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Importance of Supply Chain Management for Restaurants

  • Published on : 01/02/2017

Lately from the past couple of years the concept of Supply Chain Management (SCM) has been creating quite some buzz in the restaurant business. Given to its advantages, many restaurateurs are now taking keen interest in knowing its ins and outs. Supply Chain Management or SCM as we call it is nothing but a solid management of all your restaurant business functions ranging from manufacturing to procurement, logistics and so forth. This management of logistics can be done offline or with the help of an automated SCM software system. So let us touchdown on some core points to understand how SCM is important for the health of your business!

1. Demand for quality food – Any restaurant business comes across several paradoxes and the most crucial of them is the demand for quality food at a reasonable rate. However at the backend, only a restaurateur knows the challenge of serving his customer with the most delicious dish at the cost of fresh ingredients, that too with a reasonable pricing. This is where SCM becomes important for the restaurateur to order and manage his inventory coming from one or multiple suppliers, with timely delivery and at the most affordable rate possible.

2. Effective communication through POS – The key to effectively manage your restaurant business is through effective communication between the employer, his employees and the staff at large. Technology being a boon, your business can be easily automated and interlinked through a user friendly Point of Sale software for Restaurants. This system not only generates real time reports but also helps in taking care of all your front end activities. Thus with proper training for the staff and automated settings, you will receive constant updates of your business sales and invoices, even in your absence!

3. SCM with value added features – Managing the inventory and logistics of a multiple restaurant chain, scattered at different locations, can get overwhelming! When you start to integrate the SCM system of your restaurant with a POS software, you eventually create room for a list of value added features like centralized ordering of inventory for your multiple restaurant outlets, security control, coordinated reports and updates, accounting & invoices, feedbacks etc. These features not only help to optimize your business but also give you an edge over your competitors.

4. Analysis and evaluation – Last but not the least, a thorough research makes you an informed restaurateur. With the help of the data you secure from the periodic reports and analysis of your SCM system, you can draw conclusions that can help for the growth of your business. For e.g. a detailed analysis of the dishes most liked by the customers will help you evaluate which ingredients and commodities will require an increase in your inventory list. This helps your restaurant chef to master the dishes and you get to re-design your menu in a pattern most liked by your customers. And as news travels fast, your restaurant becomes one of the most preferred one with satisfied customers leaving footprints of positive reviews.

This is how SCM is inter-linked for maintaining a good health of your restaurant.


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