Case Study

Domino’s Pizza Group Ltd

Domino’s Pizza Group Limited (DPG) is a wholly owned subsidiary of Domino’s Pizza UK & IRL plc which is quoted on the London Stock Exchange. DPG is the UK and Ireland’s leading pizza delivery company and holds the master franchise to own, operate and franchise Domino’s Pizza stores in these markets. The first UK store opened in 1985 and Ireland followed in 1991. There are now over 620 Domino’s Pizza stores in a growing number of towns and cities throughout England, Scotland, Wales and Ireland.

The majority of stores are owned by franchisees who are responsible for delivering the brand’s high standards to customers. Franchisees receive regular deliveries of everything they need to meet these standards, from flour, tomatoes and cheese, to the equipment they need in stores to make the pizzas. These supplies are provided from its head office in Milton Keynes, and depots in Penrith and Dublin.

The Challenge

Domino’s were using another route planning system to plan their deliveries.

On a busy day, they would fill a vehicle and then perhaps run another if needed, which might run half empty.

On quieter days vehicles might go out only 20-30% full.

Domino’s realised this was not a good use of their resources and wanted a system which would help them organise deliveries so that vehicles were always full, and routes were more efficient.

  • 3 depots: Milton Keynes, Dublin and Penrith
  • 3 deliveries a week to each of 625 restaurants
  • 40 routes per day
  • Fleet includes 8 articulated lorries and 25 other HGVs

The Solution

Domino’s implemented routing and scheduling software from the team at 121 Systems in April 2004 and was able to reduce their fleet by four vehicles. Mileage driven has diminished, as were the wage, fuel, fleet maintenance and distribution costs.

They achieved a return on their investment in only one year.

They have now been using the system for over 14 years, and they estimate it has saved them 30% of transportation costs and a great deal of valuable time.

They now send out vehicles which are invariably filled. They only use drivers when needed, and the routes taken are far more efficient. Staff and drivers welcomed the changes and adapted well to the new system without hesitation.

Domino’s are using the Pulse Mobile module from the team at 121 Systems and handheld units to collect information relating to stores, such as travel and service times, to fine-tune parameters in the solution to produce the most accurate routes.

Domino’s have also used 121 Systems strategic platform to strategically plan for new store openings, allowing accurate budgeting for store locations and also to explore suitable sites for new depots.

The dashboards from the team at 121 Systems has also been invaluable, allowing staff to locate the vehicles and to state times of arrival accurately, quickly and easily.

Historically would previously have taken numerous phone calls, often to mobile phones which were switched off or left unanswered.

ROI in just one year!

Domino’s were able to achieve a return on their original investment in software from 121 Systems in just one year.

30% savings Domino’s estimate that they had saved 30% per annum purely on their fleet management costs, compared to when they were using the previous routing system.

An invaluable tool to aid decision-making has proved to be a valuable tool for Domino’s to explore, plan and allocate budgets for new store locations.

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