Inventory Control Basics

Inventory Control Basics

A Systematic Guide for Controlling Inventory in Your Restaurant

By Joe Erickson

Inventory management is as critical for restaurants as any business in terms of cost control. Unlike common retailers and manufacturers, however, your challenges include daily turnover of supplies and materials that are high perishable.

If you were just a common retailer, inventory control would be a relatively simple matter. Retailers purchase clothing, jewelry, hardware and other do-dads at wholesale prices, mark them up and sell them for a profit.

For these businesses, monitoring inventory is a matter of recording when the product is received and when it is subsequently sold, something any POS (point-of-sale) or accounting system can manager. If the store purchases 10 baseball caps and three are sold, then the system should show that seven remain in inventory. The seven caps might never sell at their original markup, but they will not “go bad” and can probably be liquidated at cost at some point.

In this article, I summarize the systems and procedures you will want to adopt and master to gain increasing control over your inventory. With this in mind, I categorize these inventory control measures into “basic”, “advanced” and “expert”...

View the entire article in PDF - Inventory Control Basics- Restaurant Startup & Growth Magazine - August 2013

Reprinted with permission of Restaurant Startup & Growth magazine Copyright 2014
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