How can Cloud Kitchens optimize Logistics Costs ?

Author: JustDeliveries

With the increase in food delivery apps viz., Swiggy and Zomato, there is an increase in multi outlet cafes, QSRs, cloud kitchens and restaurant chains.  The central kitchen semi prepares food and needs to be sent to outlets, mostly on a daily basis. The logistics cost incurred in this operation maybe optimized by selecting the right logistics partner.

Here are five ways to lower logistics costs for multi outlet ventures

Central Storage & Picking Stations

The availability of central storage allows all ingredients to be available and ready in hand whenever demands arise. By availing of cold storage facilities in the heart of any city, the logistics costs maybe optimized. Semi prepared food can be kept frozen for up to 18 hours for ice cream and frozen products and chilled products like pizza dough and dairy.

Warehouse Management System

The other way to optimize logistics costs is by using a warehouse management system that provides real-time visibility into the location of goods and supplies. Ensure that your 3PL partner uses the FIFO or ‘First-in-First-Out’ system. WMS systems that give real time inventory visibility on information on  near expiry stock, has reduced wastages in supply chain significantly.

Routing

Traffic and unpredictable situations are rampant on the road. Such situations provide hindrances and result in unnecessary delivery delays. Peak holidays or bad weather days can play spoilt sport. Ensure that you have budgeted for such delays with back up vehicles or with auto routing software. Organized logistics players geo fence delivery locations and share MIS reports giving real data on dleivery time compliance and temperature compliance.

On time and perfect deliveries leading to fresh food!

As a food business owner, it becomes nerve-wracking when the food doesnt reach the outlet on time.  In today’s competitive world, the demand for fresh food has become a hygiene factor. It can be strenuous to not get any info on the whereabouts of your delivery orders. Receiving damaged material or one where temperature is abused can turn loyal customers into angry customers.

Outsource logistics, its not your core business!

There was a time when F&B business owners were forced to own their own trucks! Not anymore. Do away with owning trucks and all the hidden costs of maintenance, insurance, additional management costs of fuel bill checking, driver hiring’s etc. outsource and save money!