5 Ingredients To Streamline Restaurant Supply Chain Operations 

cloud-based pos system

All successful restaurant chains have an efficient and smooth supply chain management system. Here, technology plays a crucial role in order to solve complex operational and growth challenges in restaurant industries. Nowadays, technology such as cloud-based pos system has become the core business strategy to run a successful restaurant business. Hence, the Point-of-sale software has evolved over the years which provides services beyond sales.

The 5 Ingredients Of Supply Chain In The Restaurant Industry

  1. Demand Forecasting

    The first step for a successful supply chain cycle is a clear understanding of the demand or Forecasting Demand. It provides a comprehensive idea to the restaurateurs to customize their offers, discounts, and menu as per the trend or customer demand.

  2. Vendor management

    In the restaurant industry having the right vendor partners are essential for the success, quality of material and efficiency in supply. Therefore, it is important to use technology to manage all the vendors to maintain quality and efficiency.

  3. Purchase order management

    If you are a restaurant chain that has multiple outlets, you would understand that each outlet has unique potential for customer footfall. Of course, there’s no separate Menu for each outlet, but, you must analyze the raw material needs before ordering. This is important because the raw material requirement varies from one outlet to the other.

  4. Inventory management

    This section of the Restaurant business is the most chaotic one. It is always prone to mismanagement of raw materials required for food preparation and has a chance of running out at the last moment. Your smooth and efficient supply chain ensures minimal wastage/losses.

  5. Consumption or Recipe Management

    The difference between the required quantity to prepare an order and the actual quantity consumed is the variance. However, this often goes unnoticed in the restaurant industry causing increased food costs. The variance management is the comparison between the current physical stock verses the ideal stock which should be present.

 The Supply Chain Complexities & Solutions

In order to have an efficient supply chain operations in restaurants, it is important to have Traceability and Transparency. This comes from technology which provides a holistic view of the entire supply chain. Restaurant management software enables you to have a broader understanding of all the processes in your restaurant. It connects each and every single person whether your staff, customers, vendor-partners, etc on one single platform. This setup equips you with all the necessary information you need to manage and grow your restaurant business. All of this just a click away!

So, today we will talk about the 5 key ingredients you need to manage your supply chain processes with technology:

Demand Forecasting

Demand Forecasting is the first step towards the successful restaurant supply chain operations. It is common in a Restaurant Menu Card that not all the products sell equally well. There will always be products having higher sales than others. Hence, it is important to analyze the trend and forecast based on customer footfall before you order raw materials. Ordering raw materials without forecasting sales might leave you with increased wastage and losses.

Therefore, a cloud-based pos system serves you with an automated forecasting module that projects the future sales volume. This projection is based on the consumption patterns. Your POS system analyse the available physical stock and the item-wise sale to estimate the final inventory requirements. The demand sensing mechanism is helpful in forecasting both the menu and raw materials items. This enables restaurant owners to customize the offers on menu items for each outlet.

Vendor Management 

Managing Vendor-partners in the restaurant industry is a complex task for all big and small Restaurant Brands. Technology is important for all business types to be it fine-dine, cafes, or QSR chain to integrate vendor-partners and operate efficiently.

A poor vendor management system may lead to a shortage of the raw materials, deteriorated quality, delay in material supply, etc.

A cloud-based pos system provides a centralized panel for managing all vendor-partners which also eliminates the risk of manual errors. Technology helps you in tracing the invoice details, payments, order quantities as well as delivery details. This enables the restaurateurs to record the raw materials received from all the vendors across outlets.

In addition, one can also compare the prices of the similar products offered by different vendors in one panel. You may like to take an example of McDonald’s, which has several vendor partners across world to supply smoothly on-time to each outlet.

Purchase Order Management

Following the forecasting demand for the raw materials needed, it reduces the chances of excessive and shortage of raw materials. For a restaurant chain, the requirement of one item in an outlet may vary to the other. It is important to control excessive ordering as it only ends up in increased food costs.

With the help of a cloud-based restaurant system, restaurateurs can track and analyze the purchasing order needs concerning sales. Such technology enables the restaurateurs to order the material on the basis of the requirements of each outlet. In addition, one can also trace the order status, items purchased, receivables and much more.

Inventory management

Inventory is the critical part of the restaurant and hence needs your attention for regular inspection, control, and tracking.

However, it is not advisable to fully rely on staff as it is both time-consuming and ineffective. Without an automated solution, it becomes challenging to effectively manage the circulation of inventory. A restaurant cloud-based pos system, in this case, provides an automated solution with a real-time tracking facility. Also, it highlights the discrepancies in the usage and consumption of raw materials. This inventory management feature works on the FIFO method to reduce the wastage of the perishable items.

Consumption or Recipe Management

For all restaurant chains, it is important to have a set standard for food preparations. Why? Because it gives consistent food taste across all outlets to the customers. Also, having a set recipe reduces raw material wastage.

A restaurant management software is also useful to identify the gaps in the usage of inventory. For example, the cloud-based pos system automatically displays the ideal consumption of raw material when the staff updates the consumption level. This also highlights cases where there is excessive usage, wastage or pilferage in the consumption of the raw materials. Learn more about Recipe Management in this article.

All these above-mentioned ingredients are traceable and easy to access on a single screen, a pos management software. This is how the big players in the restaurant industry are solving their supply chain complexities.


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