Papa John’s Demand Driven Supply Chain

This is an excerpt of the original article. It was written for the November 2014 edition of Supply Chain Management Review. The full article is available to current subscribers.

November 2014

Supply chain managers are on the lookout for metrics that will allow them to put a number to their progress - or lack thereof. Welcome to KPI's that allow them to demonstrate the quantifiable value that they deliver. At the same time, Murphy's Law may intervene or they may be called upon to put out fires or come to the rescue and make good on the promises sales and marketing have made to customers - regardless of the cost. So, how do you measure success? I hope this month's issue and online bonus feature help you consider how you measure your progress.

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A pizza’s just a pizza, right? One pie is pretty much as good as the next? That kind of thinking does not exist at Papa John’s, the nation’s third largest pizza chain, according to the trade magazine Pizza Today. With nearly 4,500 locations around the world, including 3,200 stores in the U.S., and $3 billion in annual sales, the Louisville, Ky.-based company is constantly thinking about the next system or process that can help customers gets their pizza in a timely manner.

The company has experienced tremendous growth with locations in all 50 states and over 36 countries. No matter how big the company gets, Papa John’s is committed to its humble beginnings of using quality ingredients and quality people to build a better pizza and deliver a better pizza experience.

Papa John’s began in 2006 to transform its network of 10 dough manufacturing and distribution centers (called Quality Control Centers) through the use of better technology. The focus of this effort is to use point of sale demand information coupled with upcoming promotions to become more demand driven; done right, fresh ingredients replenish a network of 10 DCs in the right quantities for upcoming sales and are then delivered to its stores twice a week.

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