Inventory Software

                             This article was written for the October issue of Ontario Restaurant News.
 

               Using Inventory software to Maximize profitability

                        Specialty food service inventory programs offer many benefits and ways of
                        saving money. Accounting software often needs to be programmed or scripted
                        to produce sophisticated reports. Spreadsheets need to be modified using a
                        macro language. Neither is easy to do or as effective as a true food service
                        inventory program.

                        What good Inventory software should offers

                        A good inventory program will let you deal with product names and not with
                       codes like YP-568. When an inventory item becomes just a number it becomes
                       hard to deal with, we all are more used to names like tomatoes or beef
                       tenderloin. For an Inventory software to be effective it needs more then fields to
                       enter names and a purchase prices. Each item also has a room or location where
                       it is stored and that needs to be reflected by the software.

                        Inventory items need to have a way to be traced back to an invoice and vendor.
                        Having a purchase history by product can be a super tool to negotiate better
                        prices from suppliers. Taking physical count usually requires one to count cases
                        as well as loose cans and bottles, this often leads to arithmetic errors. Often we
                        work harder then need be, an intelligently designed inventory package will allow
                        you to count and enter counts by case, bottle or can.

                        The same applies for items like flours, produce, seafood and many other bulk
                        items. It should also be able to print out count sheets by location, this breaks the
                        process of taking physical inventory into more manageable pieces. It also helps
                        to ensure that all items get counted, many items might be located in more then
                        one location. When count sheets can be printed out by location then it must also
                        offer a method of entering the physical count in the same sequence. This
                        simplifies and speeds up the process of calculating the extensions.

                        Utilizing the many reports

                        Reports produced by inventory programs must be utilized properly to gain
                        maximum benefit and savings. Reduction in food cost and improved cash flow
                        are easily achievable when these reports are used correctly.

                        A purchase report by vendor can be used to negotiate better contracts. Purchase
                        reports by item can be used to fine tune purchasing quantities. Variance reports
                        help pinpoint items or a group of items that have an abnormally high usage.
                        Re-order reports can be used to assist in purchasing the right quantity of goods.
                        The right system will help to increase cash flow and gives managers more
                        control over food cost.

                        Written by Marcel Schoch
                        Cpyright 1996
 
 

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