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Authored by; SUMMAYA SHARIF and team (02-111141-222.student@bahria.edu.pk)

SUPPLY December 15

2016
CHAIN
REPORT ON
PIZZA HUT
This report will answer some of the most FAQs of the
organizations nowadays about supply chain management which SUPPLY CHAIN
include the questions about the SC model, Achieving Strategic fit,
Forecasting in SCM, S & OP planning, Distribution network 7 MANAGEMENT BY
Configuration plus the recommendations for helping the
organizations in outdoing their competitors efficiently and
MUJTABA
efficaciously. Pizza hut, Pakistan is the organization that’s been HUSSAIN
chosen for delving, pragmatically, in to the depth of our study.

©BAHRIA UNIVERSITY, KARACHI CAMPUS

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ACKNOWLEDGEMENT

I’m the student of BBA 6E, BAHRIA UNIVERSITY and I’m thankful to the
Almighty Allah who, in His infinite mercy, has guided me to complete this
term report. I also wish to thank my Parents for their personal support
and attention-that inspired me to go my own way. I’m blessed &
honored to have such parents and grateful for them that they gave me a
chance to prove myself.

Second of all, I would like to present my deep and heartily gratitude to

my Supply Chain Management’s Professor; SIR MUJTABA HUSSAIN; who
not just asked for such an informational project; which made me highly
conversant with new, enlightening and pragmatic information; but also
gifted me with preciously valuable guidance and support for the
accomplishment of this report.

Lastly, I would also, gladly, like to present my beatific thanks to Bahria

University, Karachi Campus that it provided me a platform via which I
could get such an intriguing experience that’s a sine qua non for
becoming sagacious, MR. ABDUL WAHAJ, for acquainting me with as
much information as possibly convenient for him and my team for
helping me reach the completion by taking the responsibility of last 5
headings. 

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Table of Contents
INTRODUCTION..........................................................................................................................................................................5
VISION .............................................................................................................................................................................................6
Mission statement .....................................................................................................................................................................6

SUPPLY CHAIN OF PIZZA HUT............................................................................................................................................7

Direct suppliers: .....................................................................................................................................................................7
Indirect suppliers:..................................................................................................................................................................7
 Meat market (Their owns cattle).....................................................................................................................7
 Vegetable market...................................................................................................................................................7
 Sauces companies..................................................................................................................................................7
PIZZA HUT’S WAREHOUSE AT KARACHI, PAKISTAN:..............................................................................................8
Supply chain performance: ...................................................................................................................................................8
AN OVERVIEW OF SUPPLY CHAIN;...................................................................................................................................9
OBJECTIVE OF SUPPLY CHAIN: ........................................................................................................................................ 10

Process view of supply chain: ........................................................................................................................................... 10

SUPPLY CHAIN MODEL OF PIZZA HUT, Karachi ..................................................................................................... 10
ACHIEVING STRATEGIC FIT................................................................................................................................................ 11
HOW IS STRATEGIC FIT ACHIEVED? ......................................................................................................................... 12
1. Step 1: Understanding The customer & Supply Chain Uncertainty .......................................... 12
2. Step 2: Understanding the Supply Chain Capabilities:..................................................................... 13
3. Step 3: Achieving Strategic Fit...................................................................................................................... 14
CHALLENGES TO ACHIEVING & MAINTAINING STRATEGIC FIT .................................................................... 14
11.. Increasing Product Variety & Shrinking Life Cycles;.......................................................................... 14
22.. Globalization & Increasing Uncertainty................................................................................................... 15
33.. Fragmentation of Supply Chain Ownership:.......................................................................................... 15
44.. Changing technology & business environment .................................................................................. 15

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55.. The environment & Sustainability .............................................................................................................. 16

Challenges faced by Pizza Hut ......................................................................................................................................... 16
FORECASTING........................................................................................................................................................................... 16
Initial preparations: ........................................................................................................................................................... 17
Strategy of Pizza Hut:....................................................................................................................................................... 17

SALES AND OPERATIONS PLANNING.......................................................................................................................... 17

Innovation and Strategy review – .............................................................................................................................. 18
Demand Planning – .......................................................................................................................................................... 18
Supply Planning.................................................................................................................................................................. 18
Financial Integration – ..................................................................................................................................................... 18
DISTRIBUTION CHANNELS ................................................................................................................................................ 18
CONCLUSION ........................................................................................................................................................................... 19
RECOMMENDATION............................................................................................................................................................. 20

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INTRODUCTION
The Pizza Hut story begins in May 1958. Dan and Frank Carney opened their 550-squarefoot pizza restaurant in
Wichita, Kansas. Dan and Frank, with friends Richard Beemer and John Bender, made the pizza themselves. Frank
rolled the dough with a rolling pin. Richard tossed the dough in the air from the pie tin. Dan filled the unbaked crust
with sauce. John flipped the pie from the tin during the baking process. Dan Carney recalled, "The people were
enchanted with the product, watching us tossing the dough over our heads. They were really enjoying themselves…."

The Carneys created an innovative, high quality, engaging, informal eating experience in a friendly neighborhood
restaurant. Pizza Hut became a popular place with the teenage and college crowd. Pizza Hut attracted families that
enjoyed a night out eating a meal that they would not be having at home. After the families left, Pizza Hut
transformed itself into a hangout for college-age kids. Having a good time was an essential part of Pizza Hut. The idea
caught on. A second Pizza Hut opened in December 1958 in downtown Wichita. By 1963, there were forty -two Pizza
Hut restaurants.

The first Pizza Hut Restaurant in Pakistan was opened in December 1993 and took the culinary scene by surprise.
From that time onwards, the brand has contributed heavily towards the development of the society as a whole. It is
responsible for creating job opportunities for the youth of the country both directly as well as indirectly. Furthermore,
Pizza Hut during the core of its existence has gradually aided in the development of various local suppliers who as a
requirement have to supply food staff equivalent in quality to the international food standards. In this regard, our
restaurant chain has proved to be a major contributor towards the progress of the Pakistani food industry as a whole
by bringing it to a point where they can now look forward to supplying their items to other chains as well as the
international market.

Pizza Hut, being the first International franchise to enter the Pakistani market has set new standards of dine-in
restaurants and quick delivery of oven hot pizzas and has since then enjoyed tremendous brand loyalty from its
customers.

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VISION
“To make the people know that for all the eating items they desire to eat can be made
available in minimum time without our effort excluding money”

Mission statement
“To be the best pizza for every pizza occasion”

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SUPPLY CHAIN OF PIZZA HUT

Supply chain of pizza hut starts from the suppliers of pizza hut. There are many suppliers of the
pizza hut but we divide them in two parts.

 Direct suppliers
 Indirect suppliers

Direct suppliers:

There are three direct suppliers of Pizza hut named as Pepsi Company, Buns, First mineral water

Indirect suppliers:

Pizza hut owns many indirect suppliers for the materials they want like Cutlery, meat, vegetables,
sauces etc.

 Meat market (Their owns cattle)

 Vegetable market

 Sauces companies

Description:
Pizza Hut demands the direct material on daily basis. On every day end pizza hut manager
forecasts the demand of next day and gives the order to the suppliers than next day morning
the goods come to the Pizza hut. All indirect material i.e. vegetables, sauces, meat, cutlery and
all material is purchased by the ware house. The material comes from warehouse by the trucks.

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Then Pizza hut takes the orders from its customers who come to pizza hut and also take the
orders from the delivery service there is a specialized system in pizza hut which is connected to
the delivery orders service so that 1 order list at a time come in the kitchen and at the manager’s
table also. Than production of pizza according to order starts and they deliver it within 45
minutes at the door of customer and in pizza hut they just take 20 minutes to prepare the pizza
and serve it to the customer.

PIZZA HUT’S WAREHOUSE AT KARACHI, PAKISTAN:

Its warehouse is situated in Bahadurabad, Karachi, Pakistan. The appellation of which is
commissary. In this warehouse they have indirect material. Pizza hut has also warehouse of
customer’s records.

Supply chain performance:

Pizza hut has worked a ton to build the responsiveness towards customer’s request. Couple of
years back they had a few protestations from the clients, who requested for home delivery
service .Actually the pizza hut guarantees that any place you live, your area does not make a
difference, we convey your request within 45 minutes to you. For this reason they have
composed their own software system at which they spare the information (name, contact
number and address) of clients who call at their call focus to request pizza and appreciate the
home delivery benefit. Pizza Hut now tracks not only telephone orders, however online requests
and can track progressively what ads individuals are watching. After accepting the request from
client, pizza hut let go the bicycle rider. The delivery boy has to deliver pizza at the allocated
time because this increases their responsiveness.

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AN OVERVIEW OF SUPPLY CHAIN;

Supply chain contains all the organizations/firms involved directly or indirectly in
accomplishment of the customer’s request. Ergo it includes not just the suppliers and
manufacturers but also the retailers, distributors, transporters, warehouses, and the customers.

Customers are the vital part of supply chain and the fundamental purpose of supply chain is to
satiate their needs in a way that beatifically delights them and generates profit for the firm too.

Supply chains are actually a network; a network of manufacturer, supplier, distributors, retailers
etc. and ergo supply network or supply web is the best sobriquet for a supply chain which
felicitously delineates the structure of most supply chains. Following are the fundamental stages
of a supply web;

1. Customers
2. Retailers
3. Wholesalers/Distributors
4. Manufacturers
5. Component/raw material supplier

Each of the above stages is linked through the two-way flow of product, information, and funds
that may be managed by a single stage or an intermediary.

Supply chain management denotes the amalgam of 3 main streams of knowledge and practical
experience, these are;

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1) Sourcing, Procurement, and Supply management; functions arising in the area of

obtaining/purchasing.
2) Material management: The functions that materials management erstwhile included are,
inventory management, stores management, warehousing, stock keeping, and
scheduling but it now includes production planning and production control as well to
advance in to the extended materials managements. With later inclusion of order
processing it came to be known as integrated materials management
3) Logistics and distributions: It the stream of supply chain management that plans,
implements, and controls the efficacious and efficient, forward and reverse, flow and
storage of goods and services, and related information between the point of origin and
the point of consumption in order to meet the customer’s requirements.

OBJECTIVE OF SUPPLY CHAIN:

The main objective of supply chain is to maximize the supply chain surplus to the optimum level.
The supply chain surplus can be found via subtracting Supply Chain Cost from Customer value;
hence elucidating it clearly that the main aim of supply chain is to cut off the cost while
enhancing/increasing the value to the customer.

Process view of supply chain:

Supply chain includes the following two fundamental processes:

11.. Cycle view: All of the processes in a supply chain are divided in to a sequence of cycles,
and each process is performed at the crossing point between the two successi ve stages
of a supply chain.
22.. Push/pull view: Push view illustrates that the supply chain processes of stock keeping,
warehousing, etc. are done in anticipation of the customers or on the forecasted data,
while the pull view is on the contrary of the push process; it illustrates that all of the
supply chain’s processes are done in reaction to the customer demand.

SUPPLY CHAIN MODEL OF PIZZA HUT, Karachi

Since Pizza hut follows the Push/Pull process of supply chain and hence the supply chain model
of Pizza Hut would be:

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Supplier Manufacturer Distributor Customer

Supplier: The suppliers of Pizza Hut include the ones who supply the materials to store in
commissary (their own warehouse), they are:

11.. Meat sellers from meat markets

22.. Vegetable sellers from vegetable markets
33.. Sauce companies

Manufacturer: Pizza Hut is one and only manufacturer of its own products that are unique
in their own way.

Distributor: Pizza Hut has taken care of the distribution services as well, that includes the
Pizza Hut’s logistic service of delivering the take away orders within 30-45 minutes.

Customer: The customers of Pizza Hut include everyone, from children to aged people to
geriatrics.

ACHIEVING STRATEGIC FIT

Achieving strategic fit basically means that all of the competitive strategies-the ones that define
the congeries of consumers’ and customers’ needs to satisfy them in the way that their
competitors are not doing or simply the result of implied uncertainty-and the supply chain
strategies are all queued on the main goal of the company.

To further the supply chain strategy; it defines the nature of obtaining the raw materials,
transporting them to & from company, manufacturing the products or operations to deliver the
services, and the distribution of the finished goods (products/services) to the customers and the
consumers, To be more succinct it can be said as the decision of going responsive or efficient.

In order to avoid rambling in the market it is crucial for the firms to align their strategies with
the main goal(s) and objective(s) of the firm; ergo, the achievement of strategic fit holds
immense importance for a firm to stand deep rooted in the market.

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For achieving strategic fit a firm must ensure that;

1. The functional and competitive strategy are fitting together to establish a synchronized
strategy.
2. All and every function in the firm is felicitously putting together the resources and the
processes in order to implement the strategies efficaciously.
3. The overall supply chain’s design and the role of each stage thereof is synchronized
together to support the supply chain strategy.

HOW IS STRATEGIC FIT ACHIEVED?

In order to achieve a better strategic fit, firms must ensure that the supply chain’s
capabilities are queued together in supporting its abilities to satiate the consumers.

The three fundamental steps to achieving strategic fit are;

1. Step 1: Understanding The customer & Supply Chain Uncertainty

Since consumers’ needs, wants and demands are pretty uncertain ergo an ambiguity in the
supply chain becomes apparent. A firm must acknowledge and understand to the whole the
uncertainty of demand plus the uncertainty that rises in the supply chain due to that in order to
satiate the consumer needs efficiently in an efficacious way.

Talking on a pragmatic level, Pizza hut is also in the race of understanding its consumers and
their fluctuating demands so well that it’s able to understand the resulting fluctuations in the
supply chain in order to serve their consumers with a way that leaves them feeling delighted.
Pizza hut incessantly keeps peeking through the curtains of minds of consumers during
Ramazan, Eid, and other occasional/non occasional holidays/events; to become their customers’
first choice; by coming up with new, tempting and alluring offers and tightens its supply chain
processes when the demand raises; e.g, the material procurement is increased, serving time is
reduced in order to swiftly serve the consumers waiting in the queue etc., and even keeps
offering varieties in their products, service level-and even keep asking for feedback to enhance
that, and keeps innovating the products in accord with the consumer desires to lure the
consumers and outdo their competitors for standing deep rooted in the market.

That is how Pizza hut maintains the quantity of materials needed to procure in accord with the
consumer demands, response time in accordance with the consumer’s tolerance level, the
variety of products needed, the service level required, the price of the products, and f inally the
desired rate of innovation in the products.

When the implied demand uncertainty is considered; that is the augmentation in the level of
uncertainty of demands due to the value addition-that a firm once offered-being offered by the
competitors as well; then Pizza hut is keen on incessantly offering offers like no one does to lure

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its consumers and to keep on working on its supply chain strategies such as maintaining the
product level via felicitous procurement strategy, ensuring the transportation of the materials to
every branch of it so that no any branch lacks in serving the consumers, maintaining its logistics
so that every take away orders are served on time-no matter what nearest branch the consumer
has ordered to etc., and training its employees to serve their consumers in a way that is
appealing and luring.

2. Step 2: Understanding the Supply Chain Capabilities:

Since achieving strategic fit is for serving the consumers in a way that leaves them beatifically
satiated, no matter the uncertainty in the demand that a firm faces ergo, the firms must go for
fulfilling the demands it has targeted, in the best possible way, even in an uncertain
environment.

The characteristics of supply chain that affect a firm’s responsiveness and efficiency are henc e
crucial to understand, these include the following;

1. Response to wide ranges of quantities demanded

2. Meet short lead times
3. Handle a large variety of products
4. Build highly innovative products
5. Meet a high service level
6. Handle supply uncertainty

All of the above characteristics result in an augmented demand uncertainty but all of these is
directly linked to the responsiveness of the firms. Since the responsiveness increases the cost
ergo it reduces the supply chain efficiency. That is why a firm has to compromise on one thing if
it wishes to achieve the other. Albeit both satiate the consumers, some conditions are
apparently applied like there comes a time when a firm has to prioritize being responsive over
being efficient and bear costs-sometimes high while sometimes the situation is upside down
thereof.

Pizza hut has done and is in an incessant process of doing better each day for outdoing its
competitors and serve its consumers with the best possible way. It has ensured that:

11.. The response to wide ranges of quantities demanded (particularly on some occasions) is
to or before the time promised (on occasions or for take away),
22.. The orders meet short lead times, so the consumers don’t end up feeling frustrated-
whether they’re dining or have ordered for their take away service.
33.. The capacity is on an optimum level to bear/handle a large variety of products-to serve
the consumers as swiftly as they can when needed.

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44.. Innovations in the products are offered to the consumers as augmented products more
often.
55.. Every branch meets a high service level, is open to feedback and flexible enough to
change to lure the consumers.
66.. It handles the supply chain uncertainty-be it implied or basic-immaculately, and tries
hard to be impeccable in achieving what they targeted.

Albeit, Pizza hut sweats blood in making sure that it stands on an optimum level of being
responsive, it does not mean that it always compromises on the ‘cost’ part. Pizza hut owns a
warehouse naming “Commissary” and has good ties with the suppliers of it to ensure that the
cost is low enough to bear the future expenses. Moreover it also goes for higher margins in their
pricing strategies to balance out the expenses and maintain the profitability. This shows that
Pizza Hut understands its supply chains capabilities and knows how to take the best use of it.

3. Step 3: Achieving Strategic Fit

At this lag end of achieving strategic fit, firms ensure that the degree of supply chain
responsiveness is incessant with the implied uncertainty and hence the final goal is targeting ,
promising and delivering high responsiveness for high implied uncertainty but high efficiency
for low implied uncertainty.

Pizza hut being the one facing beaucoup challenges thrown by its numerous competitors like
16th street pizza, pizza today, pizza max, Domino-being the main competitor, California pizza
etc., faces a lot of implied demand uncertainty; where consumers immediately swerve the
direction if something more innovative, of good quality, and worth going for arrives in the
market of delicious pizzas and ergo it has to keep on trying hard to lure the consumers with
being as much responsive as they can.

The reason & characteristics explained above are enough to position Pizza Hut on highly
responsive level on the responsiveness spectrum and hence it stands on the II level of the
supply chain responsiveness; with the manufacturer absorbing most of the implied demand
uncertainty and the supplier absorbing least thereof. Hence I can conclude that Pizza hut is
achieving the zone of strategic fit because it’s working in accord with the implied uncertainty
level in the environment.

CHALLENGES TO ACHIEVING & MAINTAINING STRATEGIC FIT

11.. Increasing Product Variety & Shrinking Life Cycles;
Some companies keep on acquainting the world with the new, technological, innovative, and/or
attractive/stylish products while losing on the process of elimination of the older/obsolete ones-
this shrinks the life cycles of products and hence cuts down the opening of opportunity to

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achieve the zone of strategic fit; as high level of responsiveness is demanded for achieving fit
and but the firm’s busy in introducing new varieties and is left with equal to no cost for
spending on the old/obsolete products.

The best policy to handle this challenge efficaciously, is to design product platforms with
common or similar components and keep up the tailored supply chain that provides the
solution of desired level of responsiveness in accord with the demand uncertainty for handling
the new product and other low-volume products while a cost-minimized solution for the
successful high-volume products. This helps in achieving the optimum efficiency level while
providing the felicitous level of responsiveness to each segment/product.

22.. Globalization & Increasing Uncertainty

Since the era has gone extremely uncertain and fluctuating in terms of all the factors influencing
supply chain performance ergo, the demand has peaked out the level of uncertainty as well.

Ergo, avoidance here won’t help out any firm but will surely jeopardize it. The best way is to
design a supply chain model by taking these uncertainties in deep consideration in order to
handle these or learn to handle these.

33.. Fragmentation of Supply Chain Ownership:

With the rapid changes in the technical and modern era, many firms have now learned to opt for
a new ownership supply chain design which enables them to take the advantage of the
capabilities of the suppliers and customers which they lack on, but since everything has a con
attached to it ergo, it also has a bad side that is making the alignment and management of
supply chain more complex.

Since the chain is broken in to many owners with differences of interests, opinions and policies
ergo it is very hard to communicate or coordinate. This can give rise to consequential and
substantial problems including what many authors have indirectly claimed as democratic issue;
that is each stage focusing on their own objectives rather than the whole chain’s; which results
in the disastrous reduction of total supply chain profitability.

The only solution to this problem is to keep all the member of a supply-chain aligned, in order
to gain the strategic fit.

44.. Changing technology & business environment

It elucidates the technological changes and the uncertainty of consumer needs which changes
the environment as well and hence a strategy that may have been a best fit in one environment
end up becoming the worst one. Ergo, firms need to incessantly keep working on their supply
chain strategy and come up with something new, innovative, and luring to lure all the customers
and satiate their needs in the best possible way.

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55.. The environment & Sustainability

This elucidates the issue of environment & sustainability and that the firms have both
opportunity to hit and a threat to handle/lessen in the form of these issues. Opportunity in
sense that they can add an extra value to the customers and reduce their costs along this
dimension by a felicitous packaging while threat defines the increased level of coordination
demanded, by a tad greatest opportunities, across different members of supply chain. In order
to lessen this threat the firms can design a supply chain strategy that involves the overall supply
chain in identifying and hit the opportunities for an improved sustainability.

Challenges faced by Pizza Hut

The challenges faced by Pizza Hut in achieving strategic fit include;

1) Globalization & increasing uncertainty

2) Changing technology and business environment
3) The environment & sustainability issue

Pizza Hut has been sweating blood since its inception to lessen these issues to their minimal
possible level and is proud to publicize its success in achieving this. Globalization and increasing
taxation has severely affect Pizza Hut but they still managed to cope with these uncertainties by
their interesting deal offers, increasing service level, while reduced lead times, and by coming up
with some of the most deliciously innovative products to keep the customers lured.

In such a highly competitive market, where Pizza Hut faces a lot competition and differentiations
that may lead to outdoing Pizza Hut but it stands firm in the market of Pizzas by its counter
strategies of coming up with a higher quality innovative products, service etc.

Thirdly, environment and sustainability is an issue that every organization has encountered in
this era and so has Pizza Hut, but it deals with this issue efficaciously by introducing the boxes,
in which the pizza is served in the take away orders, which are environment friendly and do not
harm our precious nature in any way.

FORECASTING
Pizza Hut estimates demand on day by day bases. Demand estimation depends on past
demands last month and last year Demand estimation is done through the team of pizza hut
which includes managers and the directors of the specific outlet. They access clients request for
pizza, both, the home delivery \and those clients who used to eat hotel.

This is obvious that pizza hut also had to see their competitors in the market to predict the
demand for e.g. a new outlet of competitor is been launched with a great discount deals. Sales

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increases in the occasions or festivals in Pakistan like on Eid-ul-fitr. So they estimate demand of
last year’s data that how much demand was there at last year Eid. Somehow weather al so affects
the demand of pizza like in winters demand increases as compared to summers.

Initial preparations:
After forecasting demand they have to prepare Dough, toppings, dips , salad etc. so that
whenever customer places order so they can provide them as soon as possible so that they
don’t have to wait long for their order. The basic purpose of forecasting demand is to make
available things for customers.

Strategy of Pizza Hut:

Pizza hut works on JIT they order direct supplies according to demand. For just in time strategy
they prepare themselves few hours before.

All team members are prepared before peak hours with vegetables required for toppings. They
keep things ready in the line. They are ready with different patties pizza base). During peak hour
they provide the pizza making time of 15 – 20 minutes. In normal case they provide the pizza
making time of 10 – 14 minutes.

SALES AND OPERATIONS PLANNING

S&OP meeting brings officials from all major operational divisions – deals, advertising,
materials/acquirement, assembling and transportation. In pizza hut Month to month S&OP
gatherings are a basic leadership action that sets the general course for the organization. In
pizza hut the initial phase in S&OP is to check demand, is needed to manufacture according to
the demand. The advantage streams emerging from develop and appropriately organized S&OP
procedures are very much archived: stock is diminished, limit is better used, throughput is

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expanded, income streams turn out to be more unsurprising, new items are presented
consistently, and organizations see enhanced income and benefit. Business pioneers who utilize
S&OP regularly feel as though they have a superior handle on-or control over-their operations.

A number of tasks need to be completed prior to each S&OP meeting and the best possible
alternatives in these problems. This includes:

Innovation and Strategy review – impact of New Product in the market

Demand Planning – includes base-line demand as well as demand sensing and demand
shaping activities

Supply Planning – monitor inventory levels and production capabilities

Financial Integration – ensure demand planning, supply planning, and inventory

optimization meet company financial objectives and are within working capital constraints

DISTRIBUTION CHANNELS

The type of distribution channel used by Pizza Hut is the direct channel. The direct channel is
successful when there is an extremely large market that is geographically dispersed. The direct
channel is also useful when there are a large number of buyers, but a small amount purchased
by each.

Pizza Hut uses three different methods of selling its products directly to the market.

 The first method of distribution used by Pizza Hut is delivery. Customers can call Pizza Hut
ahead of time, place an order, and the order is delivered to the customer’s home.
 Another method of distribution is for customers to dine-in. Customers can go to the nearest
Pizza Hut, place an order and either leave with the order or eat at the restaurant
 The third method of distribution is online ordering. Customers can now go on the Internet
and place an order.

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CONCLUSION
As a conclusion, Pizza Hut is a great company in managing their productivity. Pizza Hut is the
largest pizza restaurant corporation in the globe according of both the number of outlets and
the percentage of market share that it has.

Pizza Hut company has a great demand in the market. There are many factors that af fect
demand of Pizza Hut. Namely, price of other goods (substitute), customer preferences and
tastes and consumer income. Price of other goods affects demand of Pizza Hut. Consumer will
find other alternative if price of pizza in Pizza Hut increases. Thus demand of Pizza hut
decreases. Secondly, customer preferences and tastes also affect demand of Pizza Hut. If Pizza
Hut couldn't satisfy consumer tastes, the demand of pizza Hut will drop as consumer will find
other alternative that satisfy them. Next factors that affect demand of Pizza Hut are consumer
income. Other things being equal, when income increases, consumer’s demand for more goods
and services will increase. Thus, when consumers’ income increases, the demand for Pizza Hut
will also increase. Taxation also affects demand of Pizza Hut. The higher the taxes that charged
in Pizza Hut, the lower the purchasing power of consumer. Thus this decreases the demand for
Pizza Hut.

Pizza Hut tends to have an elastic demand. Elastic demand happen when there is a small change
in percentage of price of a product will lead to a larger percentage change in quantity

S U PPLY CHAIN REPORT ON PIZZA HUT | S UPPLY CHAIN MANAGEMENT BY MUJTABA HUSSAIN
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demanded. As a proof, consumer will not consume Pizza Hut if the price increases. Consumer
will try to find another alternative. Therefore, it decreases demand of Pizza Hut.

It is clearly shown that from the survey that Pizza Hut has many loyal customers. This is proved
when the survey shows that customer satisfaction is at the good parameter for quality, price,
store, ambiance and service. This also can be proved when 11 out of 14 people agree that eating
Pizza Hut is value for money. The suggestions we can provide to Pizza Hut in improving their
services are to include more new dishes to their menu so that customers would have more
choices to choose. Pizza Hut also should regularly make a discount such as by creating a combo
meals and giving discount vouchers.

RECOMMENDATION
The supply chain strategy of Pizza Hut is very good but there area of supply is so small. They are
providing their products only in big cities of Pakistan. There is so much demand in small cities
like Sargodha, Gujarat, Sialkot, and Gujranwala. There other competitors are moving in these
cities so if they will not make there outlets there they will lose competitive advantages.
The other thing is there prices are high if they will lose their prices poor people will also like to
buy there pizzas and the house hold trend of food will change after some ti me, people will like
to buy food rather than making it at home.
After implementing these strategies they can get:

 Maximum return on their investment

 Value proposition
 Expands their business growth
 Increase in sales

S U PPLY CHAIN REPORT ON PIZZA HUT | S UPPLY CHAIN MANAGEMENT BY MUJTABA HUSSAIN