Business Magazine

Supply Chain Success by the Slice

Posted on the 25 November 2014 by Ryderexchange

Move over Black Friday. There’s a new logistical challenge on the radar, the pizza supply chain. How do you move three million pounds of pizza toppings to bustling franchises, stretching from Bangor, Maine to San Diego, California (3,300 miles), all in an effort to satisfy spiking demand on the day before Thanksgiving?Pizza Stores Supply Chain

Welcome to ‘Operation Slice’.  Your mission as supply chain manager, should you choose to accept it, is to coordinate the movement of ingredients necessary to make and sell 1.2 million pizzas to customers all over the United States, on the day that’s been declared a no-cook zone by the chains of command in many households.

Moreover, Santa is unavailable for consultation due to another logistical project that requires his total focus. So how can you tell if you have a supply chain that’s ready for ‘Dough Day’? How do you know you have the right stuff, the mix of personnel and technology to move the varied ingredients that go into 9.6 million pizza slices?

Peak planning is one of the most crucial components in pulling this project off. Managers must begin their preparations by assembling and training a team that is focused on preparing for holiday demand and capacity. Cross-training new team members on multiple skill sets will give managers the ability to properly position new people.

Managers also need to make sure their distribution centers are set up for productivity as the clamor for pepperoni, onions, extra cheese, and the like surge from town to town, market to market, all over the country. Fast-moving products should be stocked closer to operating areas to reduce travel distance.

For products with different order velocities, a slotting plan should be developed to help ramp up fulfillment in the event there’s local or national volatility in the evolving turf war between the meat lovers and the veggie-philes.

And as volume spikes, supply chains will see more full-pallet or full-case replenishment orders. Setting up the distribution center to support cross-docking will save time allowing the workforce to move the products through the facility and build orders faster.

One of the big trends of the last three years is the ability to have flexible order processing capabilities. This is about having a build-to-order supply chain – allowing companies to adjust order patterns quickly to capitalize on changing trends.

Managers also have to consider how fluctuations in driver availability and capacity constraints might impact the whole task of getting 13.8 million feet of pizza to customers who want their pies delivered in 30 minutes or less.

Just as distribution center teams are being built, drivers must be in place to haul the raw materials to the pizza outlets. This underscores the benefits of a dedicated fleet, as it ensures drivers and capacity are available during peak periods.

A strong supply chain has the flexibility to handle all of these items. ‘Operation Slice’ begins with having the end-to-end capabilities that are able to adjust and deliver results.  And with a strong plan and team in place, pizza delivery supply chains can be ready for the demands that come with the hungry stomachs and quirky topping combinations requested on the day before Thanksgiving.

While it might not be a day at the beach, a robust plan and the right logistics partner will put a supply chain manager in the best possible position to make ‘Operation  Slice’ a rousing success.


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