Domino's to build two new supply chain centres as part of $120mn investment

By James Henderson
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 suppl...

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.

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“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.”

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