Known for extremely tight competition and narrow margins, success in the food and beverage (F&B) industry requires constant effort to maintain market share. Companies must contend with new entrants, changing consumer tastes, complex regulatory standards, and economic fluctuations. Effectively managing F&B operational costs is crucial for maintaining profitability and optimizing the efficiency of operations.
The inclusive F&B industry ranges from restaurants, cafeterias, cafés, fast-food joints, and catering businesses to food manufacturing operations and transportation services. Yet no matter the F&B category, all businesses can benefit from food and beverage maintenance software.
As a result, F&B companies continue to embrace technology and digital transformation to meet common industry challenges and control operational costs.
Here’s how.
CMMS to Reduce F&B Operational Costs
Cost-saving with CMMS in the F&B industry starts with gathering data, managing inventory, handling inspections, and keeping detailed records of compliance. F&B companies use CMMS tools to manage costs in five major ways.
#1: Food Safety & Labeling
Your brand’s reputation relies on the safety of your products. However, adhering to ever-changing food safety and labeling regulations presents constant challenges for F&B manufacturers. In an industry where the slightest oversight can lead to serious repercussions, staying abreast of these regulations is imperative. Agencies like the Food and Drug Administration (FDA) and United States Department of Agriculture (USDA) continuously adapt and refine their standards. As a result, keeping up with these changes can be a daunting task.
CMMS can help track regulatory compliance requirements and safety inspections, reducing the risk of fines and legal issues associated with non-compliance. With an organized and automated approach to scheduling and conducting safety inspections, you can identify and fix potential issues before they lead to non-compliance. This proactive approach reduces the risk of fines and legal entanglements, thereby safeguarding a company’s reputation and financial stability.
#2: Supply Chain Disruptions
Transportation problems, weather-related challenges, and the COVID-19 pandemic brought attention to vulnerabilities in the supply chain. Securing a consistent and reliable supply of high-quality ingredients, especially for global products, can be difficult. International trade agreements and tariffs impact the cost and availability of your ingredients and products. These issues affect raw materials and food ingredients, as well as parts and supplies for equipment and assets. Additionally, when critical inventory or spare parts are not readily available, you may be forced to rely on expensive expedited purchases.
CMMS can help F&B companies track data on stock levels and usage patterns, allowing you to forecast supplies or spare part requirements accurately. Inventory management in food service saves money by avoiding extra storage costs and rush orders. It also supports operational workflows and customer satisfaction. As a result, operations run smoothly even in the face of unexpected challenges, and customers can rely on the business for timely and dependable service.
#3: Sustainability
Meeting the demands of consumers for healthier, sustainable, and convenient food options presents many challenges for F&B companies. That includes the pressure to reduce your environmental impact, such as packaging waste and carbon emissions. Additionally, companies must continually adapt to the changing demand for products that align with health and wellness trends, such as organic, non-GMO, and clean label foods.
CMMS can help with sustainability efforts by minimizing waste generation, optimizing production processes, and tracking and managing energy usage. As a result, F&B companies can implement cost- and energy-saving measures, such as optimizing equipment schedules, maintaining equipment for maximum efficiency, and reducing energy waste. This strategy not only reduces your operational costs but also contributes to a greener footprint. Additionally, regular maintenance of equipment and machinery ensures that they operate efficiently and last longer, helping to extend the lifespan of equipment.
#4: Asset Management and Maintenance
Manufacturing and restaurant asset management—associated with acquiring and maintaining kitchen equipment, refrigeration systems, ovens, stoves, and other machinery—constitutes a significant portion of the operational expenses for F&B companies. These expenses include not only the initial outlay but also your ongoing upkeep, repairs, and replacements necessary to ensure safe and efficient operations. Properly managed equipment helps companies provide high-quality products, adhere to safety regulations, and optimize operational efficiency.
To keep assets in good working condition, ongoing maintenance is essential. CMMS helps schedule the routine inspections, cleaning, and repairs necessary to prevent equipment breakdowns and ensure the safety of employees and customers. Preventive maintenance also can help extend the lifespan of your equipment and reduce the likelihood of expensive emergency repairs. Over time, reducing the costs associated with fixing or replacing malfunctioning or obsolete machinery can improve operational efficiency.
#5: Transportation and Delivery
The charges associated with the transportation of goods make up a critical portion of your operational costs. These expenses encompass the costs incurred in the process of moving products to and from suppliers, distribution centers, and customers. Transportation and delivery also play a pivotal role in your supply chain, as it directly affects the timeliness, efficiency, and cost-effectiveness of F&B operations.
CMMS software helps with the proper maintenance of the transportation fleet by preventing breakdowns, ensuring safety, and prolonging the lifespan of vehicles. That includes automating the schedules of your maintenance tasks such as regular oil changes, tire replacements, engine repairs, and other upkeep. Strategic decisions regarding the transportation of goods can also have a significant impact on customer satisfaction and the company’s overall competitiveness.
Effectively Managing F&B Operational Costs
Effective management strategies with CMMS can help F&B companies control costs while ensuring that products are delivered in a safe, timely, and reliable manner.
MPulse can help you maximize F&B CMMS benefits, including streamlined maintenance processes, reduced operational costs, and improved productivity and profitability. Contact us to get started or get a free trial.
