Food Prices About To Go Way Over The Roof?!?!
July 28, 2012 | By wthompson |
The news outlets have been buzzing about the worsening drought in the midwest, which is about to wreck food markets worldwide! And so perhaps now is the perfect time to start thinking about more inventory controls… And you thought you could just float by without this year.
But is inventory management easier said then done? Of course it is if you don’t have a plan. The best operators have systems, procedures and solutions in place to account for inventory losses and opportunities. And those, in a quick nut shell (peanuts have also gone up in prices this year) are:
Clean Up Those Inventory Count Sheets
- Inventory count sheets should be in storage shelf order – make it easy for people to find what they are counting!
- Inventory count sheets should display the product name and unit of measure – easier to track the count, right (duh)
- Use a web-based system to account for the count – excel sheets work too, but remember to refer back to them
Keep Your Inventory Organized
- Try creating product locations (some call this zones) – dry storage, line, prep, frozen, etc.
- The simple stuff like facing each product with the label out will help organization and the counting process
- Assign an owner to each location – bartenders to the liquor cabinet, sure but who “owns” the freezer?
It Takes A Village (or at least another pair of eyes)
- Why not put another pair of eyes on the counting and inventory allocation process?
- Controls miscounts and planning, plus issues with theft
- Managers should log each count and train on count procedures
Count The Actual Unit Of Measure!
- To ensure that product counts reflect these specific units and costs display the unit of measure (and the cost if you can)
- Track on-hand value when possible – may I suggest a system to help out with this (HINT – WTM)
- If the unit of measure changes, log the change and account for it – any unreported change will impact your reporting!
Inventory Price Fluctations
- Whether you use FIFO, LIFO, average price paid or last price paid, be sure to update your costs!
- Track invoices via accounting procedures, or use an invoice tracking tool to evaluate price adjustments
- Don’t miss a beat – if you snooze, you will lose! Price is bound to go up, be aware
Keep Those Books Straight!
- Code your invoices to the proper ledger/P&L
- Use an accounting system, or inventory management solution to keep items in line with budgets and planning
- SHARE THE DATA! Collaborate on issues and frustrations. Don’t burden yourself with all the numbers – share data!
These are just some in a serious of best practices we’ll continue to post as we watch food prices rise… Next up… How WhenToManage helps control theoretical usage – what you sold vs what’s missing from the shelf!