QSR BACKROOM CASE STUDY
The world’s largest QSR had a problem. It was stuck in a pencil and paper system of taking daily, weekly and monthly inventory. It needed to gain control of its inventory costs and enable the restaurant staff to make faster and more accurate food and packaging orders to their distribution center.
The company’s Supply Chain Team knew that they possessed a solid understanding of what benefits the correct solution needed to provide both to the company and their Franchisees, but they lacked the expertise to design and implement a complete, restaurant solution. In addition, they had an older, non-traditional legacy back office system for the restaurants that would need to be considered for any solution to be effective.
As part of the solution, working with Company experts, Digitrac Systems helped to define the goals of the project. A bar code solution was decided on, and the following goals were established:
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Enable restaurants to take more accurate inventories to produce better DC orders and calculate accurate food and paper cost reports
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Save 2-3 hours a week of management labor costs – keep the managers on the floor of the restaurant and out of the stockrooms
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The barcode solution could not push costs down the supply chain to the suppliers – it had to provide value with all links in the chain.
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Reduce total amount of dollars tied up in excess stock in the restaurant – Having accurate orders lead to less over ordering.
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Measurably reduce the amount of food items wasted due to running out of shelf life. This goal was one of the more impactful to the profitability of the restaurants.
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Enable distribution center cost savings. More accurate orders reduce special deliveries due to out of stock product while enabling better load planning, and equipment utilization. Due to the size of the company’s operation, this savings alone was millions of dollars a year.
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The solution needed to be simple to execute on a daily, weekly and monthly basis. Everyday staff at the restaurant could complete the duties that previously required management to complete
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The equipment and software needed to be available in multiple languages, be robust enough for a QSR environment, scalable to 30,000+ locations, and be upgradable.
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The solution would provide a ROI in less than 12 months.
The experts with Digitrac Systems worked shoulder to shoulder with the company's Supply Chain and I.T. teams along with local Franchisees to provide a bar code solution that met the financial, operational, and accuracy goals and interfaced correctly with the legacy back office system at the restaurants.
Digitrac personnel worked in the restaurants with the company staff and Franchisees to design, test, and develop restaurant staff training materials needed to execute the barcoding inventory and ordering solution.
Digitrac continues to provide complete on-going support – repair, replacement and upgraded equipment as needed – all located in the USA.
