5 Goals and What Supply Chain Means for Restaurant Businesses

Some of us are certainly familiar with the terms supply chain and supply chain management. Supply chain is one of the most important areas in the business world because of its direct connection to a company's competitiveness. Over time, business players have become increasingly aware of the importance of implementing supply chain in business operations. 

In businesses of all sizes, supply chain plays a crucial role in managing and overseeing the cycle chain. Starting from raw materials, payments, information from suppliers to manufacturers, from wholesalers to checkers, all the way to consumers. Its vital function makes the implementation of supply chain in business activities indispensable.

What is Supply Chain?

Source: Freepik.com

Before delving too deep, let's understand what supply chain and its principles are. Supply chain, or known in Indonesian as "rantai pasokan," is simply a series of flows of physical goods, information, and processes used to deliver products or services from the source location (suppliers) to the destination location (customers or buyers). 

In connection with this, supply chain management itself is the tool, method, or management system in implementing the supply chain. You need to understand good supply chain management so that the function of the supply chain itself can be achieved. There are two strategies you can employ to build good supply chain management. 

First, build relationships with suppliers. This is crucial because building strong relationships with suppliers is the key to the success of the supply chain. A good company will choose excellent suppliers to partner with, limiting their number to ensure optimal collaboration quality. 

The second strategy is to enhance customer responsiveness to remain competitive, then focus on the supply chain to improve customer service. One way to improve customer service is to increase the frequency of product deliveries so that customers are satisfied with the timeliness. 

The success of the supply chain in F&B businesses depends heavily on strong and effective interactions between ingredient vendors, primary packaging providers, repackagers, co-manufacturers, intermediary traders, and other suppliers.

Goals of Supply Chain for F&B Businesses

Source: Freepik.com

To understand what a supply chain is, it's important for you to know the goals of the supply chain in a business operated by a company, including F&B businesses. Here are the goals of implementing supply chain for an F&B business:

1. Enhancing customer satisfaction

In any business, including F&B business, customer satisfaction is the main goal that must be achieved and maintained so that consumers can stay for a long time. To achieve customer satisfaction, a business must be able to produce high-quality products, in this case, food or beverages, that meet consumer demand. With an efficient supply chain, business owners can monitor the types of goods needed and determine the right time for delivery.

2. Increasing revenue

The more loyal a customer is to our F&B business, the more it will increase the revenue or income of the business in the future. In addition, the business will also grow, thus increasing overall revenue.

3. Reducing costs

Through the supply chain, there is an integration of product flows from suppliers to companies and companies to consumers in an organized manner, thus reducing costs in production and distribution channels. Now, companies no longer have to spend a lot of money on procurement, production, and distribution of goods/services as they used to. With a supply chain management system, a company can reduce the costs they have to incur for all these processes.

4. Optimization of company assets utilization

In implementing supply chain in a company, companies often collaborate with software providers that will support the operation of the supply chain mechanism. With the use of this technology, companies are also required to improve the performance of employees as executors. 

Employees, as one of the company's biggest assets, will certainly strive to improve their skills and knowledge in order to apply supply chain management to the fullest. Thus, it is hoped that the utilization of company assets will also be more optimal.

5. Increasing profits

Supported by increased customer loyalty, operational cost effectiveness, and optimization of company assets, it is hoped that in the long run this will significantly increase profits for the company. If this can be maintained, then the company will be able to achieve above-average profits.

To be a winner in the company's supply chain mechanism, it is important for the company to provide products that are not only cheap but also of high quality, varied, and provided on time.

Therefore, for business owners, it is necessary to wisely choose a company that provides supply chain system support software that suits the company's needs. ESB can be one of the recommended choices for your business, with its ESB Goods feature, ESB provides B2B marketplace services supported by a digital supply chain system connected to ESB Core. 

Thus, by using ESB services, your business can realize a transparent and efficient purchasing process, reduce the risk of significant fraud, and avoid losses due to uncontrolled purchases. In addition, ESB Goods is also integrated with banking APIs within ESB Core, which can facilitate the payment process. For more information, please visit the ESB website.