The food production world is continuously evolving. The pressure on food producers and manufacturers to deliver better and more sustainable products has been increasing than ever before. And this makes turning to data analytics not just an option but a necessity. Data driven decisions play a vital role in driving the success of any business. Thus, there is no denying the fact that data is becoming the backbone of successful food service businesses at a fast pace. From supplier relationship management to improving operational efficiency, data can do it all. Here, we will delve into the ways and challenges data driven decisions help you navigate seamlessly and ultimately help you establish a profitable food service business.
Before going any further, let’s find out what data driven decision-making means.
Defining data driven decision-making
Data driven decision making is defined as the process of gathering data and analyzing it to arrive at the best decisions suitable for the suppliers, food manufacturers, and distributors. The food service industry can leverage data driven decision making for various purposes. Let’s find out how.
Supplier relationship management
Data is not just about giving a snapshot; it also serves you with the continually evolving picture of business operations. It helps you find out the areas of improvement and in what areas you can tweak your approaches as per the latest data. Consequently, it fosters better communication with the restaurants you are supplying your services to, thereby forming better relationships.
Restaurants can select suppliers with precision.
Choosing the right suppliers is the heart and soul of the food production industry. If the restaurants go wrong in taking any step in the production process or selecting the right buyers, they will have to compromise on the quality of the products, which they can’t afford. And who knows, they might face some regulatory challenges. So, it’s important to find the right supplier for the restaurant to manage the food service operations effectively. Using data analytics, restaurants can assess the suppliers on the basis of quantifiable metrics like quality consistency, price fluctuations, and delivery times. This leads to not only informed decision making but also helps establish efficient partnerships that are profitable in the long run.
Improves operational efficiency
Efficiency holds supreme importance in the food service industry. And restaurant data analytics solutions play a vital role in streamlining operations. For instance – You are a food supplier who prepares lip-smacking hot dogs and is located in the USA. Now, you can use the data analytics tool to put the filters of location/province/region where you want to supply, select the dishes that you have expertise in, select the business type, and some more factors to get accurate results of the restaurants that are most likely to be interested in your services. This information will help you get the necessary contact details of the restaurants so that you can contact them directly and finalize the deals. Thus, it results in increased operational efficiency and undoubtedly optimizes resource allocation.Â
Optimizing product assortment
Food service suppliers can take a look at the data and optimize the product assortment. Here is how – they can see how much the demand for their product is changing. Keeping such insights in mind, suppliers can curate the product portfolio and ensure that they offer the most appropriate and relevant product to their restaurant clients. Suppose a supplier deals in providing fruits and vegetables to the restaurants. Now, he can contact the restaurant for their sales data to see whether the demand for the fruits and vegetables he provides is growing or not. If it is, he might think of expanding his product line to serve a greater variety of fruits and vegetables catering to the wide preferences of the restaurants and, ultimately, to the end customers.
Managing inventory
Data driven decisions help the food service industry manage its inventory. Suppliers and manufacturers can forecast demand more accurately through data, which makes inventory management more effective. Some data tools allow you to analyze external factors like weather patterns, seasonal trends, and past data to accordingly adjust their inventory levels. For instance – You supply a special type of ingredient. You can use data to predict increased demand for this special ingredient ahead of major events or holidays. In this way, you can prevent stockouts and ensure that you have sufficient inventory to serve your restaurant clients the best way. All in all, it minimizes the carrying costs and makes your business operations easy to manage.
To make a long story short
Believe it or not, data driven decision making is considered the bedrock for gaining success in the food service industry. By gathering the required data, you can form better relationships with the restaurants, improve your operational efficiency, and manage inventory effectively. Therefore, unlock new opportunities with data driven decision making and taste the sweetness of success in your food service business.
