Supply Chain in Paulina

The present environment of the restaurant industry in Azerbaijan is highly competitive since it is a rapidly developing and extremely profitable business. According to the State Statistics Committee of Azerbaijan Republic (http://www.stat.gov.az/source/catering/az/6_10.xls) there were 4083 companies engaged in this sphere in 2014. Therefore, apart from other areas, already present restaurants as well as newly opened ones must give priority to ensuring stability within the corporate performance. There are a number of obstacles faced by the managers of the catering companies such as inventory positioning, reducing lead times, outsourcing and appropriate supplier contracts, however, depending on the restaurant’s size, its clientele and location, each restaurant attempts to find the most successful tools to deal with its own drawbacks.

Restaurant outputs production may be introduced as a cycle consisting of the stages of purchase of the products, their delivery to the warehouse, storage, release for the main production cycle, preparation of the dishes and further sale to the consumers. In order to survive and operate effectively under such conditions, it is already not sufficient for an entity just to produce the goods to the maximum practicable extent, fulfilling its own internal plans, but it is also necessary to be able to sell these products successfully onwards as the targeted public can be very fickle.

The purpose of this paper is to analyze supply chain management in Café Paulina, as well as to provide recommendations to make its operations more efficient and profitable. The enterprise is located at 21B, Talat Shikhaliyev str, Baku, Azerbaijan. It is a relatively new entrant in the restaurant market operating for 10 months period by now. The restaurant provides European and national cuisine and is able to accommodate up to 50 guests in one large room. Paulina Café possesses a warehouse on the first floor of a two-storey building.