Krispy Kreme’s Supply Chain

This article(subscription required) makes it sound like Krispy Kreme is using its supply chain as a competitive advantage.

The business model is pretty basic — glaze doughnut, box doughnut, sell doughnut. But scaling it globally is another matter altogether. Which is why, at Krispy Kreme, the job of chief information officer is far more important than it might initially seem. The North Carolina-based doughnut chain, which already has 300 stores in three countries, is in the midst of an international expansion, with another 53 outlets expected to open by the end of the year. To nurture that growth, CIO Frank Hood has built a supply-chain system that's the envy of his industry — with only a 26-person IT staff and a budget of less than 0.5 percent of the company's $491 million in revenue.

This company has phenomenal growth opportunities. When I was up in Philly a few weeks ago, there were 3 Dunkin Donuts within a half mile of each other, and no Krispy Kremes anywhere downtown. Most cities I have been to that have a KK only have one. Of course, like all products that have a cult following, growth may cause KK to become less attractive as they become more mainstream. But still, the more I read about this company, the more impressed I am. (And the more I wish I had the 2 million necessary to open a KK franchise)

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