What are restaurant supply chain solutions?
Restaurant supply chain solutions are a set of tools and services that help restaurant operators manage their supply chain more effectively. They can include things like inventory management, supplier relationship management, and transportation management.
How Restaurant Supply Chain Solutions Can Get You Quality Goods For Less
What's a Restaurant Supply Chain?
A restaurant's supply chain is the complete process that a restaurant goes through to get food and ingredients from vendors to run its operations and serve customers. The supply chain begins with the farmers and food producers who grow the food, and ends with the customers who consume it. In between, there are many different steps involved in getting the food from farm to table, which is forms the restaurant supply chain. This is essentially a network of vendors, suppliers, and distributors who work like clockwork without missing a step to get the supplies flowing to restaurants and other foodservice businesses.
A restaurant's supply chain is a complex process that involves many different people, logistics and businesses. But ultimately, the goal is to get delicious food from the farms to the table as efficiently as possible!
What is Supply Chain Management?
Supply Chain Management (SCM) is the process of actively managing the flow and network of procuring and reaching supplies to the endpoint, which is a restaurant in this case. Supply chain management involves coordinating and integrating all supply chain activities, right from the food producers to the suppliers and the customers. This includes procurement, manufacturing, logistics, distribution and final delivery to the customer at the restaurant.
Chain solutions enable organizations to create links (or chains) between each stakeholder, such as distributors, vendors and buyers. SCM solutions also give restaurants greater visibility of product movement at every stage of the supply chain, so they can make informed decisions to improve efficiency and optimize performance. By better managing the flow of goods and information throughout the supply chain, organizations can reduce costs, improve quality control, and increase customer satisfaction.
Supply chain solutions involve five core processes, which are planning, sourcing, manufacturing, delivery, and returns. While planning involves preparing a blueprint of how each product or service moves along the supply chain, sourcing involves choosing the vendors and partners you want to procure your goods from. Manufacturing is the part where products are processed and manufactured into finished goods ready for supply, while delivery and logistics concern shipping and managing customer orders and delivery schedules to get the final products to the customer or restaurant. The final process is handling returns, where some of the products may need to be returned due to defects and faults. This too needs a network and chain that will work in reverse to the entire procurement process.
We're now going to list 5 ways that supply chain management can profit a restaurant.
Sometimes restaurants run into losses because of an inefficient supply chain.
Efficient supply chain management can profit a restaurant in many ways. Here's how . . .
Supply Chain Management Benefit No. 1 - Cost Reduction
The first and most important benefit of an efficient supply chain management system is a reduction in the cost of goods, which helps boost profits. There are a number of ways in which these costs can be reduced. For example, seasonal foods such as mangoes and watermelons are only available for a few months a year. Your supply chain management should be such that you procure these items in bulk when they're in season, or at the end of their season when the prices are lower. And then you store these items well so that you can continue to use them even when they're not in season. While this will reduce your procurement cost, it will enable you to increase your menu prices because you're serving an item that's not easily available. Price adjustment to meet demand, and early procurement is one of the primary benefits of a smooth and efficient restaurant supply chain.
You can also negotiate better supply deals with suppliers, look for cheaper alternatives to ingredients, and improve inventory management with the right supply chain solutions. By reducing the cost of goods, speedy supply solutions and on-time delivery, restaurants can increase their margins and profits manifold.
Supply Chain Management Benefit No. 2 - Streamlining
A competent restaurant supply chain also increases the overall efficiency of a business. From streamlining procurement, receiving, delivery, and other logistics, to managing returns in case of product flaws, a robust SCM system can do it all with ease. When these tasks are carried out without glitches, it causes no delay in the chain operations and reduces the operational costs. Slight delays in any of the stages, be it planning, procuring, or delivery can lead to huge losses for a restaurant.
When the supply chain streamlines the ordering and receiving processes, restaurants can exercise better stock control and prevent inventory losses. In case of special events, festivals or carnivals when restaurants expect higher footfall and sales, accurate Demand Planning can help you make the necessary alterations to your restaurant supply chain. This will not only help you procure goods at regular rates instead of last-minute, high-value purchases, but you can also optimize your operations and plan processes with ease. Streamlined operations will help you keep your suppliers and vendors happy too, considering that they form one of the key links in your chain. By sharpening operational procedures, restaurants are sure to improve their bottom-line.
Supply Chain Management Benefit No. 3 - Better Service
Customer service is paramount for any service business, particularly the foodservice industry. Timely and accurate supplies ensure just that. A good supply chain management system also helps restaurants improve their customer service. By ensuring timely supplies, minimized delays and fewer product defects, restaurants can optimize their operations and meet customer demands on time. When vendor supplies are on time, restaurants are less likely to fail on delivering and serving their customers. And by improving customer service, restaurants will be able to increase repeat sales, drive up customer satisfaction, build a good reputation in the market, and help their business flourish.
There are several supply chain management solutions in the restaurant market.
How do you pick the right one for your business?
Supply Chain Management Benefit No. 4 - Better Quality
With proper supply chain management, restaurants can improve the quality of their food products by ensuring that ingredients are fresh and duly meet the food safety standards set by authorities. In addition, supply chain management can help to ensure that the finished products meet customer expectations in terms of taste, appearance, quality, and nutrition. Any delays and glitches in the supply chain solutions can lead to poor quality products, expired or unhealthy food supplies, which can be dangerous for a food business. Not only will this put public health at risk, but also the prospects of the business.
Supply Chain Management Benefit No. 5 - Inventory
Efficient supply chain and order management gives better control over the food inventory at a restaurant. And managing the stocks in an efficient manner is as important as getting the right supplies through the right chain solutions. Streamlined restaurant supply means better inventory control and less wastage. When restaurants reduce their wastage to a minimum, they tend to improve their cost efficiency and profits. Also, when you are aware of the purchase orders and expected date of delivery, you are in a better position to plan your days accordingly and avoid hurried decisions.
Too many unnecessary supplies can lead to wasted ingredients, while too little can result in unhappy customers. Supply chain management can help you order only required quantities at all times so that you don't end up throwing away unused ingredients or leaving customers dissatisfied.
Top 3 Restaurant Supply Chain Solutions
1. Zip Ordering
The Zip Ordering order management app is a robust supply chain solution designed especially for restaurants. The software supports order placement in seconds, easy management of invoices and optimizes the entire ordering and supply process. While Zip promises to simplify the ordering process for a restaurant, its innovative features include easy and direct communication with vendors and suppliers, and consolidation of orders. This reduces the scope of error and saves time. Restaurant managers can customize order guides, import product catalogs from suppliers, and place orders in seconds.
With Zip Ordering, you can also explore new vendors in the area, find out who is selling products at the best rates, and access all your purchase details from a centralized location. Restaurant managers can better understand their ordering processes, and compute costs and total expenses from the reports and insights generated by Zip.
2. Oracle
The Oracle restaurant supply chain management system offers demand planning and management, supply chain planning, and inventory management solutions specially designed for restaurants and foodservice businesses. With these tools, business owners manage single-unit restaurants as well as franchise establishments and their corporate offices with equal ease. The demand management tool helps restaurant operators create new menus, introduce new items and source products in no time. The inventory optimization tool helps restaurants make the most of their inventory stocks and improve profits. The software also has a powerful analytics tool with which restaurants can analyze and plan their inventory and supplies across multiple franchise locations. All this has a positive impact on business performance and customer service.
3. Posist
With the Posist restaurant supply chain management system, restaurant operators can view and manage inventory requirements of multiple chain outlets from a centralized location. The Posist system helps speed up purchase orders, order management, and deliveries while easing the supply chain system. The Posist SCM software also helps businesses collaborate with multiple vendors at the same time, source their product catalogs, and choose options that best suit the business. Its simplified processes not only help improve cost efficiency, but also customer service, and demand management. Posist's list of features also includes staff management, centralized menu management, demand forecasting, vendor management, and multi-location management.
You don't think your old supply chain system needs any improvement.
You could be wrong. Here are 5 ways a good supply chain solution can do wonders for your business.
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Frequently Asked Questions
Who are Yum Brands suppliers?
Yum Brands suppliers include Tyson Foods, Smithfield Foods, and Pilgrim's Pride.
What company supplies Pizza Hut?
Pizza Hut is a subsidiary of Yum! Brands, which also owns KFC, Taco Bell, and WingStreet.
What is the supply chain for a restaurant?
The supply chain for a restaurant begins with the suppliers of the food ingredients and other necessary supplies, and ends with the customers who patronize the restaurant. In between, there are a number of steps involved in getting the food from the supplier to the customer, including storage, preparation, and cooking.