Supply chain management is a powerful tool for restaurants, as long as it functions effectively. A solid, reliable supply chain means that a restaurant can deliver food that is of a consistent quality. Moreover, that food is fresher and safer. As an added incentive, good supply chain management can even improve operation cost savings. Clearly, reviewing current supply chain practices and perhaps making a few adjustments could be valuable for restaurants of any size.
With improved supply chain management, the restaurant enjoys a more collaborative and transparent relationship with its suppliers. This makes it easier for them to get the raw product they need, when they need it, so that they can continue to offer great meals to customers.
One of the best ways to ensure good supply chain management is by developing long term relationships with suppliers. A carefully crafted, long term contract is the best way to start off on the right foot. With both parties understanding their rights and obligations, the relationship functions better. Plus, it's much easier to rely on a known and trusted supplier than it is to be always scrambling for a supplier at the last minute. Restaurant operators are also more likely to receive product of a consistent quality when they stick with their supplier. This makes for more efficient operations and can save any number of headaches.
Good supply chain management can also help put a cap on costs. Restaurant operators who have contracts in place with suppliers are often able to negotiate advantageous pricing. This can also pay big dividends when market prices drastically fluctuate. A locked in price can keep products inexpensive, and prevent the necessity of having to charge more for menu items.
Practicing good supply chain management principles can make an enormous difference in the profitability of any restaurant. By reviewing current practices and adopting improved supply chain management, restaurant owners and operators can develop collaborative relationships with suppliers that benefit all parties.