5 money-saving supply chain trends for 2017

Original Post Source

Jan. 16, 2017

Having a solid supply chain is imperative for restaurants looking to reduce food-safety issues and to keep costs low, said Consolidated Concepts President Bruce Reinstein. He believes the restaurants that pay attention to the following five trends will stay nimble in handling the operational challenges in foodservice over the next year.   

“The best way to make sure your supply chain is covered is to plan ahead while also remaining more nimble than ever,” Reinstein said in a news release.

  1. Continued labor cost challenges, though food costs stabilize: Pre-planning is needed to budget accurately for food and paper products, while operators who have built in the flexibility to quickly change ingredients have the advantage.
  2. The need to outsource all layers of supply chain purchasing will only grow: “There is simply too much to do and not enough time,” Reinstein said. Supply chain personnel should seek third-party partners to step in as supply chain advisors.
  3. Continued consumer demand for operational transparency and clean/quality ingredients: Operators who can and do fully disclose food sources, production, processing and preparation practices will fare best.
  4. Growing importance on growth and scalability: Operators pushed to open more locations must ensure they are doing so in a manner that is sustainable for the brand with care to keep that focus over long term. 
  5. New possibilities for paying more to actually save more: Operators who stay abreast and open to products and services that may cost more on the front end, but end up saving them more on the back end will be at an advantage. For instance, in some cases purchasing a costlier pre-shredded meat can save operationally by cutting labor costs. 

“With the coming changes in labor costs, the old adage of ‘work smarter, not harder’ has never been more applicable,” Reinstein said. “It’s time for operators to start spending smarter as well.”

 


Topics: Business Strategy and Profitability, Food Cost Management, Operations Management, Supplier


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