How to implement a system for stock control

Start by creating a simple list of all your stock items and counting exactly what you have. This initial count is your baseline. The key to good stock control is to regularly track what comes in (deliveries) and what goes out (sales, usage, and waste), so you always know when to reorder. You can begin with a simple spreadsheet, but the goal is to have a reliable process that stops you from running out of essentials and wasting money on over-ordering.

Why is stock control so important?

Getting a handle on your stock might seem like a chore, but it's one of the most effective ways to improve your profitability. A good system helps you to:

• Control Costs: By knowing exactly what you have, you avoid buying things you don’t need, freeing up cash for other parts of your business.
• Reduce Waste: For items with a shelf-life, like food and drink, tracking stock helps you use older items first, cutting down on costly spoilage.
• Keep Customers Happy: It ensures you don’t run out of popular products, preventing customer disappointment and lost sales.

Getting Started: Your Step-by-Step Guide

You don't need a complicated or expensive system to begin. Follow these steps to get control of your inventory.

1. Create a Master List: List every single item you buy and need to track. Group them into logical categories like 'Dry Goods', 'Beverages', 'Cleaning Supplies', or 'Retail Products'.
2. Do a Full Stocktake: This is the big one. You need to physically count everything on your list. It’s time-consuming but absolutely essential to get an accurate starting point.
3. Choose Your Tracking Method:
   • Spreadsheet: A great starting point. You can find free templates online or create your own. It's flexible and helps you track counts, deliveries, and sales.
   • Stock Control Software: As you grow, dedicated software is a wise investment. Many modern till systems (EPOS) have this built-in, automatically updating your stock levels with every sale.
4. Set Your 'PAR Levels': A PAR level is the minimum amount of an item you want to have in stock at any time. When you hit that level, it’s your trigger to reorder. To set it, think about how quickly you use an item and how long it takes for a new delivery to arrive.
5. Schedule Regular Counts: Consistency is everything. You might do a quick check of key items daily, but you must schedule a full, regular stocktake – usually weekly or monthly – to keep your records accurate.

Best Practices for Success

First-In, First-Out (FIFO): This is a golden rule for perishable goods. Always organise your storage so that the oldest stock is at the front and gets used first. This simple habit drastically reduces waste.

Keep it Tidy: A well-organised stockroom or storage area makes counting quicker and more accurate. Label shelves and have a designated place for everything.

Track Everything: Make sure you have a process for recording not just sales, but also wastage, breakages, or items used for staff training. If it leaves the shelf, it needs to be accounted for.