Optimizing supply chain is crucial for restaurants

Contributed by: National Restaurant Association of India (NRAI)

The Food Service (FS) Sector’s supply chain comprises a complex web connecting millions of contributors, including farmers, trade intermediaries, kirana stores, unorganised food vendors, hawkers, small-scale food-processing industries and restaurants.

Since consumers demand fresh, locally-produced ingredients, the role of supply chains is critical. Given customer preferences, restaurants are switching to sustainable, automated methods to ensure right procurement, therefore enabling sound economic and business sense.

Some examples and highlights:

  • Domino’s Pizza – one of the largest, most-profitable restaurant chains in India – deploys a complex but manageable system to maintain its supply chain.
  • It works with a network of 250 suppliers in India, operating out of 10 factories.
  • The food supplies the QSR (Quick Service Restaurant) chain buys mainly involve fresh produce.
  • Jubilant FoodWorks (which holds exclusive franchise rights to supply Domino’s outlets), owns temperature-controlled centres and vehicles with fully-automated logistics systems.
  • In meeting consumers’ increasing demands and simultaneously maintaining tight, efficiency-oriented production schedules, supply chains are turning increasingly complex.
  • To manage the situation, supply chains and logistics players are using IoT (Internet of Things).
  • Managing inventory, warehouse stocks, optimising fleet routes and reducing wasted mileage have become more efficient with IoT.
  • Cloud computing is also being used extensively in supply chain management.
  • RK Foodland has deployed Cloud technology in optimising routes, tracking consignments and maximising driver and vehicle safety.
  • GPS-equipped supply vehicles are providing customers real-time updates on consignments.
  • Another feature, data-logging facility, ensures the prescribed temperature for food products being shipped is not compromised, safeguarding both safety and freshness of the supplies.
  • Centralise procurement is another feature whereby purchasing decisions are made either at the head office or regional office of the organisation.
  • In this case, Dunkin’ Donuts and Pan India Foods have partnered with fast-food operator Jubilant FoodWorks.
  • Consequently, Jubilant’s highly-efficient supply chain system maximises profitability while keeping product offerings uniform, thereby promoting customer loyalty across the country.
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