Pizza Hut Supply Chain Management

Pizza Hut Supply Chain Management


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The structure, history, and growth ofPizza Hut

In essence, Pizza Hut is one of the biggest restaurant chain in American and its global franchise known as Italian-American cuisine that include products like; pizza, pasta, side desserts and few other side dishes. In 2015, it has recorded company expanded its business to more than 15,000 locations across the globe. It has a subsidiary known as Yum! Brands, Inc., which is consequently as one of the prominent restaurant company in the world, Website: Pizza Hut.

Pizza Hut was establishedin 1958by two brothers Frank and Dan Carney, and its initialsite was Wichita, Kansas because they both studied in Wichita State University. In 1996, the first restaurant was introduced in east Mississippi in Athens, Ohio.

It has expanded its business across the different nations and current existence includes; Canada and Mexico, India and many different countries.

In 2014, Company announced to rebrand Pizza Hut in an attempt togrow its sales which had plunged in the preceding two years and they decided to focus more on e-business segment, expand menu to add more items like; crust flavours and eleven new specialty pies. Work uniform for workers.

Pizza Hut introduced its e-business segments after looking into the world trend that has been continuously upgrading through technology so Pizza Hut decided to focus more on e-business segment and then started carrying out business transactions over the Internet.

Company started using e-business to carry out many of its activities through internet its using e-commerce supply chain, Forest, Stephanie Anderson.

E-business website, the overall structure and major components and features of the website

Before e-business introduction, Company involved to perform all the activities using standing “channels” which includedsales people, cataloguesand retail stores.

In 2007, become first national pizza chain and added to Facebook

On website, included its press center where people can come read latest news or trends about pizza hut

Pizza Hut launched its first mobile app. in 2009 (iOS app).

Pizza Hut launched an exclusive XBox 360 appin 2013. This is where gamers can order directly through the gaming console.

Pizza Hut’s e-business website started focus on this e-commerce market segment and its website include the customer-oriented details as follows, Website: Pizza Hut:

It has included all the different products, menu and other relevant information for the customers

Sometimes, it also reflects or shows some discount coupons to attract the more customers and provide them attractive discount benefits and offers.

Included the information about its teams, worldwide locations, available Pizza Hut restaurants in locality, and other details.

Customers order processing system

Visualized images related its work, culture and social involvement in improving the society

Included the links and addresses of its social media interactions and trends

Customer Service details in which customers can find; Contact Us, Find a Pizza Hut, FAQs, Gift Cards, and Español

Also included Pizza Hut blog, Catering, International, Franchisee information, Corporate, Contribution Guidelines, Supplier Code, Diversity, and School Lunch

Organisational Sales Structure

Website’s Order Process Map

Supply chain management (SCM) considerations and business-to-business (B2B) and business-to-consumer (B2C) models that the e-business will want to consider

A strategic framework begins to evaluate the supply chain management (SCM) and find the opportunities in e-business segments i.e. SCM ought to be assessed first and in strategic perspective should find the solution for e-business models, Chopra, Sunil and Van Mieghem Jan A.:

Company’spreferred strategic position

Company’s strategic locus, and consideration on supply chain competences which are needed to sustain the strategy

Understand the supply chain competences and should be structured in a manner that can sustain business-to-consumer (B2C) and business-to-business (B2B) models for the e-business.

Pizza Hut’s e-business on Chopra, Sunil and Van Mieghem Jan A.:

Legal and regulatory requirements for SCM in e-commerce and traditional commerce

  • Increased direct sales opportunities using its own website and mobile application portals
  • Help to enhance its product visibility
  • Digital marketing play prominent role in showing different kind of ads to capture the customers
  • Social platforms trend help them to attract customers
  • Discount coupons, offers, and gift cards helped to increase online sales
  • Easy for customers to placed online orders and track them
  • Amplifiedconvenience by accumulating information
  • Lead to shorter response time
  • Effectiveresourcesallocation may improve cash flow
  • Increased choice of delivery options
  • Reduced facility costs such as; Site costs and processing costs for the business
  • Reduced inventory costs as; Reduce safety stock, Reduce cycle stock, and Postponing product
  • Controlled transportation costs both outbound and inbound

In essence, e-commerce is very similar to sale product like; traditional commerce systems but there are few differences in its supply chain. Each legal and regulatory requirements for SCM in e-commerce require to follow the technological guidelines while selling products, ethical consideration in social media platforms, code of conduct must be more efficient and transparent to understand, information must be more relevant and visibility should be high to check by customer, maintain product quality similar like traditional approach, company allow to approach customers directly, revenue opportunities and cost opportunities should be under the legal and regulatory standards and must ensure to maintain the quality of the products, Chopra, Sunil and Van Mieghem Jan A.

Potential ethical issues in e-business that differ from traditional business

  • There should be strong connection between SCM and ERP to meet the e-commerce regulatory requirements
  • Must follow the government provided standards and guidelines and company should also consider to include their own policies but as per regular e-commerce business norms
  • Must ensure e-commerce business management using; website, transaction, and customer relationship management
  • Maintain the sourcing, procurement, inventory, logistics, and distribution guidelines and requirements, Chopra, Sunil and Van Mieghem Jan A.

There are number of possible ethical issues in e-business as follows, Differences between e-commerce and traditional commerce:


  • Informationtheft: it is pretty easy for hackers to access customers or business’s information.
  • Low quality Services: itcan shipcounterfeit or damaged merchandises to clienteles, or fail to ship any merchandises at all.
  • Baits and Switches Mass e-promotion to the large population can impact targeted customers if it counts as spam
  • Theft of Intellectual Property and Copyright Trolls: It is usually much easy for e-commerce business that someone comes and cut-and-paste due to the fact thatit allows anyone to directly copy the original works of another.
  • Online marketing and Social Media: Viral of wrong video, picture, or endorsement directly impact on business.

Chopra, Sunil and Van Mieghem Jan A. WHICH E-BUSINESS IS RIGHT FOR YOUR SUPPLY CHAIN?. Retrieved from

Differences between e-commerce and traditional commerce. Retrieved from

Forest, Stephanie Anderson, “How Enrico Put the Spice Back in Pizza Hut,” Business Week, March 11, 1996, p. 72.Gumpert, David.

Website: Pizza Hut. Retrieved from

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