In a previous blog, we talked about why inventory management is essential for success in foodservice. Now, let’s take look at some key strategies to optimize inventory management.
Whether you’re managing a restaurant chain, or overseeing cafeteria meals in education environments, striking the perfect inventory balance is an ongoing challenge. Overstocking leads to wasted food, expiring products, and unnecessary storage costs. Understocking, on the other hand, results in stockouts, missed sales opportunities, and frustrated customers.
So, how can foodservice operators achieve optimal inventory management? Here are some key strategies:
1. Automated Daily Inventory Tracking
Gone are the days of manual inventory counts comparing multiple spreadsheets side by side. Inventory visibility solutions offer near real-time inventory tracking, allowing supply chain managers to monitor stock levels across all locations with ease. This enables them to identify low inventory items that are at risk of a stockout, and proactively make replenishment orders. A proper solution will even allow alerts to be set up to automatically send an email to the necessary parties based on thresholds you can pre-set.
2. Strategic Planning with Historical Data
Historical distributor inventory data enables operators to evaluate past performance and adjust ordering strategies, preparing for future demand with greater confidence.
3. Implementing Safety Stock Levels
Even the most accurate forecasts can be disrupted by unexpected surges in demand or unforeseen supply chain delays. To mitigate these risks, operators should establish safety stock levels for essential ingredients. This buffer ensures sufficient stock to cover potential shortfalls without excessively overstocking.
4. Employing ABC Analysis
The ABC analysis categorizes inventory items based on their value and consumption rate. This helps prioritize inventory management efforts. A items represent high-value, frequently used products that require close monitoring and tight control. B items are moderately valuable and consumed at a steady pace, warranting regular monitoring. C items are low-value, frequently used products that can be managed with less frequent checks.
To learn more about how ArrowStream can be help you optimize your inventory management, contact us today.
