Due to the time-sensitive nature of perishable restaurant inventory, efficient and optimized inventory order management is of the utmost importance.
For many food service businesses, inventory also makes up the bulk of their outgoing expenses. This means stock control and waste management has the ability to greatly influence an establishment’s total revenue.
By streamlining the purchase order process and intelligently managing incoming and outgoing volumes of restaurant inventory, management can drastically reduce their spending and optimize their output.
Traditionally, such a task would take hours of manual labor and number crunching. However, companies like Walmart Stores Inc. can now rely on Zip Ordering to get the job done in a fraction of the time.
5 Ways Poor Inventory Replenishment Can Hurt Walmart Stores Inc.
Inadequate inventory replenishment procedures can lead to a range of consequences, such as reduced profits and damaged customer trust.
1. Excessive Spending
When restaurants fail to monitor their purchase order approvals and supplier price changes, they may end up spending significantly more than they originally intended.
Order management is an aspect of operations that needs detailed documenting and data-backed decisions. Without this level of accountability, organizations can easily slip into uncontrolled maverick spending and large dents in profits.
2. Lack of Data Insight
The overall inventory replenishment process should be carefully recorded and analyzed to detect seasonal trends in spending or price fluctuations from vendors. This data insight can also info
Without this data insight, restaurants may have trouble regulating inventory order management and miss out on opportunities to optimize their operations.
3. Stockouts and Delays
Poor order management can also lead to stockouts and delivery delays for customers. When restaurants run out of crucial ingredients in their kitchens, they may have to stop selling multiple menu items, leading to disappointed diners and missed sales.
In order to minimize the damage to their revenue, management may decide to put in expedited orders of the inventory, racking up additional stock and shipment costs.
4. Poor Vendor Management
As seasons change and demand fluctuates, third party vendors may alter their prices for certain items. Even minor increases in restaurant inventory prices can dramatically affect profit margins when establishments order in bulk.
Management should track each month or quarter’s purchase orders and inventory costs to closely manage vendor relationships and encourage further negotiations when price increases occur.
5. Human Errors
When inventory order management is done manually or with inadequate tools, businesses risk exposing their processes to human errors. Incorrect data entries or inaccurate purchase orders can skew the organization’s inventory data significantly. This can lead to further mistakes for future purchasing decisions.
How Can Zip Ordering Help Walmart Stores Inc.?
With the help of Zip Ordering’s user-friendly interface and advanced features, Walmart Stores Inc. can effortlessly eliminate the above concerns and optimize their replenishment processes.
Below are some of Zip Ordering’s top features and benefits.
Zip Ordering allows restaurant managers to place their inventory orders on any mobile or tablet device to streamline the process of managing orders. With the software’s data-driven ordering suggestions management will be able to maintain optimal stock quantities at all times to maximize profits.
With Zip Ordering, restauranteurs can simultaneously eliminate the guesswork and stress from their replenishment procedures.
Increased Ordering Accuracy
With Zip Ordering, users can create custom order guides and instantly import supplier catalogs for accurate purchase order approvals. The program also sends high order quantity alerts to prevent mistakes in large batch orders and low inventory alerts to inform management when another order should be created.
For foolproof document management, images of invoices can be attached to every order to eliminate the need for manual file storage.
Zip Ordering offers detailed price trend reports to inform users when their ingredients prices suddenly increase or decrease. When a supplier begins raising their price points, management can be immediately alerted and can explore more affordable vendors directly through the app.
This supplier search feature can also be utilized if the usual vendors experience disruptions and delays. With this tool, restauranteurs can always establish back-up suppliers to prevent stockouts and missed sales.
Real-Time Data Visibility
Furthermore, Zip Ordering has a comprehensive reports page that visualizes critical product totals and cost analyses of current, future, and past orders.
With real-time and cloud-based syncing capabilities, management can rest assured that all graphs and data points are accurate and up to date. Users can even filter graphs and charts by date, vendor, product, and more.
From cost control to increased data visibility, Zip Ordering’s benefits are endless. By taking advantage of the above capabilities, Walmart Stores Inc. can begin reducing their inventory costs and increasing efficiency at every location from day one.