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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:

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

As a small business owner, you have to perform multiple roles. From managing day-to-day operations to capitalising on marketing opportunities, the success of your venture hinges on the multifaceted responsibilities you take on every day. However, one of the most challenging and time-consuming jobs that needs your attention is stocktaking.

For a small business, catering to demand while maximising turnover can be difficult. The lack of dedicated staff makes it even more laborious. But fret not, there is light at the end of the tunnel.

By starting with the basics, utlising business tools, and strategic planning, you can conduct a successful stocktake by yourself. Employ these tips to make sure you are adequately stocked to meet demand without wasting money on excess inventory.

Stocktaking is essential to every company but challenging for a small business due to limited resources. Whether you run a cafe, a retail store, or any other kind of establishment, keeping up with your stocks is absolutely crucial to curtail unnecessary losses and improve profitability. Here are a few things you can do to make stocktakes  efficient.

Stocktaking: Small Business Tips

• Maintain Accurate Records

This may be obvious, but maintaining accurate records lays the foundation for stocktaking. Having up-to-date records will help you make informed decisions to prevent overstocking or understocking while keeping stocks that are in demand. To track stock levels with accuracy, invest in the right software that accounts for purchase orders, sales orders, stock transfers, receipts, and more.

• Count Stocks Regularly

Regular inventory counts will keep you informed regarding the stocks you have at any given time. Set a schedule for the stocktake, such as monthly or quarterly, and document results thoroughly. To keep a closer eye on your stocks and prevent discrepancies from growing into larger issues, you can also perform weekly or monthly stocktakes.

• Track Shelf Life

Expired items can diminish profits, which small businesses cannot afford. Keep track of the shelf life and expiration date of your stocks, especially if you are selling perishable items like food and beverages. Creating a system of reminders can also help you check expiry and restock accordingly.

• Leverage Technology

As a small business, technology is your best friend. There are many point-of-sale systems that can automate inventory counting after a sale. Automation will help you maintain accurate stock levels without time-consuming manual processes. Additionally, inventory management technology gives precious time to small business owners to focus on core areas while automating inventory control.

• Develop a Restocking Process

Having adequate stocks in hand is a major challenge for every business. Too many stocks can consume purchasing funds excessively and increase storage costs. On the other hand, if stock levels are low, sales and customer experience could take a hit. Therefore, creating a reliable restocking system is crucial. Create a system accounting for minimum order requirements and vendor lead times to have adequate stocks catering to the demand. Another wise practice is to create a method for tracking consumption so you can take the guesswork out of the equation and rely on hard data.

• Streamline Inventory Orders

Set up an automated ordering system that triggers an order to the supplier when stocks reach a certain level. Streamlining the ordering process with an automated system eliminates the need to manually check and enter data, saving you a tremendous amount of time.

• Forecast Demand

Predicting future demand for your goods is key to planning strategically in advance. Use forecasting tools to prevent overstocking or stockouts and handle inventory properly.

Conclusion

Stocktaking can be tricky, especially for low-volume operators. But, the right tools and strategies can enable you to run operations smoothly without incurring losses. If possible, you can also consider buying in bulk and rotating stocks before expiry. Utilise technologies like barcode scanners and automated inventory management systems for real-time stock counts and order tracking. Lastly, keep an eye out for slow-moving stocks to prevent spillage. These tips can help small businesses take control of their inventory without breaking the bank.

Or, you can let go of the hassle and focus on improving core competencies while entrusting stocktaking to the experts. At Hospitality Partners, we ensure accurate and reliable inventory counts so you can worry less about stocktaking and focus on growing your business. With our seasoned stocktakers, you can enjoy the peace of mind of knowing that your inventory is handled by the experts.

Technology has brought about sweeping changes in the hospitality industry, it has redefined how operators manage customer experience and operations. From automated guest services to real-time inventory tracking, the digital era presents several growth opportunities for hospitality businesses.

To stay ahead, hospitality leaders need to go beyond adopting new technologies, they need to completely rethink their business model to enhance customer experience and streamline operations.

In this article, we will provide a deeper insight into the key drivers and the profound impact of technology on hospitality consulting and stocktaking.

 

The Key Drivers of Technological Growth in Hospitality 

The Irish hospitality industry is competitive. The need to enhance customer experience, operational efficiency, automated inventory management, and gain a competitive edge led to the mass acceptance of technology for hospitality players. Harnessing digital innovations such as AI for personalised guest services, analytics for market data, and software solutions for automated inventory tracking became established practices. Those who couldn’t keep up were left behind. Furthermore, the post-pandemic focus on hygiene & safety led to contactless payments, check-in & check-outs, and other services.

As the industry shifts towards an integrated and innovative approach, hospitality leaders should also switch to a tech-driven approach to meet guest expectations and manage resources better.

 

The Role of Technology in Hospitality Consulting

Technology plays a crucial role in aiding hospitality consultants to improve operations, customer service, and resource management. It has also helped them create effective strategies to reduce costs and shift towards sustainable practices.

Here’s how the digital era has simplified the job of hospitality consultants:

• Improved Operational Efficiency

Consultants can analyse the operations of a hospitality business, identify discrepancies, and address issues strategically to streamline processes with the help of technology. They can get data faster and implement changes to reduce costs and enhance productivity.

• Personalised Solutions

Technology helps consultants deliver personalised solutions to address specific challenges. They can tailor their strategies to meet the diverse needs of their clients and mitigate potential risks.

• Data-driven Decision-making

With real-time data, consultants can gain deep insights into management processes, customer demand, and market trends. Fueled by current and historical trends, they can make informed decisions and drive better results.

• Seamless Communication & Collaboration

Collaborative tools like cloud-based project management software can promote better communication & teamwork amongst internal departments, leaders, and business stakeholders.

• Identifying Industry Trends

Consultants can rely on technology to stay ahead of industry trends and practices and provide up-to-date services to hospitality clients.

• Remote Working Flexibility

Finally, technology has enabled consultants to work remotely and offer professional services to multiple clients simultaneously. This flexibility helps consultants to save time and resources and work as per convenience.

 

The Role of Technology in Improving Stocktaking

Traditionally, stocktaking was a manual, laborious process of counting stocks and comparing them against records. It required excessive paperwork and time. However, the advent of technology has automated inventory management and data recording, leading to more efficient stocktakes. These modern solutions help stocktakers manage inventory accurately and prevent wastage or stockouts. Here’s how technology has reshaped stocktaking:

• Automation

Inventory management software, barcode scanners, and other kinds of technology have streamlined stocktaking and inventory management, reducing time and minimising errors during stocktakes.

• Real-time Inventory Data

Stocktakers can have a real-time peak inside inventory data, the stocks at hand, lost stocks, and other key information that helps them make informed decisions to curtail losses.

• Optimised Security

By identifying theft and stock damage, stocktakers can recommend security measures that secure business resources.

• Personalised Reporting

Automation technology reduces manual dependency for data-entry and report generation. Stocktakers can also generate customised reports tailored to their specific needs and make informed decisions.

• Predictive Analysis

Technology can predict seasonal and long-term demands, enabling stocktakers to optimise inventory purchasing, management, and pricing while reducing stockouts or overstocking.

 

Conclusion

As technology seeps further into the hospitality industry, it is evidently not a transient trend but a perennial shift towards innovation and efficiency. However, the resistance to change, rising costs of technology, regulatory challenges, and the time and resources required to constantly adapt can be difficult, especially for low-volume hospitality businesses.

Hospitality Partners is a stocktaking and consulting firm renowned for its expertise in helping clients minimise losses and increase profitability. Our dedicated professionals combine data-driven insights and expertise to deliver impactful solutions that improve operations, guest experiences, and the overall efficiency of your business.

Running a hospitality business without a grip on your inventory is like shooting in the dark. Regular stocktakesminimise the risk of stockouts, overstocking, and theft, leading to accurate pricing, sales, and happy customers. Without proper inventory management, your records will be inconsistent or outdated, potentially disrupting operations and profits.

Stocktaking helps operators identify fast and slow-moving stocks, which can be used to make informed decisions regarding stock purchase and lowering storage costs.

After all, you don’t want to miss sales opportunities due to inaccurate records, which leads you to believe you have insufficient stocks. Significant or recurring discrepancies can escalate into larger issues, affecting cash flow and even damaging reputation.

Proper stocktaking gives a clear view of your inventory, helping in purchasing, pricing, and sales decisions. In this comprehensive guide, we will cover everything from the benefits to the best practices of stocktaking. With these strategies, you can take control of your stocks, streamline operations, reduce losses, and set up your business for growth.

What is Stocktaking?

Stocktaking is the process of physically counting inventory. It’s a critical part of inventory management which matches inventory records with actual stock levels. Regular stocktakes can help businesses identify mismatches, such as missing or damaged stocks, which helps them maintain accurate inventory levels. Stocktaking also reduces overstocking and understocking, thereby improving cash flow and customer satisfaction.

Many hospitality operators find stocktaking to be a time-consuming affair. However, it is essential for every business. Periodically counting stocks can optimise inventory levels, maximise sale opportunities, and reduce wastage. Put together, all of this can boost long-term profitability and business growth.

Why is Stocktaking Important?

Stocktaking is important because it ensures that physical stocks match inventory records. Businesses that conduct regular stocktakes have a firm grip over inventory and are better placed to identify discrepancies such as damaged items, missing stocks, theft, wastage, etc. This not only helps them address issues promptly but also prevents costly mistakes like stockouts and overstocking.

Professional stocktakers compile reports at the end of each stocktake, which supports informed decision-making. With a clear picture of inventory, operators can strategically plan purchasing, production, and sales policies. It helps businesses comply with audit regulations as well.

In a nutshell, stocktaking is essential to improve inventory control and boost profits.

6 Ways Stocktaking Can Improve Business Efficiency

Regular stocktaking helps hospitality operators manage inventory accurately. With real-time insights into stock levels, they can improve overall business efficiency. Here’s how:

1. Precise Inventory Records

By comparing actual stock levels with inventory records, stocktaking can help reduce discrepancies like missing, damaged, or expired goods, maintain stock reliability, and aid in demand forecasting.

2. Informed Decision-making

Accurate stock data helps businesses make better decisions regarding purchasing, pricing, and selling items. Stocktaking ensures that your business has adequate stocks at any given time to cater to demand efficiently.

3. Minimise Losses

Stocktaking prevents theft, shrinkage, and damage by identifying issues early on and supportive mitigative action to minimise financial losses.

4. Optimised Inventory Management

Regular stocktakes enable businesses to take control of their inventory, thereby reducing stockouts and over-ordering stocks, which in turn optimises cash flow.

5. Greater Customer Satisfaction

With accurate stock records, businesses can ensure that products are available when customers need them, leading to enhanced customer experience and satisfaction.

6. Improved Supply Chain Management

By knowing current stock levels and predictive demand, hospitality operators can streamline their supply chain to reduce wastage and utilise stocks properly in their life cycle.

Best Practices to Improve Stocktaking

When it comes to stocktaking, there is no ‘one size fits all’ approach. The type and frequency of stocktaking depend on factors like the size and volume of the business, type of inventory, and more. However, there are common practices that can help you improve your stocktaking and ensure accurate data. Below are some tips to follow for stocktaking:

• Keep the Stockroom Organised

A cluttered warehouse can cause confusion and delays during stocktaking. Alternatively, a well-managed stockroom ensures that stocks are correctly labeled and stored in designated areas. Identifying a mismatch or missing items is also easier in a neat and organised warehouse.

• Involve your Staff

Engage your team in the stocktake, especially those who deal with inventory on a daily basis. Their input and involvement can simplify the process. Working with a professional stocktaker, they can also learn the best practices for stock control. Once the count is over, ask for their feedback and implement measures that can optimise inventory management.

• Use Inventory Management Systems

Manually counting stocks can be laborious, not to mention the increased risk of human errors, especially in high-volume establishments. Incorporating inventory management technology will capture and tag stocks instantly, letting you record large chunks of data without errors.

However, remember that switching to technology should be combined with manual counting. That is because an inventory management system may not be able to pinpoint discrepancies that a professional stocktaker would. Nonetheless, it’s a swift and accurate way of streamlining inventory management.

• Create a Focused Environment

Eliminate distractions while stocktaking. Ask your staff to avoid phone calls during the stocktake, as it may lead to miscounts or overlooked details. Creating a focused environment reduces the chance of errors and enables your team to complete the stocktake faster.

Take your Stocktaking to the Next Level

Stocktaking is vital to every food and beverage business. It helps them maintain accurate inventory records and make informed decisions regarding stock purchasing, pricing, and sales. By choosing the right stocktaking company like Hospitality Partners, operators can streamline inventory management, eliminate errors, and improve profitability.

With proper planning and professional guidance, your business can enjoy several benefits, like reduced discrepancies, improved business processes, and enhanced customer satisfaction. Ultimately, regular stocktakes will save your establishment time and resources while maximising profitability in the long haul.

With regular, professional stocktakes, Hospitality Partners can enhance inventory accuracy and help your business cut down losses.

Take stocktaking to another level with Hospitality Partners. Contact us to schedule a stocktake for your hospitality business.