Tony\'s Pizza has had problems lately. Most clients complain that they have to w
ID: 387152 • Letter: T
Question
Tony's Pizza has had problems lately. Most clients complain that they have to wait too long time until they receive the pizza they have ordered. Tony, the owner and cook of Tony's Pizza, thinks that this has to do with the preparation and delivery process and wants to explore possibilities to extend his business online.
Tony's Pizza is currently organized as a take-out/ delivery restaurant. Tony's Pizza has two other employees: a cashier, and a delivery guy. The process starts when a client calls the Tony's Pizza’s telephone number. The cashier takes the order and the delivery address and gives it to the Tony. Tony checks the order and decides which ingredients he needs for preparing the ordered pizzas. Tony's Pizza can deliver 25 different sorts of pizza, which are divided into two categories: standard pizzas and special pizzas. For the standard pizza types all ingredients are available in the kitchen. Some of the ingredients (e.g., sea-food) for the special pizzas need refrigeration and are kept in the storage room, so Tony has to pick them up first. When all ingredients are available Tony prepares the ordered pizzas and bakes them. Unfortunately, the oven is quite old and sometimes the temperature in the oven rises to the level that pizzas get burned. In that case Tony must repeat the whole procedure starting from the selection of ingredients.
When the pizzas in one order are ready, Tony gives them to the cashier, which puts them in boxes and hands them over to the delivery guy along with the delivery address. The delivery guy is also supposed to collect the money for the order and give it to the cashier upon return. The cashier puts the money in the cash register. Alternatively, if the client is ordering the pizza in person, the cashier gives the pizza directly to the client and cashes the money for it.
Another task Tony must take care of is replenishment. Some of the ingredients must be replenished daily and others weekly. Tony has to check all stocks and place orders at his regular suppliers when the stock levels are low. This is an activity he is taking care off at the end of each day. He makes a list with all necessary supplies and puts it next to the cash register such that the cashier can order them by phone in the beginning of the next business day.
The assignment is to:
Discuss Tony's Pizza’s current supply chain from raw material to final product.
Come up with a change proposal for a possible extension of the business online, in which some parts of the current processes could be outsourced to other companies and the main goal would be to eliminate inefficiencies in the current processes, and finally
Explain what consequences (in terms of differences between the current and future situation) this proposal may have with respect to the automation of some parts of the current processes by means of information systems (this is called a gap-analysis).
Explanation / Answer
1) Tony's Pizza's current supply chain can be seen as the set of activities from collection of the ingredients to making pizza, getting offline order from the customer, baked pizza's delivery to the consumer . Even, activities get completion with some delay like receiving ingredients by ordering via phone call. It will be necessary to make the supply chain stronger. Cash collection is also the part of reverse supply chain.
2) I will suggest the Tony Pizza’s the modern day food ordering and delivery system. It must change the older pattern of production and selling of Pizza which added no value addition to its name. First of all , It should designed a software which caters supply chain activities like inventory to Pizza's baking, current level of availability of ingredients, Receiving an online order via websites , prepaid cash collection from day to day sales, online billing , delivery time within 30 minutes and customer relationship management via registering them to the customer portal.
For every order online, prepaid and payment via digital transactions should only be accepted. it will remove the headache of cash collection and save cost of supply chain. Only pizza's sold at counter or bulk order will be given with cash payment mode. Customers will be attracted via cash backs and special coupons.
It will be better to have diversified range of Pizzas which will be started from low price to higher prices with varying ingredients and taste. Home delivery will be done by delivery boys’ across the city divided into different territories. Quality should be kept high so that people love to eat our Pizza. On the basis of locality, population and competition in food markets new outlets must be opened in near future. Outsourcing of some of the activities like delivery of Pizza, software handling and supplying man power should be done in relatively low cost. Kitchen will be developed with modern equipments which will bring faster making of Pizza. It should have such space which includes raw material storage and cooking area at a single place.
3) The new Information system will change the fate of its business. Now, people will be divided into different categories of work like Order service team who will receive the order from portal and processed to kitchen nearer to them. Another service executive will receive order from Phone or at cash counter and processed the same to kitchen. Kitchen will have 4- 5 executive who will ready to cook instantly the Pizzas and serve the delivery within few minutes. There should be one executive who will mange delivery boys on the basis of first come first serve basis. An executive will be given incentives and reward in terms of delivering timely and highest Pizza sales. Everything interms of CRM and Billing will be done via software and auto generated response for servng time 30 minutes will be sent to the customers.