Updated supply chain saves restaurant chain millions

New technology is helping Darden Restaurants save millions of dollars by building a more efficient supply chain.

The parent company of Olive Garden and Red Lobster purchases more than $3 billion worth of food from global suppliers. Recently, Darden completed an upgrade to its supply chain that will allow it to electronically track goods as they move through its system, from purchase to delivery. This technology is expected to help the company reduce waste and preserve the freshness of its food.

Upgrades to its computer system will allow the company to more accurately predict how much food is needed in its thousands of restaurants, while also tracking the demand of specific products. Better forecasts and reduced waste are expected to save the firm $45 million each year.

Most companies could benefit from similar changes to their distribution networks. New mobile technology makes it easy for firms to track product as it moves through the system, which can increase the flexibility and accuracy of purchases. A good supply chain will not only save the company money, but will get the items to the right place at the right time.

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    File Under: CPG Industry