What is the most crucial factor that leads to the success of an F&B industry? You are probably not wrong if your answer is an effective marketing campaign or a tantalizing menu. But something far more important than that is a user-friendly restaurant Inventory Management system.
One of the biggest challenges a food establishment faces today is the ever-increasing cost of commodities and the resultant rise in expenditure. The rise in expenditure also eats into the profitability of the business. There isn’t much a restaurant can do to bring down its rent, human resource expenditure, and other fixed costs like electricity, etc. However, a digitized Inventory management system can help businesses cut costs and increase operations transparency.
Inventory management alone can considerably bring down the operations cost of the HoReCa business. Dealing with your inventory manually has many pitfalls, especially when the restaurant starts expanding its operations. Inventory management helps businesses keep track of inventory, thus preventing overstocking and resultant wastage or understocking, leading to angry customers and loss of business.
An Inventory management system gives a 360-degree view of the inventory from its procurement until it is delivered to the guest. Pilferage and wastage, if any, can be detected and fixed before it becomes a significant problem.
What is a Restaurant Inventory Management System?
An Inventory management system (IMS) answers the two main questions the food industry is faced with: when to buy and how much to buy at any given point in time. An IMS allows a restaurant to track the inventory location and the quantity. Once a detailed mapping of every food ingredient is done, it becomes possible for a restaurant to forecast inventory planning. A food business can automate the reordering process by creating an efficient stock management system.
A modern Inventory management system allows the restaurant to keep track of stock across the inventory cycle stage. The inventory cycle stages can be divided into two parts: physical stock available at hand and the one ordered from the supplier. By ensuring a transparent inventory cycle stage, the restaurant can ensure that it never runs out of stock. Thus Inventory management System helps you make balanced decisions about stocking and increase business efficiency.
Benefits of using an Restaurant Inventory management System for a restaurant:-
An efficient Inventory management system improves the efficiency of an F&B business manifold in the below ways
Increase cost efficiency:-
One of the significant challenges facing the F&B industry is controlling the inventory cost. Most businesses acknowledge the problem but don’t know how to control it. Inventory management systems help with this problem by generating analytics and reports from the data fed into the system. By going through the reports, one can know the reason for wastage and pilferage and how to stop it. Thus an entrepreneur can cut down on costs and increase the bottom line.
Better expenditure analysis:-
Wouldn’t it be cool if a food entrepreneur could get an update when a menu item is not generating enough profit? With an Inventory Management System, a restaurant can do the same. Raising inflation increases the cost of the food ingredient and thereby increases the production cost of the menu ingredients. Data generated by the IMS allows a restaurant to make rational decisions about when to increase the menu item cost. So an IMS business can decide to remove the low margin products or increase menu pricing based on reasoning rather than making arbitrary decisions.
Data-driven Inventory Management:-
With real-time availability of the stock in hand, a restaurant doesn’t need to overstock and then face the problem of wasted ingredients. An IMS helps one know when stock is depleting, and it’s time to reorder. An IMS enables better decision-making, planning, accurate inventory forecasting, and less expenditure on holding unessential stocks or stocking in wrong locations.
Automation of the Inventory management:-
One of the most significant advantages of an Inventory Management system is automating repetitive processes. In this way, human intervention can be minimized, and so will the error. Integration of restaurant point of sale and Inventory management systems can automate the procurement process. As the order is punched, ingredients required to prepare the same are deducted from the available stock. Once the stock starts depleting, the IMS can intimate the restaurant manager about the low stock and trigger the order command for the product.
How can the SupplyNote Restaurant inventory management system help restaurants manage their stocks:-
An Inventory management system (IMS) answers the two main questions the food industry is faced with: when to buy and how much to buy at any given point in time. An IMS allows a restaurant to track the inventory location and the quantity.
Once a detailed mapping of every food ingredient is done, it becomes possible for a restaurant to forecast inventory planning. A food business can automate the reordering process by creating an efficient stock management system.
A modern Inventory management system allows the restaurant to keep track of stock across the inventory cycle stage. The inventory cycle stages can be divided into two parts physical stock available at hand and the one ordered from the supplier. By ensuring a transparent inventory cycle stage, the restaurant can ensure that it never runs out of stock. Thus Inventory management System helps you make balanced decisions about stocking and increase business efficiency.
SupplyNote provides you with a single dashboard to discover all your suppliers. In this dashboard, you can get the real-time availability of the stock with the vendor and then make purchases accordingly. These features simplify the procurement process; now, there is no more need to make many phone calls and other hassles.
One of the prominent features of SupplyNote IMS is a smart cart that enables automation of your procurement process. Our Algorithms reads through the sales, wastages, and recipes, enabling your food business to create your unique procurement IP.
Supply Chain Analytics:-
SupplyNote IMS, based on the data generated by the order from the point of sales, creates reports. These reports give you insights into your business and help you take corrective steps to purge wastage and losses.
Does integrating third parties give you sleepless nights. With SupplyNote IMS, you can easily integrate several ERP and POS systems.
SupplyNote IMS helps you maintain a systematic ledger for every vendor. Get details about your vendor by clicking a button. Maintain timely accounts and improve your relationship with the vendor.
If you are a food entrepreneur, it’s high time you start using a Restaurant Inventory management system. Instead of wasting your time on inventory-related issues, give attention to promoting your food business. Click on the link to book a demo now.