We visited Dominos’s 72,000 sq. ft. commissary located close to Mumbai to understand the competitive advantage the company derives from its supply chain. Note that the commissary is a key component of the supply chain and it coordinates the supply of raw materials to the stores. The commissary serves 240 stores across c800km radius in west India (stores across Maharashtra, Gujarat, Goa, and regions of Udaipur (Rajasthan), Indore (Madhya Pradesh)) and it has potential to serve c400 stores. While the key contracts (rates, terms) are negotiated centrally, the commissary is responsible for day-to-day orders (for vegetables, flour etc) and it ensures that all stores receive raw materials in 2-3 days. Note that beverages are provided directly to the store by the vendor.
It maintains three warehouses: 1) dry warehouse for materials such as store uniforms, ketchup etc; 2) frozen warehouse (maintained at – 18 degrees Celsius) for desserts etc; and 3) warehouse for perishables such as vegetables (maintained at -1 to -4 degrees Celsius). Further, vegetarian and non-vegetarian materials are stored separately. For hand-tossed pizzas (c95% of volumes), the commissary supplies dough (measured and placed in a pan) to the store. In contrast, the thin crust pizza base is prepared at the commissary.
Process details at the commissary
Cutting of vegetables and manufacture of choco lava cake is outsourced to vendors. Jubilant monitors the quality standards of these vendors. Preparation of dough is carried out at the commissary. Moreover, for thin crust pizza, base is prepared at the commissary and has a shelf life of three months. In case of hand-tossed pizza, the commissary prepares the dough and supplies it in measured quantities (as required based on size of pizza) in the baking pans to stores. Chicken is supplied in frozen form to the stores. The stores heat them and put the sauces on the chicken pieces during preparation.
The Dunkin Donuts commissary serves eight restaurants across Mumbai, Pune, Ahmedabad, and Goa. Donuts and breads are prepared at the commissary during the night and delivered to the stores.