Domino's to build two new supply chain centres as part of $120mn investment
Domino's has stated its intention to make significant investments to improve the efficiency of its U.S. supply chain, with plans including two new supply chain centres.
In an earnings call, CEO and Director Richard Allison, revealed that the fast food giant would be building another two supply chain centres in the United States over the next two years, although he did not state where the new facilities would be situated.
It would add to the new supply chain centre in New Jersey that is scheduled to open in the second half of this year.
In total, Domino’s expects to spend between $115mn to $120mn on supply chain projects in 2018.
In the call, Jeffrey Lawrence, EVP, CFO & Principal Accounting Officer, said: “The rapid growth of our U.S. business has driven record-level volumes in our supply chain centres.
“With volumes up more than 50% in just the last five years, it is time to accelerate our investments in supply chain capacity, both to serve current demand and to support our growth plans going forward.
“We are on track to open a new supply chain center in Edison, New Jersey later this year. We will also accelerate work in the second half of the year on two additional supply chain centers.
“In addition to these three new centre projects, we are increasing our investment to enhance capacity in several existing centres.”
Allison said that the company’s experience with establishing supply chain centres in its international markets would hold the company in good stead with its ambitions in the United States.
“It has been a number of years since we opened a new supply chain centre in the U.S.,” he said.
“And as we move forward in building out with that additional capacity, we're taking a lot of the learnings that we've gained over the last decade in the international business as we built dozens of supply chain centres, employing some more advanced production techniques and technology in those centres.
“So, we'll continue to look for opportunities to transfer learnings and best practices back and forth between our U.S. and our international businesses.”
Gartner: Women in supply chain at five-year high
Women now represent a greater percentage of the supply chain workforce than at any other point in at least the past five years, according to a recent Gartner survey.
The Women in Supply Chain Survey 2021, conducted by Gartner and Awesome, surveyed 223 supply chain organisations with more than $100m in annual revenue from February through to the end of March 2021.
- Women represent 2% more of supply chain workforce than in 2020
- Women now account for 42% of the workforce
- Number of women in exec-level positions declined by 2%
- Just 15% of top leadership are women (17% in 2020)
- 84% of organisations say COVID-19 did not impact efforts to advance women
It found that women now represent two per cent more of the supply chain workforce than in 2020, accounting for 42%, compared with 39% last year. Dana Stiffler, Vice President Analyst with the Gartner Supply Chain practice, says the impact of COVID-19 on supply chain was significant, though different to other sectors.
"Contrary to other industries, supply chain’s mission-criticality during the COVID-19 pandemic has meant that many sectors did not reduce their workforce, but rather continued to hire and even faced talent shortages, especially in the product supply chains," she said. "This resulted in many women not only standing their ground in supply chain organisations but increasing their representation in organisations. We also recorded a record number of specific commitments and supply chain-led actions and saw existing programs starting to pay off."
Supply chain still lacks women in executive leadership
But the elephant in the boardroom remains. Though the figures present a positive step towards greater diversity and gender equality at all levels, the number of women in executive level positions declined by two per cent in the past year. Women represent just 15% of the upper echelons of supply chain leadership. Gartner did however record a rise in women at all other levels of leadership.
The vast majority (84%) of organisations surveyed said the outbreak had no discernible impact on their ability to retain and advance women. But more than half (54%) admitted that retaining mid-career women was becoming increasingly difficult. A lack of career opportunities was cited as the biggest challenge to this, while other blamed a lack of development opportunities.
Despite these challenges, companies of all sizes are becoming broadly better at gender diversity. Around a third more said they had a targeted initiative focused on attracting women and advancing their careers.
Stiffler said a push towards measurable and formal initiatives is at least pointing in the right direction: “It's encouraging to see that the larger share of this jump was for more formal targets and specific goals on management scorecards. For these respondents, there is greater accountability for results — and we see the correlation with stronger representation and inclusion showing up in pipelines.”