Marco's launches new distribution service

Jan. 13, 2010
Toledo, Ohio-based Marco's Pizza has announced the launch of a distribution service, located in Maumee, Ohio. Marco's Pizza Distribution serves more than 100 Marco's Pizza locations in the Midwest and will add stores and territories over time. Additional distribution centers are planned as Marco's continues to grow.
"With more than 900 new stores signed and in development, it is crucial for Marco's to maintain product quality and consistency in every store as the company expands," said Jack Butorac, president and CEO of Marco's Pizza. "MPD will help us accomplish this efficiently and also cost-effectively for our franchisees."
Don Vleck, Marco's Pizza vice president of purchasing and president of MPD, outlined three distinct benefits to franchisees.
"MPD will help protect product quality," he said. "Only items approved by Marco's own product team will be in our warehouse and on our trucks. MPD is also able to provide increased service to Marco's Pizza stores because we only have one customer. Improved delivery service means that store operators can spend more time focused on sales, quality and efficiencies."
MPD will also offer franchisees a chance to improve profitability, Vlcek said.
"A distribution company with a single focus can achieve greater cost efficiency, monitor all product costs, purchase larger volumes at better prices and manage inventory levels to take advantage of predicted fluctuations in commodity markets," he said.
MPD will publish its P&L statements quarterly and provide rebates to participating franchisees at the end of the year, Butorac said.

Topics: Franchising & Growth , Operations Management

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