4 Tips and Best Practices for Restaurant Supply Chain Management
Restaurants must depend on the efficiency of their supply chains in order to meet customer demand. Find out how to optimize the restaurant supply chain process.
The success of any restaurant is dependent on the supply chain it establishes to stock their kitchen with ingredients. With the rapid advancement of technology, the methods of inventory replenishment are quickly transforming.
Restaurants today are slowly turning to third party retailers online to meet their supply demands. Approximately 12% of restaurants are currently utilizing online third-party sellers to stock up their restaurants, while 40% of purchase supplies from online services on a monthly basis.
These statistics are only getting higher by the year and it's prudent for restaurants to think of their supply chains not only by what's been done in the past but also by focusing on more efficient and cost-saving ways for the future.
Image from pixabay.com
Importance of Proper Supply Chain Management
A restaurant supply chain is a process whereby restaurants establish a relationship with suppliers and distributors to produce menu items and meet customer orders. This can involve purchasing anything from food, beverages, napkins, plastic cups, and more.
The food and beverage industry is dependent on the relationships that are established with vendors because one disruption in the chain management system could result in restaurants not being able to adequately serve their customers.
This is why it is incredibly important for restaurants to closely manage their supply chain networks. Keeping close tabs on the supply chain to ensure that it is operating efficiently can mean lower costs and more revenue. Since distributors in the supply chain are a restaurant's primary source of replenishment, disruptions to any of the ingredient suppliers can cause shortages in the kitchen.
If restaurant supply chain disruptions do occur, it can force establishments to search for emergency suppliers and drive up last-minute inventory purchasing costs.
Image from pixabay.com
How to Improve Your Supply Chain
There are many different ways to improve your supply chain. These are just six measures restaurants can implement to get the most out of their suppliers and the money they spend on inventory purchasing.
1. Acting on Changes in Demand in Real-Time
The benefit of relying on a digital supply chain tracking system is that it should offer insights that ultimately lead to actions. The digital management of a restaurant's network of suppliers should be able to detect changes in demand, correct any supply forecasts in response, and coordinate with suppliers on restocking the products appropriately. This must all be done in real-time and in response to changes in customer demand.
2. Consolidating Logistics and Warehouses
Simultaneously optimizing costs relating to transportation and inventory is another way to increase efficiency. This entails better optimizing the supply chain by turning to a demand-driven distribution of products rather than one that is fixed on a set schedule.
3. Tracking Where Your Supply Comes From
As a restaurant, serving food that is safe to consume is of the utmost importance. Thus, if there is an outbreak involved with the raw foods you receive, it's important for restaurants to be able to trace where the outbreak occurred. Food and beverage businesses utilizing automated inventory ordering systems are able to track this information and all purchase orders digitally.
4. Managing Your Promotions
Restaurants that offer promotions to their customers need to make sure that they won't run out of their current supply if the promotion is a success. Thus, management needs to be certain that product shortages won't occur by checking their quality management system to see their suppliers' distribution inventory.
Before any promotion is offered, restaurants need to know if the demand will be there and that accurate forecasting projections are in place. Ensuring that customer demands and forecasting models are accurate will help to prevent wastage and will save the restaurant valuable capital spent on excess stock.
Image from pixabay.com
Benefits of Inventory Ordering Software
A crucial component of the restaurant supply chain process is inventory replenishment. This important step can be easily automated using inventory ordering software to streamline supply chain and restocking procedures. Here are some benefits of using inventory ordering software.
- Reduction in Costs - Stock ordering software is adept at monitoring inventory levels and ensuring that orders are placed well-ahead of stockouts while preventing overstocking. These systems can also be programmed to place orders automatically to save on labor-related costs.
- Sufficient Inventory - For the restaurant industry, having inadequate amounts of inventory can lead to significant losses in sales. Ordering software can perpetually track ingredient levels and alert management when certain items reach their reorder points.
- Less Wastage - Another benefit of utilizing replenishment software to maintain optimal levels of all inventory is the lack of food waste. Excessive restaurant food waste is not only harmful to the environment, but also to a business's budget as well. Wastage can indicate overspending on inventory and inaccurate demand forecasting.
You May Also Enjoy
Speed of service is the amount of time it takes a restaurant to serve its diners. By following the best practices to improve speed, more sales can ...
Businesses need to streamline operations and eliminate inefficiencies to achieve operational effectiveness. Here are the best practices to optimize...
Digital signage kiosks provide interactive experiences for the customer, and offer a unique way for companies to analyze information, build brand a...
Restaurant forecasting software collects data from historical and real-time transactions to detect future sales patterns and predict potential outc...
Developing a well-defined restaurant organization strategy will ensure that perishable goods, like meat and produce, are properly stocked and food ...
Restaurant loyalty programs reward members for visiting and making purchases, improving customer engagement, foot traffic, and sales.
Electronic menu boards provide ample opportunities for restaurants to improve sales and draw in consumers through impressionable visuals, board tem...
Perishable goods, such as produce, dairy products, and raw meats, require proper transportation methods that will guarantee their freshness.
Food supply chain visibility improves inventory management and optimizes relationships with customers. Here is an overview of visibility benefits f...
An optimized food management system allows operators to streamline inventory management, logistics, and prevent food safety problems. Here are the ...
Maintaining operational efficiency in restaurants entails managing several operations, such as employee, customer, inventory, and workflow control.
Utilizing technology solutions and data analysis to improve supply chain management will prevent illness, streamline supply chain processes, and in...
Understanding and controlling the 4 major sources of restaurant costs will help businesses protect their bottom line.
Implementing a plan to manage food waste will help the restaurant industry boost its profitability, save money, and streamline operations. Here are...
By learning the causes and prevention methods of food spoilage, restaurants can minimize their food waste, improving efficiency and profitability.
Self-ordering kiosks are becoming increasingly popular among modern restaurants. With this technology, restaurateurs can ensure quick service and a...
Digital menus utilize videos, graphics, and customized messaging to inform customers about menu items, display company information, and offer promo...
Restaurant operations include all front house and back house day to day activities.
Restaurants that understand the cost of goods sold can better manage, regulate, and source their inventory to increase turnover and reduce food was...
By choosing the appropriate restaurant food storage containers, establishments can streamline preparation and inventory counts while reducing food ...
From cafes to sports bars, small businesses can improve their capacity by using restaurant design ideas that maximize available space through layou...
A restaurant newsletter gives businesses the chance to offer their audience customized content, while driving customer engagement, new leads, and o...
Restaurants must depend on the efficiency of their supply chains in order to meet customer demand. Find out how to optimize the restaurant supply c...
A cafe POS system provides the security and payment processing features necessary to orchestrate daily operations for small businesses and large ca...
Avoiding cross contamination is crucial to preventing food poisoning and foodborne illness outbreaks.
Food safety is a non-negotiable component of any food business. All food professionals should have the knowledge to properly implement food safety ...
Restaurant accounting is an essential process that every establishment needs to determine its financial health and profitability.
Understanding restaurant profit margins is extremely vital to the success of any restaurant. Without a comprehensive knowledge of how to calculate ...
Restaurant analytics can increase revenue by providing management with data-based reports on guest experience, staff performance, inventory, sales,...
Business analytics dashboards are an integral component for delivering important business metrics. Here are the best practices for implementing a B...
Discover the key features of restaurant inventory management software, how to monitor food costs, as well as the importance of automation in invent...
Great restaurant management can make the difference between whether a restaurant is successful or not.
Calculating the food cost and using food cost control techniques are crucial for a restaurant’s bottom line.
Biometric scanners and fingerprint identification systems are now being utilized in workplaces all around the United States to track time and atten...
Curbside pickup allows customers to purchase and receive products without leaving their cars, streamlining the transaction process and limiting in-...
An online ordering system can promote a restaurant’s scalability by driving its sales, profits, and traffic through digital exposure.
From new technological innovations in-store to increased reliance on social media campaigns and online ordering services, learn the 10 restaurant t...
To create an ideal relationship with restaurant vendors, food service businesses must understand the key actions to take in order to establish a mu...
The science of creating an optimal menu will involve calculating prices geared towards driving profits while creating strategically eye-catching de...
Absenteeism, also known as the bottom line killer, can result in lost productivity for any business. The following addresses the causes of employee...
Food waste is a problem that affects all restaurants. However, there are proven strategies available to address this issue, ranging from redesignin...
Learn how to implement the best practices to protect your business and employees, as we understand the consequences of global pandemics.
The restaurant startup business is very competitive and many, unfortunately, close soon after they open. In this article, we’ll discuss three Hubwo...
Some support systems make a measurable difference in owners’ profitability, while others are no more than words in a sales pitch. So how can a fran...
Managing a restaurant or any startup can be a difficult task. Knowing each complicated element that goes into the day-to-day of a manager is a must...
Restaurant managers may feel that they don’t have enough time to pursue advanced business intelligence (BI) analytics. In this article, we introduc...
Are you entering the restaurant business but don’t know if you want to buy an existing restaurant or build your own? While purchasing an existing r...
Learn how to use social media properly, and you can look forward to increased customer loyalty, a better reputation, and a valuable opportunity to ...
Today, social media is often the first place people go to find a restaurant’s menu, hours, and reviews before heading out. Let’s look at some effec...
If you’ve been in the restaurant business for some time, it’s highly likely you’ve seen trends come and go, but, everyone knows quality is always h...
Honey is universally known as a natural sweetener and is composed of natural sugars. Pure honey, in its raw form, is also used as a remedy for vari...
Many restaurants do not fully understand the effect of customer loyalty on their business success. They endlessly spend money on marketing services...
A bagel is made of wheat-based pastry or bread, which is first boiled or steamed before being baked. Once kneaded and shaped, the bagel is proofed ...
Whether you are planning to start a new restaurant business or you already have an established business, there are certain things you must take int...
Not utilizing these tried and true best practices for inventory control has caused many restaurants to fail before they ever get a chance to thrive...
Storytelling is a powerful marketing strategy that builds trust and helps you connect with your clients. You need to leverage your brand story to e...
The restaurant management software you use is essential to your business’ success. Many owners and managers get caught up in the human aspect of ma...
As you grow older, you may begin to notice that you suffer more from common ailments, like the cold and flu, during the colder seasons. To combat t...
While Thanksgiving is often associated with food, loved ones, and overly full stomachs, if you’re hosting Thanksgiving, it can also be correlated w...
Your food runner is one of your most important restaurant employees. Choose the right food runner, server, waiter, and waitress to be the collectiv...
Sunflower oil is a healthy option for all your favorite recipes as it’s valued for its light taste and frying performance. High in Vitamin E, Sunfl...
You need to be on Google. It’s the largest of all search engines, and it is proven to help restaurants boost their business. Let’s take a look at s...
Whether you are running late or not feeling hungry, no reason justifies skipping breakfast. Your body needs energy, which is obtained through food,...
Every bar is different, but one uniting element is the need for inventory counts. With an inventory management app, such as Zip Inventory by Hubwor...
Do you enjoy seafood, like crab and lobster, but struggle with being able to eat it because of the shell? Combat this problem by learning how to br...
A quality restaurant POS system can be utilized to help users better understand their business’ performance and improve upon vulnerabilities, by pr...
As I slowly ascend the vibrant and healthy moss-covered hillside, I methodically scan my immediate vicinity with a patiently focused gaze. It doesn...
Shortcuts aren’t always a bad thing. When it comes to running a restaurant, you need to find ways to get tasks done quickly without sacrificing qua...
There are so many food holidays in a year and with a little creativity here and there, any restaurant owner or manager can attract more customers a...
Surprisingly, one of the most common problems of restaurants is its menu. Whether it’s the design or the number of pages the menu has, it’s certain...
Zip Clock, from Hubworks, is being honored as this year’s Editor’s Choice Award for it’s affordability and advanced functionality.. Zip Clock is a ...
CREAM founder and co-president, Gus Shamieh, tells us the whole story.
Scheduling solutions are garnering a lot of interest lately from operators. Due to a perfect storm of rising wages, health care costs, and employer...
With eRestaurant 2018, Altametrics continues to break new ground.
When subzero temperatures start creeping in, ice cream shops tend to see less and less customers walking through the door. So, here’s the big quest...
Having the knowledge of how much your food costs you to sell is critical to running a successful operation. Your food cost percentage should be ut...
Millennials are claiming their stake as the most engaged group of diners yet. They go out to dinner more often than their predecessors ever did, an...
A lot has been written about how to manage Millennials versus Baby Boomers. And that’s valuable information – for many employers, the differences b...
Restaurateurs need to ensure that food safety is top of their agenda when they open their business. Their commercial kitchen, and all areas of the ...
The restaurant industry is rising and expanding again with the support of cutting edge technologies. This signifcant increase of technology has bol...
Before you place incoming meat, poultry, or seafood in its rightful storage, a proper inspection following a detailed guide should take place. This...
Restaurant security should be one of the biggest priorities for owners of a restaurant operation, especially when you consider how much cash and cr...
The menu is a main driving force in getting customers in the door, and they want to pay for the quality they are receiving. The prices on the menu ...
Managing staff is both the most complex and rewarding part of becoming a restaurant manager for the first time. You have a vision for how you want ...
Off-premise orders are driving growth for restaurants, so how can you get your share? Adding catering to your business is one way to go. Sound inti...
Food has long held its rank in the business setting. Increasingly, however, companies are moving beyond taking a decision maker out for a nice meal...
One of the best ways for restaurateurs to improve their business is to listen to their customers and take their opinions on board, whether they are...
Restaurant owners and managers are really starting to feel the effects of a rising minimum wage and increased labor costs. Today, more and more res...
Point of sale (POS) systems have given the restaurant industry a huge boost over the last few years, and as the technology continues to develop, so...
In order for your restaurant to run smoothly during every service, the right equipment has to be in store and on hand so that your servers can deli...
Your menu is your moneymaker, which means it plays a huge role in attracting guests to eat at your restaurant and consider it their usual haunts. Y...
CKE Restaurants CEO Andy Puzder loves the company’s flirtatious TV spots, he hates big government, and he gets why his 23-year-old son wonders wher...
Taco Bell has managed to successfully captivate the attention of Millennials everywhere and they continue to gain their loyalty. How has the once s...
One of the biggest emerging trends in restaurants is the return of the communal table. Communal tables are long, shared tables where people are typ...
Who can resist a sweet, fluffy, doughnut? With flavors like huckleberry and maple bacon being served up fresh every hour, Sidecar Doughnuts in Sout...
The Denver-based fast-casual chain has millions of followers — but that doesn't stop them from going all-in with customers on social channels.
I was lucky enough to sit down for a Q&A with one of Popbar’s founders; Reuben BenJehuda to indulge myself in some of the techniques the chain ...
How Corner Bakery Cafe sifted OT out of its restaurant payrolls with a pull-no-punches, intelligent timeclock solution
RMagazine had the pleasure to sit down and pick the mind of Elie Ayrouth, the founder of Foodbeast, the “TMZ of food news.” He has his head down w...
The expeditor is your sentry at the kitchen window, the human linchpin who operates where the expectations of the seated customer — in terms of foo...
