Inventory & Orders Management

Effective inventory management is crucial for controlling food costs, reducing waste, and ensuring you have the right ingredients when you need them. Chefy's inventory system combines standard product tracking, stocktakes, and purchase order management to give you complete control over your inventory operations.

Understanding Inventory Management
Standard Products
Stocktake Management
Purchase Orders
Supplier Orders
Inventory Tracking and Valuation
Reorder Management
Waste and Loss Tracking
Inventory Reports and Analytics
Best Practices

Understanding Inventory Management

Inventory System Overview

Chefy's inventory management system tracks physical stock through several interconnected components:

Standard Products: The items you buy, store, and use in recipes
Stocktakes: Regular counts of actual inventory on hand
Purchase Orders: Orders placed with suppliers for inventory replenishment
Supplier Orders: Detailed orders with specific suppliers and delivery tracking
Cost Tracking: Real-time cost updates and inventory valuation

Inventory Flow

Purchase Order → Delivery Receipt → Inventory Addition
                     ↓
              Standard Product Stock
                     ↓
Recipe Production → Inventory Deduction → Cost Allocation
                     ↓
              Stocktake Verification → Adjustments

Standard Products

What are Standard Products?

Standard Products represent the trackable inventory items in your venue - ingredients, supplies, and materials that you purchase, store, and use in your operations. They serve as the foundation for:

Recipe ingredient calculations
Inventory tracking and valuation
Purchase order creation
Cost analysis and reporting

Creating Standard Products

Navigate to Standard Products
- Select your venue
- Click "Standard Products" in main navigation
- Click "+ Add New Standard Product"
Product Information
- Product name: Clear, descriptive name
- Category: Food category (produce, meat, dairy, etc.)
- Subcategory: More specific classification
- SKU/Code: Internal product code (SKU = Stock Keeping Unit, a unique identifier)
- Barcode: For scanning and tracking
Specifications
- Primary unit: Base unit of measure (kg, liters, each)
- Storage type: Dry, refrigerated, frozen
- Shelf life: Days until expiration
- Allergen information: Common allergens present
- Dietary attributes: Organic, gluten-free, etc.

Product Configuration

Units and Conversions

Set primary unit of measure
Configure conversion factors (e.g., 1 case = 24 each)
Enable purchasing in different units
Maintain recipe conversion accuracy

Cost Management

Current average cost per unit
Historical cost tracking
Cost variance monitoring
Supplier cost comparison

Inventory Parameters

Minimum stock levels
Maximum stock levels
Reorder points
Economic order quantities

Stocktake Management

Understanding Stocktakes

Stocktakes are regular physical counts of your inventory that ensure your system quantities match what you actually have in storage. They're essential for:

Maintaining accurate inventory records
Identifying theft, waste, or recording errors
Updating recipe costs with actual inventory values
Meeting regulatory and insurance requirements

Creating a Stocktake

Start New Stocktake
- Navigate to Stocktake section
- Click "+ New Stocktake"
- Choose stocktake scope (full venue or specific areas)
- Set stocktake date and time
Stocktake Configuration
- Scope: Full venue, specific storage areas, or product categories
- Frequency: Daily, weekly, monthly, or ad-hoc
- Team: Assign counting teams and responsibilities
- Method: Manual counting, barcode scanning, or mobile app
Counting Process
- Print or download counting sheets
- Assign areas to team members
- Count and record actual quantities
- Note any quality issues or concerns

Stocktake Execution

Pre-Stocktake Preparation

Schedule during low-activity periods
Organize storage areas for efficient counting
Prepare counting sheets or mobile devices
Brief team on procedures and standards

Counting Procedures

Count systematically area by area
Use consistent units of measure
Double-check high-value items
Note damaged or expired products
Record counts immediately

Post-Stocktake Processing

Enter counts into the system
Review variance reports
Investigate significant discrepancies
Make necessary adjustments
Update inventory records

Variance Analysis

Understanding Variances

Positive variance: More stock than expected
Negative variance: Less stock than expected
Zero variance: Count matches system records
Variance percentage: Difference as percentage of expected

Investigating Discrepancies

Check for recording errors
Review recent transactions
Verify unit conversions
Look for unreported usage or waste
Consider theft or measurement errors

Purchase Orders

Purchase Order Management

Purchase Orders (POs) are formal requests to suppliers for products and services. They provide:

Legal protection and clear terms
Budget control and approval workflows
Delivery tracking and receiving verification
Cost control and variance analysis

Creating Purchase Orders

Generate Purchase Order
- Navigate to Orders section
- Click "+ New Purchase Order"
- Select supplier and delivery date
- Choose products and quantities
Order Details
- Supplier: Select from approved supplier list
- Delivery date: When products are needed
- Delivery location: Venue address or specific location
- Payment terms: As agreed with supplier
- Special instructions: Any special requirements
Product Selection
- Add products from supplier catalog
- Specify quantities and units
- Review pricing and extended costs
- Apply any applicable discounts
- Calculate total order value

Purchase Order Workflow

Order Creation and Approval

Create order based on inventory needs
Route for approval if required
Check budget availability
Verify supplier terms and pricing
Submit approved orders to suppliers

Order Tracking

Monitor order confirmation from supplier
Track delivery status and timing
Communicate any changes or issues
Prepare for receiving and inspection

Receiving and Verification

Check delivered items against PO
Verify quantities and quality
Note any discrepancies or damages
Complete receiving documentation
Update inventory records

Supplier Orders

Supplier-Specific Ordering

While Purchase Orders are general ordering documents, Supplier Orders are specific to individual suppliers and include:

Supplier-specific product catalogs
Negotiated pricing and terms
Delivery schedules and preferences
Invoice processing and payment

Managing Supplier Orders

Order Creation Process

Select specific supplier
Browse supplier's product catalog
Add products with current pricing
Apply volume discounts or special pricing
Generate supplier-specific order format

Delivery Management

Schedule delivery appointments
Provide delivery instructions
Track delivery status
Handle delivery issues or delays
Confirm successful delivery

Invoice Processing

Receive supplier invoices
Match invoices to orders and receipts
Verify pricing and calculations
Handle discrepancies and disputes
Route for payment approval

Invoice Management and Upload

Invoice Processing Workflow

Upload supplier invoices (paper scans or electronic files)
Automatically extract data using OCR (Optical Character Recognition) technology that reads text from images
Match invoices to purchase orders to verify accuracy
Verify pricing and quantities are correct
Route for approval and payment

Discrepancy Resolution

Identify pricing or quantity differences
Communicate with suppliers for clarification
Adjust orders or invoices as needed
Document resolution for future reference
Update records and systems

Inventory Tracking and Valuation

Real-Time Inventory Updates

Automatic Updates

Recipe production deducts ingredients
Purchase receipts add inventory
Stocktake adjustments correct quantities
Waste entries reduce stock levels

Manual Adjustments

Correct counting errors
Account for unreported usage
Handle damaged or expired products
Process transfers between locations

Inventory Valuation Methods

Cost Calculation Methods

FIFO (First In, First Out): Use oldest costs first
Average Cost: Weighted average of all purchases
Latest Cost: Most recent purchase price
Standard Cost: Fixed cost for planning purposes

Valuation Accuracy

Regular cost updates from suppliers
Stocktake-based cost verification
Purchase price variance tracking
Market price monitoring

Cost Tracking

Recipe Cost Impact

Inventory costs directly affect recipe costs
Cost changes automatically update recipes
Menu item profitability recalculated
Margin analysis updated in real-time

Cost Variance Analysis

Track cost changes over time
Identify significant cost increases
Compare actual vs. budgeted costs
Monitor supplier price performance

Reorder Management

Automated Reorder Points

Setting Reorder Levels

Minimum stock levels based on usage
Lead time considerations
Safety stock for demand variability
Economic order quantities for efficiency

Reorder Alerts

Automatic alerts when stock falls below minimums
Usage trend analysis for reorder timing
Seasonal adjustment recommendations
Emergency reorder procedures

Demand Forecasting

Usage Pattern Analysis

Historical consumption data
Seasonal demand variations
Menu popularity impact on ingredients
Special event and promotion planning

Predictive Ordering

Sales forecast integration
Menu mix impact on ingredient needs
Event-based demand planning
Waste reduction through better forecasting

Waste and Loss Tracking

Recording Waste and Loss

Types of Waste/Loss

Spoilage: Expired or deteriorated products
Damage: Products damaged in storage or handling
Spillage: Accidents and mishandling
Theft: Missing inventory
Overproduction: Prepared food not sold

Waste Documentation

Record waste quantities and reasons
Take photos for significant losses
Note prevention opportunities
Track waste costs and trends

Waste Reduction Strategies

Prevention Measures

Improve storage conditions and procedures
Enhance staff training on handling
Implement first-in-first-out rotation
Better demand forecasting and ordering

Cost Impact Analysis

Calculate waste cost percentages
Track waste trends over time
Identify high-waste items
Implement targeted reduction programs

Inventory Reports and Analytics

Key Performance Indicators

Inventory Turnover

How quickly inventory is used
Efficiency of inventory management
Cash flow impact
Storage cost optimization

Stockout Frequency

How often you run out of products
Service level performance
Customer satisfaction impact
Ordering system effectiveness

Inventory Accuracy

Stocktake variance percentages
System reliability measures
Process improvement needs
Training effectiveness

Reporting Capabilities

Standard Reports

Current inventory levels and values
Purchase order status and history
Stocktake results and variances
Waste and loss summaries
Supplier performance metrics

Custom Analytics

Cost trend analysis
Usage pattern identification
Supplier comparison reports
Profitability impact analysis
Forecasting and planning reports

Best Practices

Inventory Organization

Storage Best Practices

Organize by category and usage frequency
Label clearly with product names and dates
Maintain proper storage conditions
Implement first-in-first-out rotation
Keep storage areas clean and organized

System Organization

Use consistent naming conventions
Maintain accurate product specifications
Keep supplier information current
Regular data cleanup and maintenance
Standard operating procedures

Process Optimization

Efficient Workflows

Streamline ordering processes
Standardize receiving procedures
Implement regular stocktake schedules
Automate reorder notifications
Integrate with production planning

Staff Training

Train on proper procedures
Emphasize accuracy and consistency
Regular refresher training
Cross-train for operational resilience
Monitor performance and provide feedback

Cost Control

Cost Management Strategies

Regular supplier price comparisons
Volume discount negotiations
Seasonal purchasing optimization
Waste reduction programs
Inventory level optimization

Financial Controls

Purchase order approval workflows
Budget monitoring and alerts
Cost variance investigation
Regular financial reviews
Performance benchmarking

Troubleshooting Common Issues

Inventory Discrepancies

System vs. Physical Counts Don't Match

Review recent transactions and adjustments
Check for unreported usage or waste
Verify unit conversions and calculations
Look for data entry errors
Consider theft or measurement issues

Recipe Costs Seem Wrong

Verify inventory costs are current
Check recipe quantities and units
Review supplier pricing updates
Validate conversion factors
Confirm stocktake impact on costs

Ordering Problems

Can't Create Purchase Orders

Check supplier setup and approval
Verify product availability in catalogs
Confirm user permissions for ordering
Check for system integration issues
Validate required order information

Invoice Processing Issues

Verify invoice format and completeness
Check purchase order matching
Review pricing and calculation accuracy
Confirm supplier information
Check approval workflow status

Integration with Other Features

Recipe Management

Standard products serve as recipe ingredients
Inventory costs automatically update recipe costs
Recipe production deducts inventory quantities
Yield tracking affects inventory calculations

Inventory costs impact menu item profitability
Popular menu items drive inventory requirements
Cost changes affect menu pricing decisions
Inventory availability affects menu options

Supplier Management

Supplier products link to standard products
Purchase orders are sent to specific suppliers
Supplier performance affects inventory planning
Pricing updates flow from suppliers to inventory

Production Planning

Inventory levels inform production capacity
Production plans drive inventory requirements
Prep lists are generated from inventory needs
Production efficiency affects inventory usage

Getting Help

Common Questions

How do I perform an accurate stocktake?
Why don't my inventory costs match my purchases?
Can I track inventory across multiple locations?
How do I handle supplier price changes?

Support Resources

Inventory management training materials
Stocktake procedure guides
Cost calculation tutorials
Purchase order process documentation

Training Resources

Inventory management workshops
Cost control seminars
System feature training
Best practice sharing sessions