Stock Taking Techniques And Strategies For Cilantro Restaurant In Moorabbin, Australia

Introduction to Cilantro Restaurant

Question:

Discuss about the Enable Cost Optimisation in Craft Breweries.

One of the most important components of manufacturing processes is stock taking and maintaining. Since, stocks of raw materials, work-in-progress and finished goods form considerable portion of the current assets of manufacturing business organisations, they maintain them strategically. The paper revolves around an Egypt based restaurant called Cilantro who is present Moorabbin, Australia. The opens by introducing the restaurant to the readers and then goes on to explore its purchase and storage requirement pertaining to inventory. Then next section point out the appropriate stock taking method.

Cilantro is a coffee café based in Moorabbin which offers food and refreshments and also trains students perusing hotel management courses.. The aim of the restaurant chain is to provide its customers with high quality food products. The restaurant chain also aims to bring about continuous innovation in its product line. Cilantro maintains highly skilful staff members who provide superior services to the customers which enhances the latter’s satisfaction. The product line of the restaurant can be divided into entrée, main and dessert. The entrée segment consist of light food items like French onion soup while the main consists of items made from lamb and chicken. The dessert section consist of items like lemon tarts and ice creams.

The uniqueness in the purchase requirements, storage and disposal of food items which Cilantro follows can be traced from the product line of the restaurant. The main product of the restaurant consists of food items which are perishable. Thus, the restaurant in order to minimize spoilage of stock of raw materials and losses incurred thereto, has to manage the storage of raw materials for its products like raw meat and raw fish strategically to minimize rotting. Again while disposing the degenerated raw material (which cannot be totally prevented), the restaurant has to ensure that its waste disposal causes minimum environmental pollution (Chen et al., 2015).

One can also point out that the Cilantro uses chemicals, spices and flavouring agents while preparing food items. The restaurant chain has to ensure that these spices and flavours are disposed in environmental friendly ways.

The third category of items which the restaurant requires to store is extra finished products. The restaurant requires to store them to keep them fresh and in proper conditions. It also needs to dispose waste finished products in environment friendly ways (Bolton, 2014).

Purchase and Storage Requirements for Inventory

It is done on a quarterly, half-yearly or monthly basis and the stock is checked for a period of over one or two days. This process allows in recording the physical stocks on stock sheets or scanning and comparing them with the file for stock validation (Titze et al., 2016).

This type of stock taking technique is done throughout the year on a prearranged plan of action. Some of the stocks are counted on a monthly basis then some are counted on a weekly basis and the rest on daily basis. This helps in showcasing that the stocks are recorded for all the items so that the process of validation can be done (Bakker & Demerouti, 2017).

This method helps the business in checking when the stocks are received from the suppliers or while it is being issued to the customers. This method helps in presenting the checks of the stocks when the items are coming in or going out within the system.

This method helps in validating the particular stocks that are finished or are present at a minimum level within the organization. This validation is mostly done by the employees who are present within the organization. These stocks are then listed and reordered so that it can help in replenishing the finished stocks (Ellis, 2015).

This particular method helps in taking up the stocks at an annual basis. This results in closing the warehouses for a few days, as the stocks are being counted for the entire year. Most of the invoices and the receipts that are present for the stocks are cancelled so that the counting of the stocks can be completed in a proper manner. After the stocks have been recorded it is them matched with the stock validation file so that it can be verified (Van Dellen, Sivaprasad & Bas, 2015).

The restaurant will be using the stock out validation process, as it will help them in understanding the particular stocks that are finished and needs to be replenished within the system. This will help the restaurant in understanding the requirements of the company in an efficient manner. This would also result in spending fewer amounts of resources by the restaurant, as they just need to order the stocks that need to be replenished within the system. The restaurant will have the following benefits:

The stock out validation technique will help the organization in understanding the replenishments of the stocks that are required within the system. This will help the company in understanding the importance of the stocks that are being demanded by the customers, which will help in ordering the important goods on a priority basis. It will also prevent the obsolescence of the products within the restaurant. The raw materials of the company that is the food items will always be available within the restaurant so that it can help in serving the customers with their choice of menus. It will also prevent the loss of the raw materials and the finished products due to the effect of degeneration.

Appropriate Stock Taking Methods

The stock out validation for the restaurant will result in saving the labor and the use of energy as well. The raw materials that will be ordered on the first basis will be used up on a priority basis as well before the next stock of materials is being ordered by the company. An example of this would the food items that are being ordered by the company first will help in being consumed first as well so that up on its completion the next order of stocks can be ordered by the company.

1. The restaurant should use methods like economic order quantity or just in time methods to order stock of raw materials.
2. It must specify the particulars like quality parameters, amount and specifications while ordering stocks.
3. The restaurant must take precaution of maintaining proper temperature conditions and hygiene while holding stock.
4. It must check the warehouses on regular and ensure that they follow risk management norms.
5. It must employ staff trained in handling stock to maintain stock of raw materials and finished goods.

One the grounds on above analysis of different types of stock taking methods and specific nature of the business of Cilantro, the two following stock taking methods can be recommended for the restaurant:

Cilantro must adopt the continuous stock taking method and take stocks on regular basis say weekly. This would enable the restaurant that it is able to make maximum usage of raw materials before they degenerate. Thus, this process would enable the food business to minimise losses it incur due to degeneration of raw materials.

Cilantro must use pick accuracy stock taking system while taking delivery of raw materials. This would ensure that the suppliers supply raw materials in appropriate condition and at the agreed price between the two parties (suppliers and restaurant). 

Conclusion:

Therefore it can be concluded that Cilantro can use the technique of stock out validation so that it can efficiently use up the raw materials and then order the next set of materials. This will result in keeping a check on the process of orders and the employees will be able to inform the management regarding the number of orders that are being made on a monthly basis regarding the raw materials. It will also allow the management in allocating the resources in a proper manner so that there can be a count o the raw materials that are being ordered.

References:

Bakker, A. B., & Demerouti, E. (2017). Job demands–resources theory: Taking stock and looking forward. Journal of Occupational Health Psychology, 22(3), 273.

Bolton, D. L. (2014). New menu labeling requirements for retail food chains: Possible impact on small business restaurants. The Entrepreneurial Executive, 19, 105.

Chen, R., Smyser, M., Chan, N., Ta, M., Saelens, B. E., & Krieger, J. (2015). Changes in awareness and use of calorie information after mandatory menu labeling in restaurants in King County, Washington. American journal of public health, 105(3), 546-553.

Christopher, M. (2016). Logistics & supply chain management. Pearson UK.

Ellis, S. (2015). Measuring Traditional Skills Taking Stock Of What We Have Before We Lose It: Craft Statistics a Way Forward. Alliance for Artisan Enterprise, The Aspen Institute.

Ford, T. (2016). Pegasus Legal Services for Children: Taking Stock of a Rebellious Non-Profit Practice in New Mexico. Clinical L. Rev., 23, 107.

Titze, J., Huber, H. W., & Hamel, C. (2016). The potential of wort concentrate used for beer production to enable cost optimisation in craft breweries. Yeast (dry yeast), 10, 10-00.

Van Dellen, S., Sivaprasad, S., & Bas, T. (2015). The value effects of changes in leverage: Evidence from the Travel and Leisure sector.