E-commerce supply chains are the most challenging – clearly Amazon is investing heavily in automation to realize efficiency. It will be interesting to see how Amazon Prime plays out given the additional stress it adds to the distribution system.
Great example! The sheer investment in building scale and clustering stores in dense areas has really paid off for Dominos in that it is able to deal with a large volume of orders trickling in from different channels, especially with online ordering really taking off for them. What I worry about is the culture that this marketing gimmick drives. For while executives claim that late deliveries are cut from marketing expenses, the impact is felt on store level profits and hence salaries, leading delivery boys to take risks as Carolina mentioned. In India I guess the financial need outweighs any concerns they may have of doing so but in more developed markets, this has gotten Dominos negative publicity. I wonder if they will be able to maintain this tagline going forward in all markets or like other fast food chains will only provide this guarantee in certain areas.
Zara is a brilliant case study in ops – glad you wrote about it! What amazes me is how they’ve managed to scale globally while keeping manufacturing largely centralized and have not bowed down to outsourcing pressures to cut costs. It will be interesting to see how they maintain this going forward.