Being aware of lead times for your restaurant equipment and supplies is not only vital but can also make or break the success of your restaurant operation. Timely delivery of the necessary equipment and supplies is crucial for maintaining a smooth workflow and ensuring customer satisfaction. By understanding the lead times associated with different products, you can effectively plan and manage your inventory, avoiding any unnecessary delays or shortages.
Matthew Sheinfeld, Director of Purchasing at Sam Tell for over 13 years, works with a number of manufacturers to effectively manage inbound inventory. Joining us for a Supply Chain Q&A, Sheinfeld cuts through the noise to answer a truck load worth of questions.
What has the supply chain looked like in 2023?
Matthew Sheinfeld: The current state of the supply chain is continuing to recover from the pandemic. While 2020 seems light years away, we still are seeing recurring effects. We have not seen much by way of material shortages, which makes me think we are heading back to pre-pandemic levels. The two biggest challenges causing delays are labor shortages and limited trucking capacity. Manufacturers continue delaying production time due to being short staffed. I notice LTL truckers are short drivers as well. This year, LTL pick up appointments and deliveries are being missed by three to four days. Freight companies are taking longer to consolidate freight in their local hubs. With YRC Freight going out of business, that will cause a ripple effect throughout the industry. Equipment lead-times have improved drastically. A year ago, certain refrigeration products could take 20-24 weeks to procure. This year, those lead times are down near one to two weeks. This is the first year since 2019 that manufacturers have begun stocking again. More of our suppliers have on hand inventory. That makes life much easier from a purchasing perspective.
What changes have you made in the purchasing department to respond to any supply chain issues?
MS: Our purchasing department is split into two categories: smallwares/tabletop and equipment. Both divisions needed to react accordingly to a changing environment. Understanding that product is taking longer, we needed to increase our stocking par level. Looking at our top 200 products, we increased on hand inventory from one month to three to four months. We needed to adjust our reorder points to acclimate to the fluid environment. Our buyers focused on keeping enough safety stock to avoid customer back orders. One of our techniques is to order products in pallet quantities. By doing so we can have ample inventory wasting no bin space in our warehouse.
On the equipment side of the business, we work almost opposite. Projects tend to have a longer timeline. Now that manufacturers can fulfill orders in weeks instead of months, we make sure to have specific delivery dates on all equipment coming into our warehouse. Managing inbound inventory correctly takes a great understanding of our vendors’ lead times along with our customers’ needs. We hold our vendors accountable for meeting our desired dates.
What changes have we made in the warehouse to respond to any supply chain issues?
MS: Increasing our inventory had an enormous effect on our warehouse space. We added additional racking space, relocated overstock, and most importantly added an additional local warehouse. This new warehouse space has allowed us to store much of our large equipment. Many things can go wrong as you start outgrowing your space. Adding this space has been by far the greatest asset to our warehousing operations. Our crew can maneuver and locate items much faster resulting in an overall better experience for our customers.
What do you suggest our customers do to plan for delays? How far ahead should they plan to place an order?
MS: Coming off the pandemic, I think our customers’ expectations changed quite a bit. They seemed to place larger orders more frequently. Our customers still need to be mindful that there continue to be challenges in the supply chain. They need to make sure they are staying in front of their supply needs. For special order items, I would say to place an order a minimum of two weeks prior to their need by date. This is a safe cushion to avoid scrambling at the very last minute.
What does the landscape look like going into Q4 2023? What about early 2024?
MS: Looking ahead, I am extremely optimistic that the supply chain will become an asset for us and our customers. Lead times continue to decrease across all product categories. That will only get better as we move into 2024. The importing challenges we saw in the past year have subsided. I do see the trucking industry causing slight disruptions. Most of our shipments come in via LTL. More carriers are handing off freight to multiple terminals causing increased transit times. That is not going to change over the next year. With less drivers and less capacity, unfortunately we need to be prepared for delays. Regardless, the supply chain will be in a better position heading into 2024.
