Hospitality Industry Stocktakes
At Associated Stocktaking, we have dedicated liquor staff that cater to our clients in the hospitality industry. Liquor business have specific needs and requirements – and we are able to cater to all of them. Our procedures are designed to ensure a high level of accuracy in all stocktaking processes. Our liquor stocktaking staff are led by experienced managers who have extensive knowledge regarding variance reports and Point of Sale systems. All of this ensures that accurate results are delivered regardless of the nature of business or venue. The owners or managers of the business are able to keep tabs on stock labels in order to avoid shrinkage.
What Is Shrinkage?
Shrinkage is basically the difference between actual and recorded inventory. Stock may ‘disappear’ due to various reasons such as evaporation, over-pouring, short deliveries, damage, theft and other related reasons. In the hospitality industry, statistics show that lack of proper stocktaking systems can lead to inventory losses of between 10% to 20%. This figures are significantly lower in retail businesses. Other statistics show that nearly 50% of shrinkage is linked to theft while nearly 80% is linked to business employees.
Have you set up necessary systems and check to keep tabs on stock numbers? Many businesses already have procedures for stocktaking, checking deliveries and checking data input accuracy etc. However, a majority of business are still unable to carry out accurate stocktakes that can generate useful variance reports needed to identify missing stock. Accurate information is very crucial if any substantial investigations are to be done. Currently, many businesses rely on Point of Sale systems to conduct their operations. The accuracy of the information stored in the Point of Sale stock file is very important.
Dealing with all these areas is no easy task. This is why you need to make use of both internal and external stocktaking resources.
Are you having doubts about the accuracy of your internal stocktaking procedures? Would getting a second and independent check on your inventory put you at ease?
Our services commonly begin by a baseline stock count that matches the numbers being reported by the Point of Sale system. Next, we do another stocktake that helps us to come up with a variance report. This report shows how good or bad the business’s internal stocktaking processes are doing. At this stage, we have already identified all the stock inaccuracies present in your business. We now have an accurate stock count figure and it is up to you to decide if you need any extra help with stocktaking. (We can also do a 3rd stocktake depending on the extent of stock inaccuracies identified in the first and second stocktake).
Accurate and proper stocktaking cannot be done overnight. Industry professionals’ estimates put shrinkage numbers in the tens of thousands every year. Your business could be losing a lot of stock and exposing itself to huge losses. Accurate stocktakes and tight administrative procedures can help you identify missing inventory early enough so that proper investigations can be done to determine where exactly that bottle of Johnnie Walker Black went. Sometimes, incorrect barcode scanning, forgotten transfers or missed invoices may be the reason for the missing inventory. For the stock that is unaccounted for, you must establish whether they were invoiced and not delivered; or maybe it was just not paid for.
Good internal stocktaking procedures combined with accurate stocktakes can significantly reduce shrinkage figures. Some of our clients have very low shrinkage figures that are typically less than 2%.
You can talk to us about any issues stocktaking issues your business may be having. We would be more than happy to answer all your queries and also provide our professional services where need be.