Tips for Par Level Calculations to Help Run Your Restaurant Efficiently

Par inventory is a cost-effective way that many small business owners use to save costs. Although the par level calculation model What is Par Inventory? is fairly simple to compute, determining a course of action based on these numbers is not. The additional steps to leverage to maximize the benefits of par inventory include a precise mixture of data, reporting, and staff empowerment. A successful par inventory strategy will involve having this mixture present in a comprehensive POS solution.

Use POS Data to Generate Stock and Reordering Caps

The comprehensiveness of the information stored within your POS solution will directly impact the accuracy of par-level calculations. The POS technology you employ must not only present advanced, enterprise-level data management capabilities but must also offer powerful and customizable reporting. It will be through these advanced reporting features that you will generate accurate stock and be able to reorder with greater precision.

Creating in-depth reports to monitor the thresholds set by par level calculations need to include some fairly specific elements to be considered a complete solution:

The reorder amount threshold must be based on recent historic sales and inventory data.Avoid ordering for recipe management.Distribute reorder notifications via email when an order needs to be placed.Include stock rotation information to better ensure the freshness of ingredients.Coordination of delivery dates versus the forecasted consumption period.

Using these as the foundation for building a proactive par inventory strategy will improve the accuracy and responsiveness of ordering. Backed by powerful POS data management and the integration of data from all parts of your restaurant, you will be well-positioned to strengthen inventory controls. Additionally, you get to keep your most popular dishes on the table in front of the customer while having at your fingertips the insights needed to fine-tune your menu as trends begin to emerge.

Strengthen Inventory Controls

The tools in an innovative POS solution will enable you to design and maintain a strong set of inventory controls. But as strong of an inventory foundation as par level calculations will build, there is still some work left to be done to achieve inventory perfection. At the core of the remaining work is the data you keep, because no matter how accurate this information is, there is still the chance that customer behaviors take a drastic turn, putting you almost back to square one.

A sudden surge in sales can trigger a run on inventory that starts cutting into the 25% buffer inventory you keep on hand as per par inventory best practices. But instead of the usage of stock reaching the zero mark and stopping there leading to a serious blind spot in your par inventory sheet, allowances must be in place to offer the ability to present negative stock numbers in reporting. This provides a highly accurate view of your new rates of inventory usage and allows you ample time to adjust.

There can also be the chance of sales suddenly slowing to a crawl either due to an extreme market condition such as the recent COVID-19 pandemic or the arrival of a competitor to your market. But instead of this leading to drastic overstocking, your par level calculations will quickly reveal the trending slowdowns allowing you to proactively correct inventory errors for future stock ordering which reduces the potential for loss until business picks up again.

Integrate Advanced Invoicing Options to Support Par Inventory

Thanks to web-based invoicing tools that can integrate directly into your POS system, you can finally streamline your invoicing and spend less time using paper and pen to track and manage your orders. This provides the freedom of data movement from transactions into the invoicing software to create pre-populated purchase orders (PO) that only need to be reviewed and sent with the click of a button. The POs that are sent in this way will include a convenient link for rapid payment while you will gain the ability to readily accept and pay invoices in the same way.

Par Level Calculation Starts With a POS-Driven Data Foundation

The basic elements needed to compose a par-level inventory sheet are all based on data. This means that the POS technology you rely on to operate your restaurant must provide cutting-edge levels of data management for a par inventory strategy to work. But instead of guessing what pieces you need to make it all work, engage the knowledge and experience of a renowned POS provider that can partner with you and take your restaurant to the next level.

Our energetic consultants thrive when they are helping small businesses address their challenges, like par level calculations, with technology. This is why talech stands ready to support you in all of your POS needs, working alongside you to develop a solution and business strategy that works for and with you and keeps you passionate just like we are.