Pilferage is the act of stealing small quantities of product. For a restaurant this act repeated over a period of time could be devastating. How many restaurateurs suffer from pilferage without even knowing it? You would be surprised to know that the number is quite large. Pilferage happens because of a lack of inventory control. Taking a proper inventory is a simple process but it must be done thoroughly and routinely.
What is inventory control?
Inventory control consists of controlling information; it's about knowing the status of all the merchandise in your business. This includes the raw material, the semi-finished products, and the finished products, encompassing a series of processes and methods designed for the easy supervision of your stock. Having control of your inventory allows for better planning and operational workflows.
What are the benefits of having a controlled inventory?
Always have the entire menu available.
Save on costs by avoiding emergency purchases.
Controlled stock management.
Avoid pilferage.
Standardized processes.
Improve operational workflow.
Reduce inventory obsolescence.
Reduce waste management.
How do you classify your inventory?
As such, there is no specific technique to do it, everything depends on what works for you and finding an easy way to identify your products. An ABC system is recommended, which allows you to identify the products in your restaurant and assign them a value based on the overall importance to your restaurant. This system is contemplated as follows:
Input A are those inputs that comprise 70% of the total value of your raw material.
Input B are those that make up 20% of the total value of your raw material.
Input C represents the remaining 10%.
Utilizing this classification, we can understand that we should focus on the inputs that represent a greater value to your organization, it does not mean that we neglect the rest, but that 70% of the total value is where there should be greater control since that represents the more expensive inputs.
How to keep track of my inventory correctly?
There are different methods to carry out your inventory control, it all depends on the resources and technology you have available, but the ideal steps are the following:
Carry out a physical inventory on a monthly or bi-monthly basis. This will allow you to manage your available stock and will serve as a basis for classifying your products.
Classify your products according to which way it works best for you.
Register all inputs and outputs. Keep track of your purchases, waste, and sales. Everything must be recorded.
Set review periods, setting specific time will allow you to have adequate control of your merchandise, this can be daily, weekly or monthly. It is recommended that the first times of implementation be carried out weekly until you have adequate control.
Determine maximums and minimums. By setting these purchasing parameters, you can determine what quantity of product is necessary for the operation, how long it will last and the moment you need to make your next order.
Use the technological tools available. There are so many free tools readily available, find them. These tools will allow you to keep track of your inventories in a protected way.
In conclusion, it is advisable to have good inventory control because it allows us to avoid losses, detect mishandling, and control your information, something essential for internal audits (a situation to be discussed in later blogs). Avoid pilferage! If you need advice or help in the handling, classifying, managing your inventory, let us know. Now that you’ve identified the problem, you can work on fixing it. Let us help!