Inventory management is a necessity in every business. However, more and more restaurants are realizing that it can be the difference between success and failure. This is the process of controlling expenses and waste through effectual use of on-hand product. Combine this with a reliable forecasting model and restaurants can realize dramatic reductions in their monthly spending.
Every business is faced with the unfortunate reality that employees will steal from their employer. And an effectual inventory management system combined with secure storage and lock-up procedures will result in far less loss due to employee theft.
There are primarily three types of inventory management systems in the restaurant industry: Manual or Limited Integration, Mixed P.O.S. or Partial Integration and Fully-Integrated.
Manual or Limited Integration
This type of inventory management refers to the process of physically counting each item every week to get restaurant expenses. It is more suited to smaller, independently-owned operators who purchase fewer items and maintain simpler accounting records.
When all counting is completed, then data can then be transferred to the restaurant's accounting system. The inventory is complete if there are no mistakes. But the entire inventory process must start again to find the mistakes in case there are errors.
Mixed Point of Sale (POS) or partial integration, combines the restaurant’s POS system with manual inventory procedures. As for point of sale, it refers to the computer system used to order food and drinks as well as settling all checks.
Thus, each time an item is ordered through the POS it is removed from the current inventory. But when the items are counted during inventory, the on-hand stock should match the inventory listed by the POS. And if there are discrepancies between the two lists, another physical count of the inventory must begin.
However, this is more effectual method than the limited system, and when combined with strong loss-prevention procedures can result in large cost reductions per month.
This kind of inventory management system fulfills three different elements into its system. Fully-Integrated management system combines the restaurant POS system with an Ordering/Shipping system as well as an electronic physical inventory system. Moreover, this is the most sophisticated and accurate of the three systems and results in the least amount of monthly and overall loss of product and profits.
But some restaurant suppliers will provide their more important restaurants with an online ordering system. It is integrated with the restaurant's POS and can accurately predict what is in on-hand inventory, as well as forecasting the size of the next supply order. All data is automatically sent to both the supplier and the restaurant.
With the help of this type of system you will save your money and help you run a more streamlined and efficient restaurant business.