The value of effective Stock Control Frameworks in Hospitality
Improve Results With an Integrated & Agile Internal Control Framework
As the hospitality industry returns to the new normal, businesses in the sector must ensure that they have a good controls framework in place, and it must be integrated and agile in order to quickly identify potential risks, address areas of vulnerability, and ultimately achieve improved results.
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Stocktaking
Stocktaking is perhaps the largest area of the control framework. Effective stock control impacts everything from customer satisfaction to efficiency and profit margins. Having a robust stock control system in place is key for businesses in the hospitality industry, and it is essential that businesses in the sector regularly review their stocktaking process to ensure it is accurate and timely.
1. The first step to successful stock control is tracking inventory:
It is essential for any hospitality business to achieve maximum profitability and efficiency. With the right controls framework, you can track products and manage stock levels. Accurate inventory tracking can help managers spot discrepancies, waste, and make informed ordering and pricing decisions.
2. Gain Real-Time Information:
Through a good stock control system, businesses in the hospitality industry can gain real-time information on their products and inventory. This helps to make educated decisions for effective inventory management, resulting in increased productivity and efficiency.
3. Correctly and Effectively Calculate Reorder Levels:
Correctly and effectively calculating reorder levels can help ensure you order the exact right amount of product at the right time, maximising revenue and minimising loss due to factors such as wastage.
4. Avoid Stock Issues:
Overstocking and out-of-stock issues can be avoided with good inventory management, thereby redusing the risk of wastage and financial loss.
5. Offer Improved Insights:
Better inventory insights can offer a better way to use inventory and avoid unncessary financial losses. Data helps businesses grow and understand trends so that they can prepare and plan accordingly.
6. Safeguard against fraud and theft
Up-to-date stock records make it easier to spot discrepancies and potential fraud or theft. This lets you investigate and prevent losses. It also gives Inland Revenue Inspectors a useful audit trail. By having an established stocktaking process in place and regular reports generated, issues can be identified and addressed quickly.
Capcon Stocktaking Services
On-property Audits
Our skilled auditors can provide data and analysis to help you improve site performance, increase profitability, and reduce risk.
Remote Stocks
We can assist and analyse the data that you process to provide additional validity to businesses that complete internal stocks and require assistance in reducing the possibility of errors.
Inventory Counts
If you require an external auditor to validate your stock holding value as either part of a sale of a business or even for your P&L, we can provide accurate counts that have been verified and checked against your system records, ensuring accuracy and reliability.
Digital Online
Self managed audits with remote support
From £50
Standard
On property visits completing valuations and cost based GP’s
From £325
Bespoke/Tailored
On property visits with full retail result, cost based GP’s, itemised variances and custom audit reports
POA
The purpose of effective stock control procedures
The main goal of stocktaking or inventory control for most hospitality businesses is to make the most money with the least amount of product investment while keeping customers (and staff) happy.
With accurate stocktaking, hospitality businesses can:
Make calculations of profit and loss
Determine which products are in demand or those that are not selling and may need to be replaced or discontinued
Calculate breakages and wastage
Detect or prevent theft or fraud
Examine expiration dates
Observe how effectively employees use the products
Ensure that products are utilised properly
Identify any quality control or supply chain issues
Other Capcon Reality Services
How Capcon can help
Capcon operates in the hospitality sector across the UK, helping single and multi-site pubs, restaurants, hotels, wine estates, theatres, casinos, hotels and major venues manage and improve stock controls within their businesses, and gain information and valuable insights on a range of key performance indicators, including:
• gross margin by product
• purchase information and cost prices
• stocking policy compliance, and more.
The effective management of central storage areas is essential, and we can review these, too. Capcon systems and reporting provide unparalleled stock transparency and control, and we’ll quickly identify issues that could affect local stock results.
Our easy-to-use Electronic Cellar Management System provides new levels of stock transfer control, with up-to-date theoretical balances. It enables any authorised user to go in, run a report and check cellar stock.
Capcon’s stocktaking services help you to:
• maximise accuracy
• improve supplier negotiations
• highlight variances
• reveal profitability, and
• use tactical promotions
As well as being skilled in using our own Management Systems our auditors have the knowledge, skills and abilities to use other available systems out there that you may have already integrated into your business systems. Our skilled auditors can verify your data without requiring you to perform in-house audits.
We’ve learnt from experience that not only are no two businesses alike, but neither are any two sites within those businesses. Because of this, we provide a range of stocktaking services that can be customised to meet your unique needs.
To find out more, contact Capcon on Tel. 01372 237 050 or Email. enquiries@capcon.co.uk. Alternatively, please complete our online form and we will get back to you.
