Papa Johns Essay

Published: 2020-04-22 15:06:56
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In 2007 Eric Hartman, Papa Johns senior director of logistics, decided that it was time to give the companys supply chain a complete makeover in order to keep up with the companys rapid growth (Trunick). Different areas of the supply chain were hindering efficiency and costing money, a recipe for disaster (Trunick). Specifically, the planning, inventory, and shipment areas were in the most need of transformation. The planning aspect at the store level, or quality control center, required managers to call in the supply orders the stores needed.

This ordering system was sometimes ineffective because stores would often order too much, or not order enough due to miscommunication. Thus, many items were written off or placed in off-site storage, both of which were unnecessary costs to the company. To combat the issue, Papa Johns teamed up with PJ Food Service, Papa Johns parent company, to provide stores with an electronic ordering system (Hochfelder). The backbone of Papa Johns, the ingredients that make up an individual pizza, were particularly tricky to deliver because almost all the supplies have a shelf life of one week (Burnson).

Here, inventory ran the risk of being thrown out simply because the ingredients surpassed the expiration date, another unnecessary cost. In addition to the monetary loss, Papa Johns ran the risk of unsightly brand exposure: Papa Johns philosophy, Better ingredients. Better Pizza. Papa Johns insures quality ingredients, a promise that could not be jeopardized. With the company reputation at risk, Papa Johns recruited Manhattan Associates, a company specifically designed to help other companies manage their supply chain.

The solution proposed by Manhattan Resulted introduc[ed] new vendors and origin locations to Papa Johns (Trunick). This resulted in fewer miles driven, faster delivery to stores, and better quality control of inventory. Finally, the third issue Papa Johns needed to address dealt with tracking shipments. Just as Manhattan Associates was utilized for inventory needs, Papa Johns contracted Isotrak, a company that helps companies manage their transportation and field operations for their shipment tracking issues (Isotrak).

Tracking shipments is essential to damage control for Papa Johns. For example, if a carrier became stranded midway through a delivery, he needs to be able to give his exact location to the driver who will pick up the inventory. Remember, the shipments contain supplies that have a 7-day shelf-life, therefore speediness and efficiency are essential. Also, once a location is determined, an exact delivery time can be determined as well. If that time frame is too long for the store in need, then another store can lend supplies until necessary.

Isotrak facilitated this entire process and helped Papa Johns become much more time and cost efficient (Trunick). The issues that Papa Johns addressed led to a more efficient, and successful supply chain. Without the changes implemented, Papa Johns would not have been able to handle Super Bowl 2011 as well as they did. In fact, Papa Johns sold over 1 million pizzas on Super Bowl day! That means more than 2 million pounds of cheese and 350,000 pounds of pepperoni were shipped successfully over 300,000 miles, quite a feat for a company who had once struggled with basic deliveries.

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