Stored products represent money in terms of both

initial cost & the cost of replacing them if stolen, spoiled, or damaged because of incorrect storing. In many food service businesses, products are put in the storeroom and then removed when needed there is a lot more to an effective storage system than this.

Storing Control: General Procedures

The principles of effective storage systems for F & B products focuses on three primary concerns: Keeping products secure from theft Retaining product quality Providing information necessary for the financial accounting system

Inventory Control Policy

Every F & operation is unique therefore determining

the type of storage controls to put in place will vary. Some businesses focus only on storage controls for meats, seafood & alcohol, with less control over less expensive & theft-prone products

ABCD Inventory Classification System

This system categorises products based on perishability & cost per serving:
Category A items high perishability and cost per serving Category B items high in cost, low perishability Category C items low cost per serving, high perishability Category D items low perishability, low cost per serving

ABCD Inventory Classification System Activity

Spend a few minutes thinking about the types of food that would come under the following headings: Class A Class B Class C Class D

Why use the ABCD Inventory classification system?

Direct
For inventory purposes, food products are separated into two categories; Direct inexpensive, perishable products usually purchased several times per week for immediate use. Examples: fresh produce, baked goods, dairy products Direct items are NOT entered into any storage records, they are NOT considered part of the inventory control system Recordkeeping is concerned with receiving of these products; not storage of these products

Stores
These items are expensive, purchased less often than

directs. Examples include: meats, seafood, frozen & canned products, staples (flour, sugar, cereals etc) May be purchased weekly or monthly depending on usage rates, inventory levels, type of product

Security Concerns iin Storage Areas

Limited Access permit only authorised staff, keep areas

locked, in smaller operations involve management in receiving/issuing activities (presence of mgmt. reduces theft) Lockable Storage Areas storerooms, freezers, coolrooms should all be lockable; install lockable shelving within coolrooms Behind-the-Bar Storage keep minimal products as this space is less secure than central storage area, alcohol should be locked when bar is closed, lockable cabinets & rolldown screens are advisable to reduce theft

Security Concerns iin Storage Areas

Storeroom Key Control only those staff members who

need keys should have them, key locks/combinations should be changed routinely, all keys to remain at the property at all times locked in the managers office when not in use Coded cards similar to guest room access cards are increasingly popular in BOH areas

Maintaining Quality duriing Storage

Product rotation FIFO Controlled environment:

Dry stores at 10 21C Cool rooms at 1 4C Freezers at -18C Sanitation practices regular cleaning, pest control services Proper storage original packaging, allow air circulation, strong-smelling/absorbent foods stored separately, store in clean, labeled, covered containers

Inventory Turnover Rate

If too much money is being used to purchase excess

products for inventory, cash flow problems will occur creating many other problems for the organisation. Products may spoil & deteriorate due to too much stock in storage Highly perishable items (meats, seafood, fruits & vegetables) should turn over more quickly than less perishable items (spices, staples, frozen/canned products)

Physical / Perpetual Inventory System

Physical Inventory System the practice of physically

counting stored products on a periodic basis Perpetual Inventory System a running balance of the quantity of stored products is kept by recording all newly purchased items as they enter storage areas & all quantities issued from storage to production areas

Issuing Controls: General Procedures

A well-designed issuing system has the following aims: limit access to storage areas to authorised staff members only match items removed from storage with actual production needs assess quantities & costs of products removed from storage

Issuing Procedures
Use requisition forms
Assign issuing responsibilities to employees working

in storerooms at limited times only Limit issues to specific times (eg. breakfast items issued 6am 7am, lunch item issued 10am 1100am)

Summary
This week was the first part of two, discussing the

operational phase, which is the second function of management, along with quality control and certain HR aspects. Today we focused on purchasing, receiving and storage, and we discussed specifications as well as documentation and monitoring requirements. In regards to receiving products, we examined quantity and quality inspections and documentations, in order to learn about specific storage tasks, such as recording. Finally we discussed receiving and storage procedures within the operational

Recap
Describe the purchasing, receiving and storage phases

within the operational function Explain the documentation required within each phase List and explain the requirements within each phase, including-product related requirements, quality and quantity requirements (receiving) and records, pricing and stocktaking (storage)