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How do I manage my pubs inventory?
Inventory management is a simple topic, but no pub can run without it. That's why in this week's blog we're doing a deep dive into inventory management.
Here at 7 Day Cellar, we're revolutionising stock management. First let's outline some best practises and systems that could grow your revenues by over 20%...
Inventory management is crucial for keeping your pub alive. If there’s no stock, you can’t sell anything. If there’s too much stock – then you risk products going off and tie up your cash, which could otherwise be spent on growing the business.
As you can see – this is a careful balancing act and one you must perfect to run a successful pub.
Why do I need a more effective stock management system?
Whilst many businesses can survive without systems in place, by more carefully managing your stock, you can more effectively track your wastage. In fact, spillage and storage represent a loss of around 6 ounces per litre. So you could be losing 18% of your revenue just on this.
With better tracking of your stock, you’ll also help to prevent running out of items (although that’s what we’re for!) and also reduce theft. A clearer picture of your stock gives you a clearer picture of your business.
First, let’s start with the basics. It’s essential to make sure your cellar is organised, which will help you gauge your current stock levels and ensure products don’t go out of date.
Stock rotation is a key component of cellar organisation. You should regularly rotate your stock, so your freshest product sells first. This is typically known as a FIFO, first in first out, system, where stock with the most recent best before date sells first. For smaller pubs implementing this system is usually not difficult, but it can be problematic for larger venues.
At 7 Day Cellar – we pride ourselves on our stock rotation services, organising your cellar on every drop – ensuring to collect empties and stack kegs if necessary.
How do I track my pub’s inventory levels?
Tracking your pub’s inventory levels is all about putting regular systems in place. Try to always get into the habit of doing frequent stock takes – as you will measure a change in inventory over a period.
With regular stock tracking, you can measure your pub’s consumption and also work out a buffer stock level – to prevent you from ever running out.
To look at your pub’s consumption, you take the beginning inventory, subtract the ending inventory, and add any stock received.
What technology can help me better track my pubs stock?
One solution is using several apps in the market that enable you to measure and record liquor levels using a mobile device. All you do is scan the barcode of a product, enter your beginning, current and received stock, and then your app will calculate your consumption automatically.
You can also outsource your stock-taking solutions to an external company, which can check that your practices are working well.
What are flow meters? And how can they help me?
Flow monitoring equipment can help monitor the level of product flowing through the draught lines, which can help you gain a more accurate picture of your sales and waste. However, they are more typically used by tied pubs to ensure their tenants aren’t buying out.
Whilst you can invest in systems to more effectively measure the quantities sold and the amount of product remaining in kegs, it may not be worth the significant investment costs. Instead, to reduce your wastage and more effectively manage stock levels, implement training and systems that establish a routine of reducing wastage and staying on top of your stock levels.
Regular stock checks will ensure that you can estimate the quantity of stock to have on hand, so you won’t run out until your next delivery.
You should also document any wastage, spillages, ullages or stock not sold at full price. This tracking will allow you to track your stock more and tie your stock levels to your sales.
Moreover, implementing systems to provide more visibility on your stock levels will help reduce the risk of being a victim of theft.
However, managing large stock levels can be costly (for your cash flow and wage costs) and very time-consuming. This is why using 7 Day Cellar could revolutionise and streamline your business …
How we’re revolutionising stock management
At 7 Day Cellar, we firmly believe you shouldn’t need to tie up thousands of pounds worth of working capital in stock. This makes your business extremely susceptible to changes in demand, and with British weather impacting pub trade so much and being so unpredictable, holding too much stock can be extremely detrimental. That’s why we offer a same-day delivery service – so you know you’ll receive your stock before 7 p.m. no matter what. This service gives you the peace of mind to significantly reduce the stock on the floor – which can save you up to 600% of the upfront costs of holding stock compared to a once-a-week delivery slot!
Imagine how many sales you could drive for that week if you didn’t have to worry about having enough money to cover the costs of your large delivery. Instead of paying in one go, break up your costs and only pay once your stock has sold.
If you think this system could help streamline your business and put more cash in your pocket, just get in touch with the details below.