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From Initial Order to End User, this Case Study Illustrates Typical Restaurant Equipment Logistics Impacts:
In this scenario, “ABC Restaurant” has experienced hours of communication lag resulting in multiple days added to the final deployment schedule. After nearly a week of cumulative, cascading delays, the restaurant still has no replacement equipment, but has received invoices from everyone in the chain, and has incurred significant additional revenue losses totaling $2400 – more than double the initial estimate.
REVENUE LOSS PER DAY: $300/ INITIAL EXPECTED EST. LOSS: $2100
- Last Monday, “ABC restaurant” ordered a replacement fryer from the distributor for a Dallas, TX store location. Time was of the essence – the restaurant’s fryer is down and it is incurring revenue loss due to lost business.
- The distributor places the order with the manufacturer to ship from Bow, NH to arrive in Dallas, TX on Friday.
- ABC does not have room to store the fryer even for a couple of hours, so a temp warehouse facility is contracted to store the equipment.
- A facility services contractor is scheduled to uncrate and set-in-place at the restaurant on Saturday night.
- An authorized service agent is scheduled to connect and make the fryer operational on Sunday.
- The truck from the manufacturer breaks down in Mississippi on Friday morning. The truck repairs were completed Sunday morning. Updated scheduled arrival: Sunday Night. $900 ADDITIONAL REVENUE LOSS
- A few hours later the warehouse informs them that the space is not available. $300 ADDITIONAL REVENUE LOSS
- Sunday night, a new warehouse is arranged and can take delivery on Monday.
- The facilities technicians now have a job at McDonald’s in Houston, TX on Monday and a few hours later determine that they cannot pick up the fryer from the warehouse and install it until Wednesday. $600 ADDITIONAL REVENUE LOSS
- The Authorized Service Agent is contracted by Chili’s in Austin, TX on Wednesday and cannot install until Friday. $600 ADDITIONAL REVENUE LOSS