Most hospitality businesses have traditionally focused on efficiency in front-end operations. Yet, it is imperative to consider how this efficiency can be extended to optimising back-end processes. In the context of hospitality, the enhancement of efficiency in back-end operations is even more significant as it directly impacts the delivery of the ultimate guest experience, especially in managing inventory and stock.
Frequent monitoring of necessary supplies, maintaining cost control, and reducing wastage have all emerged as critical concerns within the industry, compelling businesses to implement efficient inventory and material management systems. In fact, according to Global Market Insights, the Inventory Management Software Market size crossed USD 3 billion in 2019 and is estimated to grow at a CAGR of over 5% from 2020 to 2026.
The market is fuelled by the shifting customer behaviour of paying more for a truly memorable experience.
Factors to consider when purchasing a hospitality inventory management system
Choosing the right system is vital as it allows for effective supply chain management, cutting off all unnecessary costs.
1. Focus on smart and cloud technology
With the recent evolution of technology, businesses and their respective operations have increasingly embraced the cloud as their primary platform. Cloud-based solutions have emerged as highly advantageous options, offering many benefits, such as the ability to consolidate multiple operations, robust disaster recovery capabilities, enhanced security measures, and real-time access to critical information.
2. Integration with other systems
Data sharing and integration play a pivotal role in the hospitality industry, particularly when managing multiple properties and utilising multiple management solutions. Understanding this modern requirement, it is vital to focus on inventory solutions that incorporate this feature into their capabilities, effectively integrating with other technology solutions to offer better and more effective operations. This ensures real-time, uninterrupted data flow across multiple systems, departments and units, enhancing operational efficiency and consistency.
3. Recipe management
When managing stock in hospitality establishments, especially in the food and beverage (F&B) sector, advanced recipe management is not just a feature—it is a crucial tool for success. Handling recipes with precision and efficiency can impact the overall quality and consistency of the dishes served and, therefore, guest satisfaction. Advanced recipe management streamlines the complexities of kitchen operations, making precise calculations of the ingredient quantities, tracking ingredient needs in real-time and reducing material wastage.
4. Better control of inventory processes
The goal of digital migration is to ensure smooth business flow. When choosing the right digital solution to manage stock, it is important to focus on platforms that alleviate employees’ responsibilities via digitised purchase order creation, efficient data exchange with suppliers, and accurate report generation, enhancing overall operational efficiency. A centralised view of the inventory supported by accelerated but accurate processes and reports of a comprehensive view of the stock performance can give businesses oversight over all of their operations.
5. Real-time access to data and insights
Data and analytics are crucial for an inventory control system as they enable data-driven decision-making and real-time optimisation of inventory levels as well as planning. By analysing the data, businesses can optimise stock levels, control costs, and enhance operational efficiency. This leads to reduced carrying costs, minimised waste, and improved overall management, ensuring that the right products are available when needed. Consequently, this empowers businesses to stay proactive, enhancing their service delivery and profitability.
Raw material cost was the most prominent supply chain threat last year.
According to KPMG report on supply chain trends, 71% of global companies have mentioned raw material costs as the most prominent supply chain threat in the year 2023. This means that an efficient material management system is not just another trendy tool to add a business’ technology investment; it is becoming a necessity for addressing the challenges faced by the hospitality industry.
