How to Prevent Stock Loss?
As a food & beverage business, competitive edge doesn’t always mean spending on flashy ads or rolling out new, in-demand products that your competitors thrive on. Often, something as simple (yet not so simple) as proper inventory management can do the trick. Optimising the minor details of your operations can significantly boost stock control, order management, and inventory utilisation.
Whether you are a restaurant, cafe, or a bar, the success of your establishment may very well be determined by how you handle inventory. In this article, we have listed the best inventory management practices in the industry that can curtail stock wastage, downtime, and improve short-term and long-term profitability of your business.
Best Practices to Prevent Stock Loss
The future of hospitality is being shaped by technology, but not even the best technology can save a business and make up for poor operational efficiency. Here are some ways to minimise food and beverage losses:
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Label &Organise Inventory
Properly organising and labeling inventory reduces waste time and helps workers quickly retrieve all items. As a restaurant, you should keep similar products close to each other and clearly label them with names, dates, and expiry periods.
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Maintain Low Stocks
The storage space in your outlet must be utilised efficiently, down to every inch. Maintain low stock volume without compromising the ability to meet demand to ensure you are not wasting space by overstocking. Having excess stocks increases the risk of wastage, as you may have to discard some items due to expiration. Keeping stocks low can help you avoid this scenario.
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Use a Barcode Scanner
Barcode scanners can instantly verify and retrieve products, updating inventory numbers in real-time. They reduce the intake time for new stocks and identify damaged or stolen goods immediately.
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Stocktake Regularly
Even if you are using a barcode scanner to track product movement, regularly comparing actual stocks with recorded stocks can expose areas of shrinkage. If you notice any discrepancies, you should investigate further. Instances like improper product handling, theft issues, or pest infestation are easier to identify when you stocktake regularly.
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Follow the FIFO Method
FIFO stands for first in, first out, which is an inventory management method for storage and stock rotation. This method is extremely important for businesses handling perishable goods. Start stocking new items from the back off your shelves and pull items from the front. This practice will ensure your oldest products are utilised first and reach the final user before expiration.
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Accommodate Seasonal Items in Your Inventory Software
Remember, as a restaurant, you are likely to change your menu as per the season. Some foods, especially fresh produce, have seasonal availability. Apart from planning the storage area to accommodate new products and rotating out-of-season items, you should also allow these changes within your inventory tracking software and maintain up-to-date data on actual stocks in-hand.
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Train Staff For Proper Handling
Training staff efficiently to manage stocks in your store and warehouse is critical to minimise losses. They should be trained to use barcode scanners and follow the FIFO method, keeping storage areas clean and accurately labeling items. Finally, proper handling, such as portion and pour controls also plays a part in preventing wastage and improving profitability per product.
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Forecast Demand
One way to keep stock levels low while preventing stockouts is to forecast demand and automate repurchasing. To predict demand, maintain precise inventory counts throughout the seasons, and use real-time data to analyse surging or plunging demand. Assign a value to your stock counts in a way that triggers automatic repurchasing when the numbers reach a low threshold. Whether you are a restaurant or a bar, this system will help you maintain minimum inventory counts and curtail losses.
Need Help With Stocktaking & Inventory Management?
Minimising stock wastage starts with robust inventory control and regular stocktaking. By implementing efficient technology and processes, training your staff, and following recommendations by professional stocktakers, you can reduce shrinkage significantly while improving your bottom line.
Take control of your stocks and business Hospitality Partners. Our professional stocktakers and hospitality consultants can streamline operations, reduce stock wastage, and boost profitability in your business. With significant experience in helping hospitality operators succeed, we offer tailored solutions and expert recommendations in inventory management, pricing strategies, cost control, and staff training.
Gain an edge over competitors by working with Hospitality Partners today.
