Optimizing Restaurant Operations: Integrating Supply Chain Solutions with Online Ordering Systems

The digitization of the shopping experience and the popularity of online ordering systems have completely changed the restaurant industry in the past few years. But is this good for restaurant owners, and are there any downsides? Embracing online ordering has many benefits, but some restaurant owners worry about relying solely on this technology and perhaps losing the human connection with customers. This article aims to explore integrating online ordering as part of a supply chain solution and detail the advantages and disadvantages for restaurant owners.

Why Online Ordering Systems Should be Integrated into Supply Chain Solutions

Integrating supply chain solutions with online ordering systems is vital for restaurant owners and professionals looking to optimize their operations and boost their bottom line by enhancing efficiency and ensuring timely deliveries. Studies have shown that supply chain solution integration for online businesses has a positive impact. By integrating inventory management, production processes, and online ordering, coordination between aspects of customers' and suppliers' supply chains is simplified and improved.

For example, One Stop Stores, a UK retail convenience business with 1000 stores, used the Deliverect automated stock management solution to streamline its on-demand delivery operations and offer a consistent customer experience across all platforms. This helped to boost the menu conversion rate by 15% and led to a 70% weekly sales increase.

Enhancing Efficiency and Transparency

The supply chain must be integrated into an online ordering system to allow real-time tracking of inventory levels. This enables restaurants to control their stock and reduce wastage efficiently. Restaurants using cloud-based systems can update their inventory levels automatically when orders are placed online. This integrated supply chain solution facilitates a more efficient relationship with suppliers and ensures the restaurant has all the data needed to make the right decisions about ordering. 

Ensuring Timely Deliveries

Delivery routes can also be optimized using integrated supply chain solutions, GPS tracking, and data analysis. This allows restaurants to plan the best routes for their drivers, reducing delivery times and fuel costs. Fast deliveries make all the difference in customer satisfaction, and these integrated solutions can help provide customers with speedy and accurate delivery time estimates, plus real-time order tracking.

Automation of Inventory Management

Automating inventory management is a game-changer for restaurant owners. They can track their inventory levels in real time and automatically update stock counts. This means that being caught out by low stock levels should be a thing of the past. Automation saves time and reduces human error while ensuring restaurants are always well-stocked. 

Advantages:

• Adopting an automated inventory management system means that restaurant staff can spend less time on stock counting and ordering so that they can focus on core tasks.

• Accurately tracking inventory levels prevents over-ordering and reduces food waste.

• The real-time data on inventory levels enables informed decisions to be made about the menu and promotions.

Disadvantages:

• An initial investment to implement an automated inventory management system will be required, which can be a barrier for some restaurants.

• Some restaurant staff will likely require additional training to use the new system effectively, and mistakes could be made during the transition period.

How an Integrated Supply Chain with Online Ordering Improves the Customer Experience

An integrated supply chain means that everything a restaurant needs is managed in a streamlined way. An integrated supply chain ensures restaurants always have what they need when needed. Restaurant owners and managers should work closely with suppliers to set up efficient processes that integrate with online ordering and automated inventory management. This means that when customers place their orders online, stock levels are automatically updated by the POS system. Both customer experience and restaurant efficiency are improved by leveraging integrated supply chain technology. While using third-party apps for online ordering can be useful to expand reach, 67% of customers still prefer to order via the restaurant website directly.

Benefits of Integrating Supply Chain Solutions with Online Ordering Systems in Restaurants

Adopting a cloud-based supply chain management system with integrated online ordering is essential to maximize opportunities. Collaboration with suppliers to refine ordering and delivery processes can transform how restaurants manage their operations, improving efficiency, cost savings, better forecasting, enhanced communication, and enhanced customer satisfaction.

• Integrating supply chain solutions with online ordering systems enables real-time stock level tracking, reducing the likelihood of inventory shortages. Such efficiency ensures that restaurants remain well-stocked and significantly reduces food waste and associated costs, leading to considerable cost savings.

• Thanks to the easy analysis of customer data and ordering patterns, improved forecasting is possible. This enables restaurants to plan more effectively and greatly reduce over- or under-stocking.

• Automating ordering and supply chain processes leads to faster order processing, reduced customer wait times, and improved overall satisfaction. Satisfied customers are more likely to become repeat patrons and provide positive online reviews, further enhancing the restaurant's reputation and growth.

Conclusion: Technology Trends in the Restaurant Industry

Integrating supply chain solutions with online ordering systems in restaurants offers several advantages. While many restaurants will already have some form of supply chain technology linked to their POS systems, the technology is rapidly advancing. There are sound reasons to embrace the latest technology to enhance efficiency and customer experience further. For example, QR code payments are forecast to grow by 59% from 2023 to 2028, and with customers being more connected than ever, they will expect restaurants to offer them smart technology options. 

In addition, customers are increasingly demanding more sustainable businesses, so adopting sustainable food packaging alternatives can be good for the environment and business. Adopting automated inventory management supply chain technology allows restaurants to optimize operations and reduce costs while giving customers the desired digital options and convenience. While there are some initial investment and training requirements, as you would expect with new technology, the benefits far outweigh the initial cost and training. Leveraging integrated supply chain technology ultimately benefits the bottom line and is essential for restaurants to thrive.

About the Author

Felicity Kelly is the Head of Sustainability at Bunzl Australia & New Zealand. She assists organizations in enhancing their sustainability performance and reputation and managing their entire value chain through stakeholder engagement, communication, risk management, problem-solving, strategy development, and execution.

Felicity holds a Master's in Corporate Environmental and Sustainability Management from Monash University. She has extensive experience working across various sectors, primarily in Fast-Moving Consumer Goods (FMCG) and logistics.