What is an Inventory System?
What is an inventory system? Inventory systems are a way of recording and managing the goods owned by a company. Inventory systems typically include a list of the items owned by a company. They may also include information about the location of the items, the cost of the items, and the selling price. Inventory systems can be used to track the cost of inventory, to keep track of how old a particular item is. Inventory systems are an important part of a company's operations.
Creating a Simple Restaurant Business Inventory System
What is a Restaurant Inventory System?

Thankfully, modern technology has solved a lot of these problems. Restaurant inventory systems are software that helps restaurateurs manage food inventory, such as the various expenses and reordering process. Restaurant owners use RIS's to monitor real-time stock levels so they can offer customers the menu items they want and still maintain profitability.
Restaurant inventory systems generate accurate and reliable data that removes the guesswork out of inventory-related decisions. With the right solution in place, owners can accurately predict future inventory, stay within a budget, and optimize the menu to meet customer demands. Employees are also happier because they have the tools in place to perform their jobs more efficiently.
Why is a Restaurant Inventory System Important?

Using a restaurant business inventory system is critical to controlling costs in your restaurant. A computerized system automatically updates each time a new customer order is keyed in. This means that all inventory levels are accurate in real-time. Restaurant owners know exactly what is going in and out of the restaurant. Furthermore, owners can see exactly who keyed in what, which helps hold employees accountable. If there is food theft or waste, managers know who is responsible and can use disciplinary measures to mitigate it in the future. It eliminates the guesswork from the equation.
Another benefit of an inventory management system functionality is the reporting features. Managers can use these data insights to drill down into bottlenecks and make better reordering decisions. Other functionality will prompt the system to automatically reorder items when they get to a certain level. This removes a lot of time-consuming, meticulous work away from overwhelmed employees and managers. It allows them to focus on more critical aspects of the job, such as marketing, upselling, and offering great service.
Customers are happier because they have access to the menu items they want at all times. This is a win-win for restaurants because happier customers tend to purchase more items. They also tend to tell their friends and evolve into return customers. A good inventory management system gives restaurants the competitive edge and stellar reputation they need in this digital age.
So, now that we know what an inventory management system is, you can learn how to use it to your benefit. You can also incoprorate some tips to optimize the Inventory Management process and eliminate errors. Read ahead to learn the top ways a computerized system and best practices can help you manage inventory more effectively.

The biggest challenge most restaurants face is keeping a close watch on the inventory of food and supplies.
The last thing you want to do is run out of something important.
1. Use Inventory System with a Few Manual Processes

The one problem is that a Restaurant Inventory solution does not account for the causes of inventory shortages. It will not tell you why there was spoilage of one ingredient or why there was a spill that led to a remake of an order. This is where you may need to use some manual processes to get a full picture of each situation.
Consider making a Spoil/Spill/Waste sheet for employees to sign. Each time there is an unfortunate accident or mistake, the responsible worker must write down what happened and why. This is not to punish workers or make them feel bad, but to identify problem areas and prevent them in the future. It will tell the full story, which most POS systems are not capable of doing.
2. Keep a Schedule

Managers must create a schedule to know exactly how many ingredients are used within each time frame. For example, you can count the most popular menu items each day and the non-perishable/least popular items a few days a week. Coupled with reporting features on a POS or inventory management system, you analyze and identify patterns. This will help to optimize the menu, prevent future accidents, and train employees more effectively. It will also minimize errors so you can make better business decisions and achieve Business Growth.
3. Use the FIFO Method
The FIFO method is easier if you organize all kitchen and storage areas in a specific way. Put the items you are going to use first in the front so employees reach for them automatically. When it's time to use other items, move them towards the front (if they aren't already moved automatically). You can also use specific containers and dispensers that providers make for those following the first in first out method. Research various providers online to find the best containers that fit your budget.

Managing inventory is one of the biggest pain points for any restaurant. You need to keep track of your supplies, but it can be really hard to do that if you don’t have a system in place.
You want to make sure that you don’t run out of anything, but at the same time you don’t want to overstock and waste money on unnecessary inventory.
4. Don't Toss Surplus Ingredients

Potential solutions may include adjusting the menu for a week or so, creating a special, or offering a buy-one-get-one promotion. Let customers know there will be a temporary adjustment to the menu for a short time. While this may be time-consuming, it will prevent a lot of unnecessary food waste and will save money. Most customers will be just fine with the changes, and may even enjoy the spontaneity.
5. Use Inventory System Data to Optimize Reordering

Your inventory system or POS will collect a lot of valuable data that you can put to good use. Some inventory software even incorporate predictive analytics tools that use historical data to make future inventory predictions. Other management systems will automatically reorder certain items when they get a specific level. Even if you don't use a cloud based computerized system, you can still optimize inventory control using historical data. Simply review which ingredients were eaten frequently in the past and make better purchasing decisions moving forward.

Keeping track of inventory is a huge challenge for most restaurants.
Inventory is one of the most important aspects of your restaurant business.