Inventory Management

Inventory management overview

Proper inventory management reduces food waste, controls costs, and ensures nothing runs out during service.

Core principles

FIFO — First In, First Out

Always use older stock before newer stock. When receiving a delivery:

1. Move existing stock to the front of the shelf.
2. Place new delivery items behind existing stock.
3. Check date labels — discard anything past expiry.

Par Levels

A par level is the minimum quantity of an item that must always be on hand. When stock reaches or drops below par — it’s time to reorder.

Formula:

Par Level = (Average daily usage × Lead time in days) + Safety stock

Receiving deliveries

When goods arrive:

1. Verify against the order — check quantities and items match the purchase order.
2. Assess quality — check packaging integrity, expiry dates, temperature of refrigerated and frozen items.
3. Weigh bulk items — confirm delivery accuracy.
4. Sign the delivery note — only after verification. Document discrepancies.
5. Store immediately — refrigerated and frozen items must be stored within 15 minutes of receiving.

Stocktake (inventory count)

Run a full stocktake at least once a month. For high-turnover items — weekly.

Stocktake process

1. Count all items in storage, refrigerators, freezers, and workstations.
2. Enter quantities into the inventory system.
3. Compare with expected levels (opening stock + received − used).
4. Investigate and document significant discrepancies.

Waste management

Tracking waste helps identify problems in purchasing, preparation, or service.

Waste type	Cause	Solution
Spoilage	Over-ordering, FIFO not followed	Reduce order quantities, enforce FIFO
Trim waste	Over-portioning, low skill	Staff training, portioning scales
Plate returns	Quality issues, wrong order	Quality control, clear communication

Purchasing

• Review sales data before placing orders — avoid overstocking.
• Negotiate better pricing with suppliers on high-volume items.
• Consolidate orders to reduce delivery frequency.
• Maintain backup suppliers for critical items.