Pizza Hut Supply Chain Analysis

Pizza Hut was established by Dan and Frank Carney in Wichita, Kansas, USA in the year 1958.
Pizza Hut Inc. is one of the prevalent pizza companies worldwide. It was a subsidiary of Pepsi Co Inc. from the year 1977 – 1997. It is a wholly owned subsidiary of YUM! Brands since 1997 to present.
Pizza Hut currently holds maximum number of outlets and largest market share. The company administers over 13,000 pizza restaurants and delivery footprints in approximately 90 countries across the globe.

Pizza Hut is the first ever company to introduce the American Pizzas worldwide to the mass-market through its casual dining concept. It was also a Pioneer in establishing its online ordering channel as well.

Pizza hut has specialized & is famous

They serve as marketing mediators ensuring that the right distributor has been chosen, availability of the product in the market etc.
e) Customers – Customers are the end users of the products supplied by the distributor.
The below diagram represents a customary supply chain process;

Supply chain in Pizza Hut is very dynamic and plays a vital role in achieving organizational goals and maintaining brand image. The organizational objective of Pizza Hut is to be the unbeatable market leader by providing relentless innovation, commitment to quality, dedication to customer service and value across the globe. Pizza hut has various strategies and sub strategies to achieve its objectives.

Effective supply chain in pizza hut ensures that quality food is provided to customer’s efficiency leading to consumer satisfaction. And in return a satisfied customer ensures that the company continues to manage its market leadership by the word of mouth spread by the customer & the market feedback.

The below diagram reflects the supply chain management process in Pizza

b) Relationship Management – They maintain close relationships with their suppliers in contrast to the traditional price driven relationships hence, strengthening supplier / buyer relation.
Pizza hut also analyses the requirements and ensures to formulate the supplier with correct quantity, subsequent supportive plans, timelines etc. which ensures that there are no delays hence, maintaining a healthy balance between the supplier and buyer relationship.
In addition to this the above strategies ensure that most of the goods are procured locally, a chain of local suppliers is formed which reduces the overall cost. A survey states that pizza hut procures 95% of its raw material locally hence, enhancing its relationship with various local suppliers, reducing the prices significantly and managing the supply risks and challenges.

2.2 Use Information Technology to create strategies to develop your chosen organization’s relationship with its suppliers. (Criteria 2.2: Use information technology to create strategies to develop an organization’s relationship with its