Inventory management: how to optimize and reduce costs in your business

One of the main challenges for those dealing with collective feeding is the stock management. Therefore, this is a task that requires constant attention and detailed planning, since the key is to balance cost control without compromising product availability.

If you are looking for more efficient and intelligent stock management, this content will provide you with valuable information and strategies to optimize your processes and reduce costs.

What is stock management in catering companies?

Stock management in mass catering is a process that involves the planning, control and organization of food products, ingredients and supplies.

Thus, the efficient management stock is essential to ensure that items are available, in the right quantity, at the right time and at the most efficient cost.

In other words, knowing the quantities of each product, when to buy again and how to avoid losses.

What is stock?

Stock is the quantity of goods stored, either in the warehouse or on the sales floor.

It therefore includes raw materials, products in the manufacturing process, finished items ready for sale or even products in transit.

Strategies to reduce costs and improve efficiency

A well-executed stock inventory brings several benefits, such as:

• Optimize time and organize your merchandise;
• Improves financial performance;
• Controls the acquisition of inputs with low stock outflow;
• Improves sales prospects;
• It contributes to the projection of new orders.

Furthermore, in a scenario with well-structured stock management, it is possible to better qualifying suppliers, ensuring that they meet quality, service and price requirements.

How to carry out a stock inventory:

• Planning - First of all, before starting the inventory, set a suitable date and time, minimizing interruptions to operations. In the meantime, prepare the necessary tools and forms and hire inventory management software to make the process easier.
• Physical count - Afterwards, the team responsible must carry out a physical count of all the items in stock.
• Data recording - after the physical count, all data must be recorded in the inventory, including product name, quantity, unit of measure, unit cost and total value.
• Analysis and reconciliation - After that, carry out an analysis to identify possible discrepancies between the physical inventory and the accounting records so that you can detect errors, losses, deviations and other issues that need to be corrected.
• Stock valuation - Once the data has been recorded, it's time to calculate the total value of the stock, multiplying the quantity of each product by its unit cost so that you have better financial control and cost analysis.
• Corrective actions - then, based on the discrepancies identified, take corrective action, such as investigating losses, adjusting records, reviewing storage practices, and even ordering and purchasing processes.
• Continuous monitoring - Finally, carry out stock inventories on a regular basis to keep an up-to-date track of products, as this helps to ensure accurate records and identify problems before they become critical.

How to manage stock:

Once the inventory has been completed, it is essential to maintain active stock management to ensure that the efforts made bring continuous results.

To do this, we have prepared a detailed step-by-step guide that will help you implement this management efficiently and strategically.

• Demand forecasting: start by estimating demand based on the history of diners, seasonal patterns, most consumed products, per capita value targets per dish and contractual data. This forecast helps to calculate the amount of food and ingredients needed, thus avoiding both shortages and waste, as well as aligning stock with real needs.
• Orders and purchases: With the demand forecast in hand, organize purchase orders to replenish stock efficiently. Prioritize reliable suppliers and negotiate advantageous prices, terms and delivery conditions.
• Receiving and inspection: when you receive the products, immediately check the quality and quantity of the items delivered. Check expiry dates, packaging integrity, price conformity and whether invoices correspond to the purchase order.
• Stock registration: record each item received in detail using computerized stock management systems. These systems allow you to monitor quantities, identify possible deviations, such as losses or thefts, and simplify the planning of future purchases.
• Proper storage: organize food and ingredients in such a way that their quality is preserved. Control temperatures, categorize items and use techniques such as the FIFO (First In, First Out) method to ensure that the oldest products are used before the newest.
• Waste monitoring: check for underused food and implement measures to reduce losses.
• Performance Analysis and Inventory: regularly analyze data on costs, sales, waste and consumption trends. This analysis makes it possible to identify improvements, optimize processes and reduce costs, guaranteeing efficient and sustainable stock management.

The importance of stock control to avoid losses

Inventory management is fundamental to controlling costs and avoiding waste. Excess stock of ingredients or food products can lead to financial losses, while insufficient stock can result in production delays and even loss of customers.

In this context, having suitable tools is essential to ensure efficient and accurate stock control.

O TecFood has emerged as a complete solution, integrating inventory management with planning and operations, optimizing processes and eliminating waste.

See the success story of our client Cozzi: Cozzi, a reference in industrial meals, adopted Teknisa to improve management, reduce waste and support sustainable growth. “I recommend it as the best solution on the market.” - Pedro Suassuna, director of Cozzi.

With the right support, you can avoid the most common catering mistakes. We'll show you how!

The 10 most common mistakes in stock management and how to avoid them

If you've got as far as this article and believe that your catering company's inventory management process can be improved, it is likely that you are committing some common mistakes in managing this task.

Identifying these errors is the first step towards optimizing the operation and achieving better results.

Continue reading to find out which are the 10 most common mistakes and how to avoid them to ensure the success of your business!

1. Not having aligned the inventory process with the team

Efficient stock management starts with team training and alignment, because everyone needs to understand the importance of this task in order to succeed.

Therefore, train your team to understand how stock management impacts on your company's results. It is also important to explain how reducing waste and making the most of inputs contributes directly to saving resources and making the business more operationally efficient.

It is important that the team is integrated into the process. In this way, clarify the standards involved, how to identify what might be missing and how to avoid excesses. By aligning your team and setting clear standards, you create a solid foundation for efficient stock management.

In addition, carry out specific and continuous training. One example is training in the use of stock management software, proper storage techniques, shelf life control and safe food handling.

Finally, it is essential that the manager recognize and value the team's efforts. Creating a collaborative environment and encouraging employee engagement in the inventory management process ensures more efficient and committed control.

2. Not taking inventory on a daily basis

A inventory frequency depends on factors such as stock size, sales volume, item turnover, seasonality and the type of product stored. However, in order to ensure efficient stock management, companies that work with collective meals must carry out the following daily inventory.

This way, managers and kitchen teams have an up-to-date view of the products available and can order replenishments more accurately.

What's more, seasonal factors also influence the frequency of inventory. For example, during periods of high demand, such as holidays or special events, increasing the frequency of inventory helps to ensure that there is enough stock to meet requirements.

Carry out inventory on a regular basis is essential. As we've seen, ignoring or taking inventory sporadically compromises stock management and the operational efficiency of the business.

3. Not correctly recording goods received into stock

Many owners or managers still make the mistake of not checking the receipt of goods from precise form. When entries are not recorded correctly, a number of problems arise that negatively affect stock management.

This is because recording goods receipts accurately guarantees visibility of available stock. However, without this control, shortages can occur, causing delays in service and dissatisfaction among diners.

Also, with proper recording of entries, inventory becomes easier and more accurate, The correct information helps to avoid inaccuracies in stock control, guaranteeing important data such as product expiry dates.

Therefore, efficient stock management depends directly on the accuracy of incoming records.

Finally, recording entries correctly allows for better cost management for food service. For example, by checking each delivery, the risk of paying for goods not received or amounts different from those agreed with the supplier is reduced, preventing financial losses.

4. Not classifying the products purchased

Correctly classify the products purchased saves time employees, simplifies audits stock and facilitates spot checks, allowing the team to concentrate on other essential tasks.

This activity helps the inventory management and purchasing team to identify which items need to be purchased more frequently and which are less in demand. As a result, purchasing planning becomes more efficient, avoiding both stock-outs and over-purchases.

In addition, classifying products makes it easier to organize the company's stock. industrial kitchen, indicating where to store each item and how to organize them. This way, the kitchen and management team can quickly find the items they need, saving time and effort.

Finally, with the classification of the products, the management and kitchen team will have a a clearer view of what is available in stock. As a result, decisions related to menu planning, promotions and even specific offers will be more agile and aligned with consumer needs.

5. Not having adequate space to store purchases

Having adequate storage space is essential for efficient stock management, since the lack of a well-structured place compromises product quality and has a direct impact on kitchen operations.

Adequate storage space helps maintaining food quality, It allows products to be kept at the ideal temperature, away from excessive light and humidity, and according to their specific needs.

And with adequate storage space, stock organization becomes more efficient. This makes it easier for staff to locate products, reducing the time spent looking for items and allowing the kitchen and management team to focus on other essential tasks.

Finally, it is important to emphasize that proper storage also ensures that products are healthy. It is essential that the stock is organized in such a way as to avoid cross-contamination of foods, especially those that are more allergenic.

6. Not checking the expiry date of the products in your stock

Checking the shelf life of products is essential for efficient stock management. Stock analysis must take into account the turnover of each input and due date of each item. For example, meats and dairy products need to be consumed more quickly than flour and grains.

Strict shelf life control is crucial to prevent the food waste. This not only reduces costs, but also contributes to more sustainable practices, in line with the principles of ESG (Environmental, Social, and Governance).

Adopting strategies that minimize waste reflects a commitment to the environment, by reducing the generation of waste and strengthens the business image as a responsible company committed to sustainability. Therefore, reducing waste should be one of the main objectives in stock management.

At this point, we once again draw attention to the FIFO method (First In, First Out), which prioritizes the use of older products before newer ones, is an essential practice for efficient stock management. This system helps prevent food waste by ensuring that items with a shorter shelf life are used first.

In addition, it is essential to establish clear procedures for checking and recording dates. Therefore, define daily or weekly inspection routines, depending on the turnover and types of products, and ensure that these inspections are carried out rigorously.

7. Disregard technical data sheets

A food factsheet is an essential tool for stock management and cost control in catering companies. It provides the necessary quantities of each ingredient, allowing the manager to organize stock efficiently, avoiding excesses or shortages of inputs during the preparation of dishes.

The use of food factsheets offers several benefits for stock control and cost reduction. These include:

• Precise control over ingredients: With the technical sheets, the team knows exactly what each dish requires, avoiding waste and helping to strictly control costs.
• Consistency in the preparation of dishes: By following the technical sheets, the team ensures that each dish is prepared in the same way, using the same quantities of ingredients and in the same preparation time.
• Training kitchen staff: The technical sheet also functions as an essential training tool. It helps employees to maintain the desired standard in the preparation of dishes, regardless of who is in the kitchen, promoting uniformity and efficiency.

8. Not taking care of stock cleaning

Stock cleaning plays a crucial role in the management of catering companies.

Maintaining storage space organized and clean not only ensures the quality of the products, but also guarantees the food safety and compliance with health regulations.

In addition, regular cleaning is essential to prevent contamination that could compromise the integrity of the food, preventing it from becoming unfit for consumption.

To keep stock clean, define clear sanitization procedures, including:

• Regular cleaning of shelves and containers;
• Immediate removal of expired or spoiled food;
• Keeping accurate records of the products stored and their respective expiration dates.

Storage managers should establish written procedures, with a detailed cleaning schedule and a checklist to ensure that all areas are properly cleaned and disinfected.

In Brazil, the National Health Surveillance Agency (ANVISA) provides specific guidance on cleaning and disinfecting surfaces, including the recommended frequency and suitable chemicals.

9. Not controlling the removal of goods from stock

Just as controlling the entry of goods is essential, monitoring the exit and distribution of these items is also fundamental.

This control ensures that consumption data reflects what is actually served, especially at the end of each month.

In addition, monitoring the output helps identify possible leaks of goods, Such as losses due to lack of use or even thefts of ingredients and inputs.

Without proper control of output, problems arise that directly impact stock management, such as knowing what is available in stock.

This lack of control can lead to shortages overestimation of items, This generates unnecessary costs and makes management difficult.

To avoid these problems, establish clear procedures for output control of goods. Record each checkout immediately after the sale, including information such as date, order number, customer name and quantity sold.

Also, train the team to perform this task consistently and accurate, guaranteeing efficient stock control and minimizing losses.

10. Not using an ideal system for catering stock management

The routine of those who work with mass catering is intense and full of challenges, requiring a careful and strategic management to keep operations running smoothly.

In this scenario, it is common for managers to ask themselves: how can they control stock efficiently, reduce losses and at the same time ensure assertive management that optimizes available resources?

With the high volume of data generated daily in the inventory management process, such as information on product entries, exits, shelf life and movement, the task of keeping track of everything accurately becomes even more complex.

That's why, investing in technology is no longer an option, it has become essential. An adequate system not only organizes this information, but also allows detailed analysis through reports and informed decisions that reflect positively on business results.

Read our E-book on 4 strategies to avoid losses in your stock!

Why choose Teknisa's inventory management system?

Teknisa's stock management system is a complete tool that guarantees efficiency, savings and total control of operations. Ideal for companies looking to optimize processes and make more assertive decisions.

Advantages of the Teknisa stock management system:

• Efficient control: monitors ingredients, avoiding shortages and excesses.
• Reducing wasteThe company: adjusts purchases to demand and manages the shelf life of products.
• Precise financial planning: allows strict cost control and detailed forecasts.
• Supplier management: keeps complete records for more competitive negotiations.
• Integration with ERP: centralizes data and processes in a single system.
• Strategic decisions: provides support with detailed reports and real-time analysis.
• Accurate financial reports: guarantees reliable balance sheets and income statements that reflect real profits.
• Cost control: optimizes stock, reducing storage, transport and labor costs.
• Improved cash flow: enables high inventory turnover, quickly transforming products into revenue, strengthening the company's liquidity and financial health.

Technology is an essential ally for any company looking to automate processes, boost team performance and differentiate itself from the competition

Watch the success story of our client Mc Dallas: with the adoption of Teknisa systems, they have achieved more effective stock control and other benefits that have had a positive impact on the operation.

Invest in technology and transform your business management!

Investing in inventory management software allows managers to efficiently control their raw materials and end products, as well as improving strategic communication with suppliers. With this, the results become positive in both the short and long term.

Conclusion: there is a solution for every inventory management challenge!

Technology solutions, such as Teknisa's stock management software, are essential for organizing internal processes, integrating sectors such as planning, purchasing, finance and stock, and improving the quality of service.

Technology facilitates management by making processes more precise and agile, allowing managers to focus on the strategic decisions that drive growth.

Widely adopted by catering companies, Teknisa's software stands out as the best choice for optimizing stock management, promoting greater operational efficiency and cost control in your business.

We hope that these tips and insights will inspire improvements in your company's inventory management, contributing to the success and sustainable growth of your business!