Inventory management procedure is important to the hospitality industry because it allows for consistency between the facilities, simplification of processes, accountability and a resource for inventory information. This procedure provides tool for effective running of hospitality operations. It outlines guidelines for controlling inventory stock for ultimate salability, usability and traceability, and ensuring efficient selection and delivery of products. Inventory Control Procedure should be utilized by purchasing, shipping, receiving, warehouse and accounting personnel. Food products and other perishables inventory should be maintained on a first-in, first-out (FIFO) when stocking shelves. This will help keep the inventory fresh.
The procedures outlined below are considered minimum standards;
To ensure stores and inventory are effectively and efficiently managed.
This covers, receipt, issuance and stock control of the Hospitality Units.
LPO: Local Purchase Order
SIN: Stores Issue Note
The store’s clerk shall be responsible for implementation of this work instruction.
- RECEIVING GOODS IN STORES
- The officer receiving the goods shall check each commodity, confirm the quantity and quality as per the delivery note and also confirm that all the goods received are in agreement with the LPO.
- The store’s clerk shall sign the Delivery Note if all the goods supplied to meet the specifications and stamp on it and retain the original copy.
- In case of any non-conformity of the delivered goods, the store’s clerk shall return the goods back to the supplier for replacement and Credit Note is given in return.
- The store’s clerk shall countercheck the Delivery Note together with the invoice to assure that the goods supplied are as per the LPO.
- The store’s clerk shall invite the inspection and Inspection and Acceptance Committee to verify the items received for all goods exceeding Kshs 100,000/= in any particular invoice.
- The Inspection and Acceptance Committee shall fill in and sign the Inspection and Acceptance forms which shall be filled for future references.
- The store’s clerk shall attach the Delivery Note and the copy of LPO to the Invoice.
- The store’s clerk shall raise Goods Received Note for all goods receipts and enter all the details of those particular goods in the Bin card (or Ledger Book) to update the stock level.
- The store’s clerk shall record all invoices on a daily basis for all daily purchases and monthly for all monthly purchases in Invoice Register Book and forward them to the Restaurant Manager who shall certify.
- The Restaurant Manager shall return all the certified invoices to the store’s clerk who shall then record them in a Supplier Invoice Dispatch Book.
- The store’s clerk shall forward all the recorded invoices to the Procurement Assistant.
- The Procurement Assistant shall countercheck all the suppliers’ invoices and attach all relevant supporting documents and forward to the Lead Expenditure for payment.
- ISSUANCE OF STOCK ITEMS TO KITCHENS
- User department shall fill in SIN for all the items required.
- The Chef/Head Cook shall authorize the SIN and forward it to the store clerk.
- The Store Clerk shall receive the approved SIN from the user department and issue the items as per the request. In case of insufficient stock, the store Keeper shall issue the stock available and indicate accordingly. The SIN shall be signed by the sores clerk and the user receiving/collecting the items.
- The Stores clerk shall record the quantities issued on the issuance column in the SIN and Bin Card (or Ledger Book) to update the stock balance.
- The Stores clerk shall cost all the issues in the SIN for costing purposes.
- The Stores clerk shall file the original copies of the SIN in a SIN File and forward the duplicate to the Chef or the Head Cook for proper record keeping and reference.
- STOCK CONTROL IN THE STORE
- The Stores clerk shall record all the goods received and issued in the Bin card (or Ledger Book) and ensure it is updated on daily basis.
- The Stores clerk shall raise Requisition Note for replenishment of stock and forward to the Restaurant Manager for approval then send it to the Procurement Assistant for the items to be procured.
- The Stores Clerk in consultation with the Chef/Head Cook shall identify slow-moving items, expired, obsolete and forward the list to the Restaurant Manager who shall then communicate to the Chairman of the Disposal Committee for necessary action.
- STOCK RE-ORDER LEVELS
- The Stores Clerk in consultation with the Chef/Head Cook shall classify the stock items into two categories: (i) fast moving and (ii) slow-moving items.
- The Stores Clerk in consultation with the Chef/Head Cook shall determine stock re-order levels for each item depending on the turnover levels.
- The Store clerk shall update reorder levels in Bin card (or Ledger Book).
- ANNUAL AND MONTHLY STOCKTAKING
- The Stores clerk shall be performing a monthly stock and indicate the closing balances in the Bin card (or Ledger Book).
- The Restaurant Manager and the Chef/Head Cook shall counter check the Physical balances are tallying with the quantities in the Bin card (or Ledger Book).
- Annual Stock take shall be done by the Stores Clerk in consultation with Procurement Assistant and the Restaurant Manager who shall involve the accountants and the internal auditors in the exercise accordingly as at 30th June every year.
- The Restaurant Manager and the Stores Clerk shall ensure all stock items are counted in the store.
- The Restaurant Manager and the Stores Clerk shall ensure that accurate information is captured in terms of quantity, price, and the expiry date.
- The Stores Clerk under the supervision of the Restaurant Manager shall reconcile stock balances in the Bin card (or Ledger Book) with the reported figures.
- If there are any variations, The Restaurant shall carry out investigations to discover the cause of the Variation and recommend any necessary action to management.
Categories: STANDARD OPERATING PROCEDURES (SOP)