The process and importance of inventory certainly needs no introduction; As we determine the success, failure, or current status of any business venture, particularly the food and beverage industry, we do so with the help of inventory procedures! As long as the beverage inventory method is appropriate and its procedure is systematic, organized, and regular, much information is revealed about the entire venture, for example, its transactions, its expected profits, its profit indicators, etc.
Although the name may represent a simple task, the process is actually not and can be quite taxing on a company’s resources. When the size and type of the business differ, the inventory process will also be different and if the size is expanded, the process becomes much more tedious. Understanding the old business adage “time is money”, several software programs are now available that dramatically reduce the amount of time you spend performing repetitive inventory activities.
Choice of beverage inventory method
An ongoing inventory system can go a long way when doing beverage inventory! In any case, a method would be attached that controls the physical stock knowing the current stock level of each product sold and this is done in real time, with continuous updates. This process would typically involve extensive recording of all receipts, current balances, and issues for each item! If this comprehensive record is managed well and vigorously, frequent physical inventories can be avoided, as the stock level can be accounted for at all times. But to ensure that the recorded stock level and the actual stock level match, physical inventory becomes vital; this is to identify any discrepancies between the two figures. Now here, there could be two types of physical inventory: continuous or periodic. The continuous inventory of physical drinks would be carried out several times a year, while the periodic one would be carried out only once a year, that is, at the end of the accounting year. Once the physical inventory is taken, the numbers are compared to the stock levels recorded in the inventory system. It’s easy to identify any troublesome issues with the help of this quick comparison.
Identify discrepancies and select the correct method
If there is a discrepancy between the recorded numbers and the physical stock numbers, it can be explained by a number of reasons, including natural waste (such as evaporation or bulk fractionation), theft, document falsification, clerical errors in the inventory system, or errors storage. (both administrative and physical)! So when compared, the continuous method has a better chance of being selected than periodic beverage inventory. Although the additional labor and time are the main disadvantages of the continuous method, it boasts more advantages. Not only does it improve the quality of physical inventory (due to frequency), but it also allows for a full investigation of all inventory discrepancies, detects any unauthorized procedural changes, eliminates incidents of production delays, and also helps maintain a highest standard of work.
Summary: Taking inventory is annoying work, as well as important. You can choose continuous or periodic beverage inventory depending on the type, size and need of your business. However, continuous physical inventory is always recommended because it helps to measure and control stock levels.