QSR Chain Saves on Resources with New Materials Distribution Technology | Restaurant
Leveraging RRD’s store profiling capability leads to new levels of efficiency in materials management
A national quick service restaurant chain operating more than 2,400 locations in 18 states was transitioning from a majority of company-owned stores to franchise operations. To support store operations, the company was coordinating with a number of vendors for signage and other materials.
Individual store requirements varied from one store to the next, causing difficulties in managing quantities and items. Some stores would receive too much material, some stores would receive too little, and material for a new store would arrive at different times, creating opportunities for loss and damage.
Specific concerns included:
- Materials were delivered at multiple times from multiple vendors, creating confusion and adding cost
- Limited storage for material arriving too early resulted in damage and lost material
- Inconsistencies in color and quality of materials
- A need to consolidate multiple warehouses and refine the fulfillment process
To address these concerns, RRD introduced its proprietary ISM Store Profiling System to the client. This technology-based system allowed the customer to precisely target the right amount of material for each store location.
Because the system captured detailed information on each store, precise reporting on quantities, sizes, and materials was generated. The stores’ profiles enabled accurate budgeting and ordering of future rollouts of material, without the variation and loss experienced in the past. The system ensured that materials arrived on a scheduled day instead of having batches of material show up randomly.
The ISM Store Profiling System also empowered store managers to coordinate changes at their respective locations as needed, using a centralized contact at the company’s headquarters. Subsequent push changes only required a few clicks in the system.
With RRD's ISM Store Profiling System, this client has gone from forecasting and manually managing rollouts to saving money and implementing results-oriented program improvements. The client has experienced the following benefits:
- Average savings of $1M+ annually
- Obsolescence and overage rate reduced to 3-5% from 10-15%
- RRD-managed store database and maintenance services
- Reduced costs for offset printing versus screen printing