FW: "MAP Insights" - BUSINESSWORLD - 21 June 2011 - Do you need an F & B management systems - Manuel Alcuaz Jr.
Manuel Alcuaz
From: map [mailto:m...@globelines.com.ph]
Sent: Friday, June 24, 2011 2:13 PM
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Subject: "MAP Insights" - BUSINESSWORLD - 21 June 2011 - Do you need an F & B management systems - Manuel Alcuaz Jr.
Many restaurants, cafes, and bars already have POS systems. Perhaps because they recognize the benefits of a POS system. Or in many cases because the malls where they are require a POS system.
However, very few restaurants have F&B management systems. Even some franchises don’t.
Perhaps this is because they have not determined Why? they need an F&B management system. And don’t know What? an F&B management system should do.
Let me first define What? an F&B management system does. In general, F&B management systems should have functionality for purchasing, inventory control, and food preparation.
At Systems Sciences Consult, Inc. (SSCI), we call our systems PIMS, short for Purchasing, Inventory, and Menu System.
We have two versions:
1. IRIS/PIMS for individual restaurants.
2. C/PIMS for commissaries of chain restaurants or franchise restaurants.
Why do you need an F&B Management System?
Why is usually defined by:
(1) objectives to attain
(2) problems to solve
Let us start with the objectives you have for an F&B management system.
Most restaurant managers and owners would usually have the following objectives:
v profitability and growth
v better customer satisfaction
v better control
v reduced cost
On the other hand, your profitability and growth could suffer because of the following problems:
v Not knowing the cost of your food items
v High cost of ingredients and suppliers
v Frequent stock outs of critical items
v Excessive spoilage
v Stock losses due to misdeclared delivery or pilferage
v Inability to compete due to high cost and lack of information
v High cost of accounting and operations staff
Objectives
Profitability and growth are usually the highest level objectives of a business enterprise.
An F&B management system contributes to better customer satisfaction thru better value of food, fresher and better ingredients.
Better value is made possible by reduced cost.
Fresher and better ingredients are made possible by good vendors and timely ordering.
Reduced cost is made possible by:
v Lower purchasing cost
v Lower holding cost
v Avoiding spoilage
v Lower manpower costs
Lower purchasing cost is made possible by:
v Competitive purchasing with multiple quotes
v Bunching of orders to get possible discounts and lower logistics cost ( i.e. free delivery)
Lower holding cost and spoilage is made possible by no over-stocking and timely ordering.
Spoilage is also reduced by good storage facilities.
Better control is made possible by:
v Proper recording
v Computation of usage with standard recipes
v Physical audits
Problems
Let us new analyze some F&B problems.
Not knowing cost of food items may result in pricing that is either not competitive or not profitable.
This situation is caused by lack of data, such as ingredient costs and standard recipes, or simply not computing because it is tedious to do.
An F&B management system would automatically re-compute food costs as soon as new ingredients are received.
The high cost of ingredients and suppliers is usually caused by poor or no canvassing and rushed purchasing.
An F&B management system would solve these problems by capturing supplier quotations to be able to compare prices, by planned orders, and updated inventory.
SSCI’s IRIS/PIMS and C/PIMS systems have two options for planned orders:
v Suggested ordering
v Party plan
Frequent stock outs are usually caused by poor inventory records and having no planned purchasing.
Excessive spoilage is usually caused by no planned ordering and overstock.
The solutions are the same as for frequent stock outs.
Another problem is stock losses due to misdeclared delivery and pilferage. This problem frequently goes on undetected due to poor record-keeping, no usage computation and no audit.
The F&B management system solutions usually include:
v Transaction recording and updating
v Ingredient usage computation
v Physical count
The high cost of accounting and operations staff is usually due to tedious manual processing.
The solution is automation. You will be surprised that the monthly cost of an F&B management system could be much less than the cost of 1 to 2 clerks!
Finally, your inability to compete is due to high costs and lack of information which automation could resolve.
(The article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines. The author is President of Systems Sciences Consult, Inc. and member of the MAP National Issues Committee. Feedback at m...@globelines.com.ph. For previous articles, please click
<http://map.org.ph/members/mappingthefuture.php?dir=MAP%20Insights>).
