In most the time, the Domino’s Pizza has short term agreements with its suppliers. This the firm to rarely control the prices of its suppliers who alter the prices from time to time and consequently adversely influencing the prospect planning of Domino’s Pizza operations. Incase Domino’s Pizza does not act in response to price changes, the supplies may opt to supply Domino’s Pizza competitors after failing to secure a tender with Domino’s Pizza.
This may call for a Domino Pizza to seek supply contracts from other suppliers who may low quality inputs or stipulate higher per unit price of input. This makes the variable cost to fluctuate seasonally. Any feature having an effect on Domino’s input supply management unfavorably affects Domino’s Pizza functions too. Incase of bad weather, financial problems, surplus demand, and distribution problems; all these manipulate the value of Domino’s Pizza products and service. Any activity that can have any effect on the supply chain centers or the dough manufacturing centers harmfully affects Domino’s Pizza operations. According to the 2009 annual report, “Our domestic dough manufacturing and supply chain centers service all of our Company owned stores and over 99% of our domestic franchise stores” (Domino Pizza 2009 annual report).