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Inventory Management

Inventory Management for the Food Industry

April 23, 2019


Inventory management is essential for any and all industries, but it is particularly important for the food industry. The food industry is complex and has many different components. One of the main differences that set the food industry apart from other industries is the quantity of perishable items. They face a number of challenges such as overstocking, under stocking, reducing waste, and ensuring that all food is fresh. Throughout the food industry, it is key to have the right inventory management tools to manage the supply chain, delivery, and the safety of the goods.

Why is inventory management important for the food industry?

Each restaurant replenishes their inventory differently. There are many different factors and considerations involved, such as what items are consumed during what time of the day.

This makes it difficult to forecast the demand, by virtue of the fact that people do not eat the same thing every day. What’s more, challenges like quality, freshness, and health concerns need to be considered when ordering and stocking food.

If restaurants stock too much of any particular item and not all of it is used within a period of time, it results in food going bad producing a loss of money for the business. Similarly, if restaurants under stock and run out of items, customers cannot be served, this may result in a loss of clientele.

This industry is growing and faces tough competition from every direction. An efficient inventory management system is the difference between going out of business and becoming a leader in the industry. Fast food chains like McDonald’s, Subway, KFC, etc., are constantly improving their inventory management strategies to achieve the best performance.

By having a strong inventory management system, you can:

  • Have efficient processes
  • Reduce the amount of waste
  • Optimize food safety, decreasing food health-risk problems
  • Enhance transit and packaging processes, reducing costs

3 Reasons Inventory Management Matters in the Food Industry

A proper inventory management system helps businesses in many different ways, specifically with recording food waste, stable pricing, and consistency.

  1. Recording Food Waste: Keeping track of products is important for any industry. In the food industry, recording food waste facilitates targeting the weakest areas and identifying where the losses are occurring. Tracking the important data, such as spoiled ingredients, dropped food, or unfinished meals, allows you to notice trends, thereby allowing you to take the necessary action to improve.

 

  1. Stable Pricing: No one wants the prices of a favorite menu items to change. But, there are a great deal of external factors that are outside of your control that require decisions. By managing your inventory, you can make these decisions concerning the menu, keeping returning customers happy!

 

  1. Consistency: You want to aim for consistency if your business has multiple locations. You want easy tracking and excellent quality control throughout your supply chains. With a strong inventory management system, it is easy to track all of your goods, ensuring quality no matter what location your customers choose.

The Benefits of Inventory Management for the Food Industry & How Clear Spider can help your Business

There are many benefits that come with using an inventory management system. Since this industry deals with items that have a short shelf life, it is vital to have full visibility. You want to have the ability to trace, track, and account for each and every item in your inventory supply chain. With the Clear Spider system, you have accurate, real-time visibility of items stored at all locations.

Another benefit is how highly customizable Clear Spider’s system is. We take your business workflows and mold the back end processes to mirror them. Providing full capability to modify and refine all of the critical components of your system so that everything in your supply chain runs smoothly. In addition, an inventory management system improves efficiency and automation, therefore boosting your business’ overall profitability.

Summary

In the food industry, every second counts and every item in your inventory has to sell or be used by a certain date. You want to ensure that your food is fresh, and that you are not overstocking or under stocking. This industry has a lot of competition; which is why an efficient inventory management system is the difference.  Clear Spider can help you stand out against your competitors and keep your customers happy and coming back.

See how Clear Spider will help your business, schedule a demo today!


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