A restaurant supply chain covers the process of establishing relationships with suppliers and distributors, right through to the delivery of goods and fulfilment of customer orders.
Keeping a close eye on your supply chain is crucial for ensuring your business operates efficiently – with lower costs and increased revenue.
Today, we shine a light on the benefits of supply chain management – and how to deal with any problems that come your way…
What are the benefits of supply chain management?
Supply chain management is essential to the success of any restaurant franchise.
Here’s some of the benefits for your ghost kitchen brand…
1. Improved collaboration
Effective supply chain management means working in close collaboration with your key suppliers. By prioritising long-term, effective relationships, suppliers get to know your business, cost constraints and requirements.
2. Quality control
When your suppliers understand your virtual food brand’s needs and goals – everyone works to the same standards. This means quality control issues (for instance a faulty batch of packaging) are detected before the goods reach your kitchen.
3. Increased profits
We all know the costs of logistics have risen massively over the past few years. Effective supply chain management reduces the number of distribution channels you’re working with – reducing costs and increasing profits. It also cuts storage and security costs, by identifying optimal inventory levels.
4. Reduced risks
Quality control, reliable supply chains, improved communication… it all results in less business risks. A resilient supply chain also allows ghost kitchen brands to adapt to new business opportunities as they emerge…
5. Better data
Supply chain management should be supported by software tools and technology – helping to manage stock levels, track distribution, payments and monitor usage. This “real-time” data is essential for understanding your business overheads and performance.
How to successfully manage your supply chain
With a firm understanding of the benefits of effective supply chain management, let’s take a look at three of the most common problems and how to deal with them.
Problem 1: Ordering Delays
Solution: It’s critical that any POS (point of sale) trends translate into timely actions. Invest in software that helps you stay one step ahead of the game; sensing and responding to demand patterns with menu-item forecasts.
To avoid miscommunication, streamline your systems as far as possible. Only partner with trusted names (known for their good quality and experience) to further reduce inefficiencies.
Problem 2: Out of Stocks
Solution: Responding to unforeseen issues is key. If your supplier has limited inventory of a particular product, what are your alternatives? Think about similar products as well as back-up suppliers for worst-case scenarios.
Improved communication should mean these issues are raised before they even arise however, so ensure you’re always talking and building relationships with your regular suppliers.
Problem 3: Fluctuating Prices
Solution: The price of raw ingredients varies significantly. Seasonality is an important factor, so only use expensive ingredients (say fresh strawberries) for special “time-limited” dishes.
For your most common year-round items, implement a “price buffer” to protect your business from market fluctuations.
At Peckwater Brands, we empower business owners to run successful delivery franchises from their existing kitchens. Book a call and find out how we can supercharge your operations today.
Topics from this blog: Suppliers Operations
