Reducing the Risk of Supply Chain Disruption
This blog is presented in partnership with AHA Sponsor: QUASEP
Labour shortages affect all levels of the supply chain, from producers to manufacturers and distributors. These shortages have led to delays, stockouts and significant increases in the cost of goods. QUASEP is here to help you when it comes to applying different supply chain management strategies and offering your customers the best possible quality.
It all starts with your supplier relationship. Developing a close relationship with your supplier can give you access to key information when it comes to the success of your business.
By understanding each other’s situation, you will improve your chances of moving forward together and finding solutions that fit your respective needs. For example, offer your suppliers an alternate delivery day to help them optimize their routes, or give them keys to your building so they can make deliveries outside your business hours. This way, you have everything you need at the start of the day. This type of relationship could also help you become a better manager by being aware of any special offers or market trends.
You may be given more competitive prices, more flexible payment options or even priority delivery, in fact joining a group purchasing organization (such as QUASEP) can help you to secure the best deals. Networking in this way can also introduce you to new suppliers if ever you need them, or to substitute products when you are out of stock.
It can also be to your advantage to work with local partners as it can help to limit the number of intermediaries and potential obstacles. Being close to your suppliers also means faster response times, for example with last-minute orders.
Maximizing Your Orders
You will have more flexibility if you purchase a wide range of items that generate revenue for your business, especially dry goods that have a longer shelf life. Ideally, you will buy these goods at the lowest possible price. But you will still need to have the storage space, working capital and certainty of use. Also, the items most likely to be out of stock usually have limited purchase quantities per company.
Place your order well in advance to ensure timely delivery or to allow you and your supplier to find a substitute item if necessary. By limiting the number of items you require to run your business, you are limiting the number of problems you may encounter and making the most of each product. Purchasing an item in larger quantities may grant you access to discounts and allows you to use it for multiple dishes thereby reducing the risk of loss and increasing efficiency. For example, if you use only one type of meat this can minimize employee errors and avoid your staff from having to change equipment and clean work surfaces during prep.
Food is by no means the only product affected by supply chain issues. Equipment shortages, for example, sometimes require creative, short-term solutions. If the parts you need to repair your food processor are out of stock, you can try buying pre-cut ingredients or hiring temporary workers in the meantime.
Optimizing Your Resources
Inventory management software helps you be more reactive by making it easier to follow up, manage and organize stock levels, orders, sales and deliveries. This way, you will have a better chance of avoiding out of stock products, maintaining an optimal supply, tracking products after delivery, and preventing product obsolescence and waste. You will also save a great deal of time, versus doing it manually.
Menu engineering is a framework for evaluating a restaurant’s menu prices based on sales data and food costs. This process helps identify the most expensive items so that you can remove them from your menu or repurpose them for the best value.
Mistakes, waste and portion sizes should all be factored into your inventory to improve your operations management. For example, if tortilla packages always contain broken ones, consider using these pieces in another recipe, such as bread.
Expecting the Unexpected
The unexpected can happen at any time and as an operator planning for the unexpected is a good idea. Whether it is an unexpected weather event, supply chain disruptions, staffing shortages, or anything else that may disrupt your day-to-day operations, having an idea of how you might keep your operations running “business as usual” no matter what means that your customers know they can rely on you, and that you continue to run a profitable and successful business.
If you are not yet part of a buying group and would like to learn more about how QUASEP can help your operations please contact us:
Visit: www.QUASEP.ca
Contact: Shannon Marynowich
(403) 472-5463
marynowich-shannon@avendra.com