Hotel Inventory Management | Standard Procedures

Hotel inventory management standards are an imperative character in the hotel sector as it promotes uniformity, responsibility, as well as simplicity of the procedure.  This is an instrument for the successful administration of hotel operations. It is a guiding principle for managing inventory stock for eventual scalability, usability, and traceability. Besides, it ensures competent selection and delivery of products. Hence, Inventory Control procedures should be employed by procurement, shipping, receiving, storing, and accounting employees. Inventory for all perishables should be maintained on a first-in, first-out (FIFO) when stocking shelves. This assists in keeping the inventory fresh.

The processes summarized below are deemed minimum standards

Purpose: To guarantee effective and efficient management of stores and inventory.

Scope: This includes receipt, issuance, and stock management in the hotel units.

Terminologies:

• LPO refers to Local Purchase Order
• SIN signifies Stores Issue Note

Responsibility: The storekeeper is accountable for implementing this work instruction.

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The Procedure for Receiving Goods in Stores

The store’s clerk should;

• Confirm each product, confirm the amount and value according to the delivery note. Besides, he/she confirm that all the products received are in harmony with the LPO.
• Sign the Delivery Note if all products delivered meet the specifications and stamp on it and keep the original copy.
• Return non-conformity products delivered back to the vendor for substitution and receive a Credit Note in return.
• Examine the Delivery Note jointly with the invoice to ascertain that the goods delivered agree with the LPO.
• Invite the Assessment and Inspection and Acceptance Committee to confirm products received in a particular invoice.
• The Inspection and Acceptance Committee fills and signs the Inspection and Acceptance forms which are filled for future references.
• The store’s clerk shall attach the Delivery Note and a copy of LPO to the Invoice.
• He or she shall raise the Goods Received Note for all products received and enter the details of the goods in the Bin card (or Ledger Book) to adjust the stock level.
• The store’s clerk shall record daily invoices for purchases as well as monthly purchases in the Invoice Register Book. Thereafter, send them to the Restaurant Manager for certification.
• The Restaurant Manager shall return all the certified invoices to the store’s clerk who then documents them in the Supplier’s Dispatch Book.
• The store’s clerk shall forward all the documented invoices to the Procurement Department.
• The Procurement Officer shall countercheck all the invoices from the suppliers and attach all pertinent support documents. Thereafter, he/she forwards them to the Lead Expenditure for disbursement.

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Hotel Inventory Management Standards | Kitchens Stock Issuance

• User division shall fill in SIN for all the goods requisite.
• The Chef or Head Cook shall approve the SIN and send it to the store’s clerk.
• He or she shall obtain the approved SIN from the consumer department and issue the products as per the requisition.
• If the stock is inadequate, the storekeeper shall issue the available stock while indicating accordingly.
• The SIN shall be authenticated by the store’s clerk and the consumer receiving or collecting the products.
• The Store’s clerk shall write the quantities issued within the issuance column in the SIN and Bin Card as well as update the stock balances.
• He or she shall document all the issues in the SIN for costing and accountability purposes.
• The Store’s clerk shall file the original copies of the SIN in a SIN File. Thereafter, he shall forward the carbon copy to the Chef or the Head Cook for record-keeping and future reference.

Hotel Inventory Management Standards | Sock Management

• The Stores clerk shall record goods received and issues in the Bin card or Ledger Book. On the other hand, he shall ensure it is updated on daily basis.
• He or she shall raise a Requisition Note for the replacement of products before forwarding it to the Restaurant Manager for authorization. Similarly, he shall forward it to the Procurement Officer for the goods to be purchased.
• The Store’s Clerk in liaison with the Chef or Head Cook shall classify slow-moving, expired, and obsolete products. Thereafter, he shall forward the list to the Restaurant Manager who then communicates to the Chairman of the Disposal Committee for requisite action.

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Hotel Inventory Management Standards | Stock Re-Order Levels

• The Store’s Clerk in liaison with the Chef or Head Cook shall categorize the stock items into two categories: (i) fast-moving items and (ii) slow-moving items.
• He or she in liaison with the Chef or Head Cook shall establish stock re-order levels for every product depending on the revenue levels.
• The Store’s clerk shall update re-order levels in the Bin card or Ledger Book for accountability and reference.

Monthly, Quarterly, and Yearly Stocktaking

• The Store’s clerk shall perform monthly and quarterly stocktaking and document the closing balances in the Bin card or Ledger Book.
• The Restaurant Manager and the Chef or Head Cook shall confirm that the actual balances are in agreement with the amount in the Bin card or Ledger Book.
• The Store’s Clerk in liaison with the Procurement Officer and the Restaurant Manager shall do yearly stocktaking. Besides, they shall engage the accountants as well as the internal auditors in the whole process accordingly as of 30th June each year.
• The Restaurant Manager and the Store Clerk shall ensure all stock products are counted in the store.
• He or she and the Stores Clerk shall ensure that precise information is documented in terms of quantity, value, and the expiry day.
• The Restaurant Manager shall supervise the Store’s Clerk when reconciling the stock records in the Bin card or Ledger Book with the reported figures.
• In case of any variations, the Restaurant Manager shall carry out examinations to determine the reason for the Variation. Besides, he or she shall recommend all essential actions to the administration.

The Bottom-Line

At a fundamental level, inventory management involves tracking goods, components, and ingredients across suppliers. Besides, he tracks stock at hand production and sales to make sure products are used as resourcefully and successfully as possible. This can be as deeper as possible. However, at the end of the day, it all returns to your stock.

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