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Streamlining Your Cafe’s Inventory Management Process

  • 5 min read

The Benefits of Streamlined Inventory Management for a Coffee Shop

Effective inventory management is crucial for the success of any cafe. By streamlining your cafe’s inventory management process, you can improve efficiency, reduce waste, and increase profits.

7 tips for Streamlining Your Cafe’s Inventory Management Process

  1. Use a reliable inventory management system: A reliable inventory management system helps you accurately track your inventory and identify areas for improvement. This may involve using a software-based system or a manual system such as a spreadsheet. You might even use printed pages on a clipboard if you prefer to keep it simple.
  2. Implement a first-in, first-out (FIFO) system: Your inventory of long-life supplies such as canned goods and dried food can perish – damaged packaging, poor storage. A FIFO system reduces risks of spoilage and waste. It involves using the oldest inventory first. This can be achieved through proper storage and labelling of inventory, as well as tracking expiration dates. Do what the supermarkets and convenience stores do, always restock newer items at the back of shelves, fridges and freezers. That way staff can easily grab the oldest stored items to use first.
  3. Set up an inventory reordering system: Setting up an inventory reordering system can ensure that you never run out of key inventory items. which can help improve efficiency and customer satisfaction. This may involve setting up automatic reorder alerts (either in a calendar, app or with your suppliers) or have staff manually review your inventory of supplies on a regular basis.
  4. Conduct regular inventory counts: Menu, staff and seasonal changes can all play a part in what gets left in storage or forgotten. Regular inventory counts can help remind you of what you have as well as ensure that your inventory records are accurate and up-to-date. Depending on the size of your cafe business, this may involve conducting daily, weekly, or monthly inventory counts.
  5. Monitor inventory levels closely: If you’re a cafe owner who doesn’t get involved in the daily running of your coffee shop it can be easy for inventory to silently grow. Unnecessarily tying up capital (your money) in stored supplies. Monitoring inventory levels closely can help you identify trends and make informed business decisions. This may involve tracking inventory levels and sales data, and using this data to optimise ordering and your inventory management process.
  6. Implement a forecasting system: A forecasting system is your way of predicting future inventory needs based on past data and current trends. Coming up with your own special way of deciding when order sizes need to get bigger and then drop back to “regular” volumes, are unique to each cafe. For example some cafes thrive during January in Australia, when the summer school holidays are in full swing, whereas other cafes experience January as their quietest period. Having a forecasting system helps you optimise your ordering and inventory management process to improve efficiency in your coffee shop.
  7. Utilise technology: Making use of technology to help streamline your inventory management process can reduce the admin jobs you need your team to do. Using a barcode, RFID or QR code system to track inventory, with a mobile device to scan and track levels in real-time can increase staff efficiency and provide fast reporting and data.

Making a Cafe Inventory Management Process Work for You

In addition to the tips listed above, there are a few other key strategies to keep in mind when streamlining your cafe’s inventory management process:

  1. Analyse your data: Analysing your data will help you identify trends and areas for improvement in your inventory management process and cafe business. This may involve tracking data such as sales data, inventory levels, and customer demand, then using this data to optimise your inventory management process.
  2. Collaborate with your team: Collaborating with your team helps to ensure that everyone is “on the same page” when it comes to inventory management and waste. This can mean involving your team in the development of inventory management processes and strategies, or getting feedback and ideas from your team.
  3. Stay organised: Being organised and staying organised ensures your inventory management process runs smoothly. From implementing a system for organising and storing inventory, to creating clear and concise documentation for managing inventory; when everyone knows what is supposed to happen, they can do the right thing.
  4. Review and optimise your processes regularly: As with any system or process, you need to review and optimise your inventory management processes regularly. Doing this ensures that you are always using the most efficient and effective methods – the easiest steps to follow or teach, the least wasteful process, the most efficient to track and accurate report to on, etc. Your review processes become most useful when you include a step for making changes as you discover you need them.

Overall, streamlining your cafe’s inventory management process is crucial for the success of your business.

By implementing a reliable inventory management system, with consideration for a FIFO system, an inventory reordering system, with regular inventory counts, plus monitoring inventory levels closely, you can optimise the way you handle inventory management and drive further success in your cafe business.