Hospitality Industry Stocktakes:
Associated Stocktaking has a dedicated experienced liquor team which specialises in the hospitality industry. Liquor venues have specific requirements – and we can deliver on all fronts. Our stocktaking processes ensure a level of accuracy unparalleled in the industry. Our liquor stocktake managers bring working knowledge of all industry standard Point of Sale systems, and expertise dealing with barcoding issues, product recipes, and variance reports. The result is an ability to deliver results whatever issues a particular venue may have, allowing the venues management to keep on top of their stock levels and identify ‘shrinkage’.
What is shrinkage?
Shrinkage is the difference between recorded and actual inventory. Its disappearance may be due to theft, damage, short deliveries, over pouring measures, evaporation, or similar issues. Statistics in the hospitality industry indicate where there is no system of stock control this figure can run between 10% and 20%. This is many times the average in retail businesses and statistics in Australia suggest that almost 50% of stock shrinkage is down to theft, of which almost 80% is down to the venues staff.
Do you have systems in place to keep on top of your stock? Many venues have some level of internal process to perform stocktakes, check deliveries, accurately input data etc. However, many venues despite their best attempts to keep robust controls in place, are simply not able to manage their stock accurately enough to be able to perform meaningful variance checks and identify the stock that is missing and investigate with any degree of confidence. That is because in the age where we rely on our Point of Sale system to manage our processes, the quality of data in the stock file has never been more critical.
Managing all of this is a mammoth task, and requires internal and often external resources.
Are you happy with the internal stock control systems? Is it worth an independent check to ensure they are working as they should?
Our expertise lies in forming an accurate baseline stock count that is accurately represented on the Point of Sale system. Then from there we recommend we perform a follow up stocktake to then perform the first independent variance check. This variance check is a true measure of how well the venues processes are performing. At that point you have ironed out the vast majority of inaccuracies in your stock file, and have an accurate quantity on hand. You can decide whether it is necessary for any further help from us. (A third stocktake completes the job, however it depends on how serious the issues are that we encountered on the first to as to whether a third is required, and that is down to your judgement).
Good stock management does not happen overnight, but what are the alternatives? Industry experts’ estimates of shrinkage could put the figure easily into tens of thousands per year. Simply not looking at the stock in detail exposes the business to huge potential losses. Ensuring tight administrative processes and having regular accurate stocktakes which identify the missing stock enable the management to further investigate – where is that case of 1lt Johnnie Walker Black? Then missed invoices, transfers that were forgotten, barcodes scanning incorrectly etc. etc. hopefully account for most of the missing stock. Stock that s not accounted for.. were they invoiced and not delivered? Or did they just walk out the door?
When accurate stocktakes are coupled with good internal processes venues can genuinely reduce their shrinkage to minimal amounts. Our tightest venues run at less than 2% shrinkage!
If you wish to discuss any issues your venue may have regarding stocktakes or in the integrity of the data in your stock file we would be delighted to answer your questions and offer our services if they can be part of the solution.
Since Associated Stocktaking started servicing our venue, we have fixed all the non-scanning barcodes and products which scanned incorrectly, and we have accurate stock on hand figures! Now we have meaningful variance reports and have been able to reduce our stock levels significantly. Associated Stocktaking have had a massive positive impact on our business since they replaced the previous stocktaking company! The difference is incredible
The Whale and Ale.