Five reasons why a food industry should digitise restaurant supply chain?
digitise restaurant supply chain

In the last two years, we have seen an exponential increase in the adoption of digital platforms by various sectors of the economy and the F&B industry has been no exception. The restaurant industry has been very sluggish in adopting technology, but changing customer trends and consumption patterns have forced them to give this a second thought. 

Most of the tech adoption in the restaurants has been on the front end of the restaurant like the POS, accounting, online ordering, training and payrolls. As per estimates, the demand for restaurant management software will touch around USD 7 billion by 2025. Considering restaurants spend 70% of their revenue on food ingredients, and 12% of the food is wasted even before its sold, the supply chain and procurement side needs to be digitised first.  

If a restaurant has to be profitable and flourish rather than survive, it will have to adopt a supply chain that goes beyond just storage and logistics. A digitized supply chain management service can help the restaurant in many ways; some of them are as mentioned below:- 

Better accountability and traceability:-

A digitised restaurant supply chain improves the traceability of the food ingredients and the goods purchased. The outlets have up-to-date inventory stock, and when they need to restock, this prevents the problem of overstocking and understocking.  A digitised supply chain enables the restaurant to track the shipment, thereby creating accountability for any delays and preventing them. 


Digitising restaurant supply chain service speeds up the logistics of restaurants by reducing manual errors. The automation process also improves data accuracy and facilitates decision making at multiple stages of a logistics life cycle. Due to automation, alerts are generated when some goods are understocked and purchase orders are delayed, reducing the need to divert human resources for these tasks. In simple words, automation helps reduce human intervention in supply chain management. 


A digitised restaurant supply chain integrates logistics, warehousing, and many other internal and external supply chain elements. It avoids the silo effect within an organisation where one verticle is unaware of the happening in the other department. Digitising your supply chain helps a shared view of all the information and the happening in a single portal rather than in departmental spreadsheets. Better visibility, integration, and collaboration across restaurants’ internal and external segments make it easy to access information and accelerate decision making. 

Data Analytics:-

Many a time, restaurants take crucial decisions based on the day to day functioning of the gut feeling they have or very crude approximate calculation which may or may not be accurate. A digitised restaurant supply chain generates crucial data, and the analytics can be used to understand the bottlenecks in the supply chains and the cost reduction opportunities. By studying, the analytics the restaurant can understand the current and the future risk and take corrective measures accordingly. 

Technology can augment the supply chain efficiency in numerous ways and expedite the process by saving time and cost and reducing wastage. New and old restaurants should adopt investing in a digitised supply chain as it is no longer a luxury but a necessity.

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