No one wants to run out of inventory. Having to tell customers "sorry, we're out of that," especially during a busy period, can hurt your brand's reputation. At the same time, while it's important to be prepared, you don't want to be over-prepared with too much inventory on-hand. A quality BOH food operations platform will have a "Suggested Order" feature that can help you keep your inventory levels balanced. Here's how...
What Suggested Order Does
"Suggested Order" is a tool featured in your food operations platform that combines back of house functions with financial data to determine and recommended ordering quantities. With this innovative feature, all restaurant team members with access to ordering inventory are presented with system-generated recommendations for ideal vendor order quantities for each item. By following these recommendations, restaurants can ensure they have the optimal quantity of each item on hand at all times.
How are these recommendations calculated? It starts with the current on-hand quantity. That amount is then subtracted from either a static or dynamic par level, which stems from consumption patterns and upcoming sales forecasts. The resulting value is then compared against delivery dates to provide the optimal quantity needed to order to ensure stock will be replenished before it runs out.
A Step Further... Automating the Order Process
Automating the ordering process can help eliminate potential hiccups in the back of the house. A system that not only recommends optimal order quantities, but executes those orders automatically based on set parameters, can serve as a built-in safety measure for busy operators. It's one thing to order the optimal quantity, but it's another to place those orders and have them delivered on time. A system designed to place orders when the operator forgets will ensure stock is replenished in a timely manner.
Saving Money with Suggested Order
While you don't want to run out of inventory, having too much on hand can be even more detrimental to your bottom line. Imagine ordering twice the quantity that you needed of a particular ingredient. If the ingredient has a short shelf-life, some of it will likely go to waste, which hurts your food costs. This happens all the time at restaurants, and it's usually due to orders being placed without using all pertinent data to inform order quantities.
The Bottom Line
Mitigate the risk of carrying too high (or too low) inventory levels. Suggested Order is a critical tool within your inventory management platform that will help save costs and optimize your operation.
PRO TIP: Read the Hickory Tavern case study.
Learn how The Hickory Tavern reduced inventory levels by 25% and achieved a sustained 3% reduction of costs of goods sold.