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Eldercare Review | Friday, February 09, 2024
The senior living industry confronts challenges linked to inflation and supply chain disruptions, impacting resident satisfaction
FREMONT, CA: The senior living industry is no stranger to challenges, but it has faced many issues requiring innovative solutions in recent years. Inflation and supply chain disruptions have created complex problems for senior living providers. With shortages and increasing food costs, maintaining high resident satisfaction while managing costs has become a paramount concern. Whether a senior living community is large or small, it must grapple with these challenges while seeking sustainable solutions.
Senior living occupancy rates have shown improvement, but economic uncertainties continue to mount. The dual forces of rising inflation and supply chain disruptions have substantially strained senior living communities, regardless of their size. These communities constantly struggle to manage costs effectively while ensuring that residents remain satisfied. One notable issue that has arisen in recent times is the frequent need for substitutions or encountering out-of-stock notices, a challenge that's not uncommon in the hospitality industry. These occurrences have surged, prompting senior living providers to scramble for alternative solutions to meet their residents' needs. However, introducing dedicated supply chain resources has provided a robust solution to this problem. These resources offer complete, end-to-end management of all food and non-food products arriving at the facility and provide weekly reports detailing substitutions and out-of-stock items, allowing for agile plan adjustments.
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Managed order guides have also proven invaluable in directing expenditures to the right areas, especially when supply chain dynamics change. These tools allow senior living providers to make cost-effective choices, optimizing their use of resources. Managing the escalating costs of food is a prevalent supply chain challenge in senior living, often posing one of the most intricate navigational tasks. Access to dedicated supply chain resources affords senior living providers greater access to contracted pricing, which helps mitigate pricing volatility within the community. As food prices fluctuate, having stable contracted pricing can be a game-changer in maintaining cost-effective operations. Another benefit of these resources is menu engineering, a tool that aids in adapting to price increases within a fluctuating market.
Another area that consumes a significant portion of the day-to-day operations in senior living communities is the management of relationships with suppliers. This process often entails countless hours and resources devoted to emails, phone calls, and supplier meetings. The burden on the dining team and Dining Service Director is significant. However, this burden can be dramatically reduced through an integrated support team in collaboration with a strategic partner. Additionally, consolidating all foodservice expenses into a single invoice lessens the load on the organization's Finance or Accounting team. This, in turn, frees up resources throughout the organization, allowing for a heightened focus on what truly matters – the well-being of residents.
Collaborating with a strategic partner who employs a 'push notification' style system for food safety withdrawal and recall notifications streamlines this process. Furthermore, this approach seamlessly integrates with supplier relationship management, eliminating the need for excessive calls to trace a recalled item. Speedily identifying, addressing, and resolving food safety issues is paramount in maintaining resident health and satisfaction.
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