The fast food industry is one of the most competitive industries.
The competition majorly depends upon price, quality and service (which are core aspects of Supply Chain Management). Hence there is immense pressure on all the organizations in the fast food industry to keep the three aspects studied above to their supreme best.As fast food industry is one of the most emerged industries in the recent past, the supply chain has seen huge transformations in this industry. The industry is still emerging so as the transformations in the supply chain management of this industry. Pizza hut was started in the year 1958 by two brothers Dan & Frank Carney.
This was an idea suggested by a common friend which they agreed to. In 1972 they introduced corporate strategy. In the mid 90’s the profits of Pizza Hut were declining. Hence Dan & Frank Carney thought of selling out the company. In the year 1997 Yum! Brands acquired pizza hut and is currently (Pizza hut) under Yum! Brands.
Highlight of Pizza hut is its variety in Pizza, garlic bread, pasta and breadsticks. In order to meet the production of the mentioned (menu) products pizza needs to co-ordinate all the suppliers of vegetables, chicken and bread and work in coordination with them. Keeping this aspect efficient is the key success factor of Pizza Hut. As we know that if an organization can manage its core competencies effectively they can surely act as competitive advantage for the company.As the ingredients for various products of pizza hut are acquired through various suppliers from different parts of the globe.
There has to be proper communication to keep the supplies and demand under check. The strategic policy of Yum! Brands involve the suppliers to understand their role and impact in the overall performance of the organization. This keeps the supplier relations management aspect in place for the organization.Pizza Hut has restaurants and they also deliver their products to customers place.
The supply chain in these cases differs. If it is served at the restaurant then it usually shortens the supply chain and if the product (pizza, pasta etc), then the supply chain has transportation included in the supply chain.
