The upheaval caused by the pandemic has disrupted global supply chains more than any other period in recent history. He highlighted the critical importance of changing supply chain systems to be more responsive and nimble to the changing dynamics around us – something that has been long over the past two last years.
As diners return to their favorite restaurants, bars and other dining establishments, restaurateurs are feeling the pressure on the food supply chain. Brands are turning to restaurant technology to maintain a healthy connection with their suppliers, experiment faster, and predict the performance of new service concepts and models. To do this, restaurants need to be aware of these key elements of successful supply chain management.
Planning and forecasting
The goal of every food company is to synchronize supply and demand. In order to reduce costs, waste and optimize inventory, the process begins with planning and forecasting.
Operators need to think about what it takes to achieve their key revenue goals alongside controlling costs and eliminating waste, ensuring they consistently provide the end consumer with a high quality, predictable food product. and traceable. This includes the ability to analyze data on top performing menu items down to ingredient level, vendor performance, core cost and peak hours of demand by order channel. This is important because material changes in consumer behavior are largely associated with how they choose to experience, purchase, and receive their products in restaurants.
In an industry that deals with perishables and other goods with short shelf lives, even small price changes for inventory that has low turnover, high risk of spoilage, and high volume items can have a major impact on the performance and profitability of your business. . Connecting your financial inventory, transaction and restaurant management systems allows you to optimize production and better control cost variances proactively.
Supply Chain Flow Tracking
A critical element of effective supply chain management is the ability to track and trace goods as they move through the supply chain, from farm to fork. Being able to track and manage how and when different ingredients arrive at restaurants and then how they are served to diners is especially crucial.
As we’ve all seen with various food recalls, knowing exactly when produce arrived, where it came from, and where it resides in your kitchen is critical. Lack of product traceability can negatively impact a brand’s reputation and consumer trust, especially when a brand is unable to determine the origin and current residence of a problem. Consumers expect a high level of transparency about sourced ingredients, and for many brands this is a key differentiator. Managing thousands of vendors is impossible with on-site manual systems. The best organizations use collaborative cloud solutions where vendors can continually update and deliver information and brands can proactively manage issues as they arise.
In addition to having the ability to track and trace items and their condition as they arrive at a restaurant, operators must also be able to track the packaging and repackaging of items and their proper format through to the end consumer. .
Create a unique journey
Expanding restaurant service models and transaction channels requires focus and attention on day-to-day business metrics. Operators need to monitor revenue, cost, and inventory daily to stay agile and iterate on new concepts. And, in a time when every customer interaction is vital, getting accurate and comprehensive customer data across all channels will be critical to running an effective business and cultivating customer loyalty and retention. As restaurants chart the way forward, understanding customer perception, preferences, and sentiment toward changes in service and/or menu items will also be critical to long-term stability.
Companies need to think about and examine the entire value chain, from the point of sale, to the most granular DNA of customer interaction, including financial management and records management.
To do this, companies must seek a solution capable of offering a view of the entire value chain. Uninterrupted travel will yield data and insights that will help reduce costs and increase profits, ensure sound financial and records management, and drive more successful consumer interactions. Ultimately, those who have taken a consumer-centric journey are ahead and working on ways to innovate more than their peers. Your supply chain is a good place to look for a head start on price, product, and consumer confidence.