This gives an overall insight on business processes and identify
potential areas of problems/improvements. ERP system can readily generate
useful reports and analytics at any time. This saves managers the hassle of
wasting time having to use spreadsheets and emails too.

6. With ERP systems, it is easy to introduce advanced e-commerce integration as most of
them can handle web-based order tracking/ processing.

7. As there are many
other modules in an ERP system e.g. Finance/Accounts, Human
Resource Management, Manufacturing, Marketing/Sales, Supply Chain/Warehouse
Management, etc, a store can easily just use one software to run the business.

8. ERP is a modular software system that allows a business to
implement either a few modules (or) many modules based on the requirements of
an organisation. If more modules implemented, the integration between various
departments may be better. (Rex, September 2016)

9. There is a centralized
storage/back-up of all Domino’s data. This is because
data/information is accessed/input in one centralised location.

10. ERP systems are more secure, this is because centralised security policies can be
applied to them. What helps ERPs maintain a high level of data security is that
it provides a single input system. Combining information from numerous
systems usually cause conflicts between sources, but having a single repository
of information helps improve the accuracy, consistency, and security of a
company’s data. (SelectHub, 2017)

11. Duplication of information/data is avoided. This is
because ERP systems provide/enable better collaboration across all the departments. (Arciniega,
2013)

12. It is possible to integrate other systems (like bar-code
reader, for example) to the ERP system through an API (Application Programing Interface).

13. ERP systems make it easier to track order/inventory/revenue/sales forecasting and
similar activities.

3.2
Weaknesses:

1. The cost associated
with ERP Software implementation is too high. This is evident in small to
medium companies when it comes to testing, planning, configuration, customization,
etc.

2. There is also the opportunity cost of man power since it
takes time to fully deploy an ERP system. For this to be completed and fully
functional and depending on the size of a company, projects may take upwards
of 1 year.

3. If customisation is
not assessed properly by a company/store, too little/too much of it may not
integrate the ERP system with the business process or it may slow down the
project all together.

4. As employees have to participate in extensive ERP user
training, drop in productivity is inevitable in a business while employees get
brought up to speed with the system. (Brooks, 2013)

5. The participation of
users is very important for successful implementation of ERP projects – hence,
exhaustive user training and simple user interface might be critical. But ERP
systems are generally difficult to learn (and use).

6. For ERP systems to work correctly and effectively, existing
business process are required to be redesigned. However if this processes are
unchanged and only suit previous processes maximum ERP optimisation will be
hampered. (Business Leadership Management (BLM), 2013)

7. ERP software is largely sophisticated and because of this
company’s tend to install more functions/features than is required. This may
sometimes prove too difficult to use and its usage will be reduced.

8. If ERP software is implemented without testing, this can go
horribly wrong and incur losses to a business. For example in 200-2001 Nike’s
stock dipped 20% ($100 million) in lost revenues as a result. (Dr. Nabie Y.
Conteh, Nov 2015)
 

4 Improvement Recommendations

Since it takes a
long time for