News

How improved data visibility can help restaurants/stores control variable costs

3/8/2015

Effectively managing your supply chain and keeping variable costs low go hand-in-hand. For the most part, the two primary drivers of variable costs in a quick service restaurant or convenience store are product costs and labor. As customer demand increases or decreases, restaurants must adapt their order and inventory levels and labor to reflect the amount of business they're doing.

This sort of agility isn't easy to achieve with older inventory management tools because they often don't provide an easy look at the relationships between order history and sales forecasts. An SaaS application with a comprehensive dashboard would improve the visibility restaurants and stores have into their data and help them manage their variable costs.

"Data-driven insights into your historical data you removes the subjectivity from the ordering process"

Improved inventory management
In successfully managing inventory costs, managers must order enough ingredients or products to meet the forecasted customer demand without over-ordering and creating waste. This process requires weeks' worth of historical sales data in order to make an accurate projection for future demand.

An SaaS application makes it easy to enter data at various points in the supply chain and use it later to make informed decisions about the exact quantities you need to order for each ingredient and product for sale. In addition, with sharper, data-driven insights into your historical data you remove the subjectivity from the ordering process, streamlining the product mix to ensure you have exactly what you need with minimal waste.

Reduction of personnel costs
By improving your visibility into your sales data, you'll be able to pinpoint the exact number of employees you'll need on a shift-by-shift basis simply by looking at the level of customer traffic at various times in the day. Knowing this, you'll be able to schedule only the personnel you'll need and no more, ensuring that you aren't overpaying for labor by overstaffing on a certain day.

One of the less obvious benefits of increased data visibility is the labor force reduction that can come with eliminating inefficiencies in your inventory management process. Many businesses have to hire extra personnel just to handle the disjointed data collection and sharing that comes with older inventory management platforms. By upgrading to a simpler SaaS platform, inventory management becomes a more straightforward process, reducing the need for extra help.