Supply Chain Strategies of a Restaurant Literature Review

Document Type:Thesis

Subject Area:Management

Document 1

During this period, sixty-four percent of the American citizens owned at least one device. Today, many organizations have responded to the shift by taking their conversations with clients to mobile forums. In the United States of America, the restaurant industry has taken advantage of the multifaceted dynamics attached to technology to change the manner in which they conduct businesses. For example, Subway, Starbucks, and McDonald's use mobile phone applications to explore and meet the needs of the ever-changing demands of customers. Many restaurant applications offer various benefits such as ordering and paying in advance, examining the menu, loyalty frameworks that enable clients to earn points and rewards, and playing games while enjoying their services. Any firm that considers such technological changes as a luxury is likely to fail because they may not be in a position to compete favorably with other restaurants in the current environment (Nel, & Badenhorst-Weiss, 2011). Companies that have designed their systems to engage with consumers using such methods have gained advantages that are profitable compared to those from other channels. A research by Connect Mobile Innovation Summit showed that in most cases customers that use mobile payment from time to time are known to spend more than consumers who stick to the traditional technique of ordering (Mobile Payment Innovations, 2018). The revelations encouraged more restaurants to invest most of their resources in client-based technology. Even though there are increased benefits linked to increasing customer spending attached to mobile ordering techniques, the framework is equally likely to establish demand trends that challenge companies in different ways.

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Many restaurants reported that they received more amounts from mobile ordering than in-store orders. For example, Taco Bell restaurant suggested that mobile application orders are twenty percent higher than requests done using traditional system. Evidently, the supply chain has to change, develop, and adapt to changing needs in the restaurant industry as a result of these advancements so that to be in a position to continue and maintain high levels of accomplishments. Using archaic supply chain technology will dispose a restaurant to all manner of frustrations and eventual failure. Failure to adapt to the 21st-century consumer technological needs can alter and disrupt the existing flow of revenue. The framework mounts a lot of pressure on the companies to be consistent, attain quality standards, and enhance food safety (Moller, 2006). The increasing stress in restaurant supply chain also comes from weather disruptions and changes in the prices of commodities (Ouabouch, 2015).

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Organizations need to utilize every available technique to enhance the operations of the supply chain networks. Supply chain should focus on food safety and traceability. Restaurant managers need to identify and examine various issues that are likely to affect food security and be able to track any damages to their primary source. Advice should be sought from store managers from time to time, provides valuable updates to the supply chain department thereby helping I to create appropriate modifications that are engineered I delivering best outcomes with low wastage ad shortage. Restaurant’s supply chain should create visibility. Use of technology such as mobile platforms establishes varying buying characteristics; particularly people interested in dinner are more likely to scout for expansive menus. Managing these differences successfully requires integrated access to the store sales, stock, and supplier ability to prevent inventory- outs (Madhavan, Kaliaperumal, & Muthuvel, 2015).

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Sometimes restaurants experience cases of stranded goods. Applying technology in the supply chain is essential because it allows restaurants to explore supply options, examine cost patterns of materials, evaluate cost tradeoffs between different alternatives, and bolster the most beneficial product. Foodservice companies should use technologies that explore the issues addressed herein that are critical to supply chain abilities thereby helping them to increase their profitability and expand the market share. A dynamic technology model that integrates advanced capabilities from the supplier to the user and then to the client's fingertips is the best way to the restaurants to offer their products in the most effective manner (Al-Odeh, 2016). Firms such as McDonald’s that have utilized this method are known to be market leaders. Companies that need to attain the same success must examine the ability of their technology supply chain with more focus on ensuring it is set to be successful both in the present and in future (Swink, 2011).

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Supply Chain Strategies: Changes in Customer Order-Based Production. Journal of Business Logistics, 32(4), 361-373. doi. org/10. j. doi. org/10. bse. Comas Martí, J. Seifert, R. com/2017/06/08/how-to-deal-with-restaurant-supply-chain-issues/ Laari, S. Töyli, J. Ojala, L. Supply Chain Perspective On Competitive Strategies And Green Supply Chain Management Strategies. doi. ijbpscm. Maras, E. How New Consumer Demands Challenge The Foodservice Supply Chain. Food Logistics. Retrieved 24 March 2018, from https://www. doi. org/10. ijnvo. Nel, D. Badenhorst-Weiss, J. Retrieved 24 March 2018, from http://406wgw3346mpao4bj1jjj3q1. wpengine. netdna-cdn. com/wp-content/uploads/2015/08/TECHNOMIC-Stronger-Bottom-Line. pdf Ouabouch, L. Swink, M. Managing Operations across the Supply Chain. New York: McGraw-Hill Irwin. Mobile Payment Innovations Summit. Paymentinnovations.

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