4 Benefits of Suggested Ordering

Apr 21 2017

Cost of Goods Sold Restaurant Management Manage Your Business Inventory

Suggested Ordering is a tool that combines data from AP, Inventory, and Recipes to determine recommended ordering quantities. An On Hand amount is calculated, then that amount is subtracted from either a static or dynamic Par value, and compared to your delivery date to give you the quantity needed to order.

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Here are four key benefits of Suggested Ordering:

  1. On Hand Calculation – An on hand value is calculated for a given day by combining several values. The tool first looks at what was counted in the last inventory session, adds in what was purchased or has been ordered, then subtracts out what’s been sold or wasted.
  2. Dynamic Par – In addition to assigning static par values to items, Suggested Ordering also offers dynamic par calculation for a given day of the week by looking at historic theoretical usage.
  3. Predictive Ordering – By leveraging the historic theoretical usage, the tool will predict how much product is going to be utilized by your next delivery date. This leads to a suggested order amount.
  4. PO Generation – Once set up, Suggested Ordering will offer a ‘qty to order’ based on all the data feeding into it. This is then turned into a purchase order, which can be emailed to the vendor. In turn, this purchase order can then become an invoice, to be audited and updated once the order actually arrives.

Suggested Ordering helps minimize over/under ordering by leveraging data already set up in existing systems. With help determining what needs to be ordered, mistakes and guesswork can be reduced.

Jeremiah Anzelc

Jeremiah Anzelc

Jeremiah is a former chef and restaurant manager. He has been a valuable member of Ctuit’s Client Services department since 2011 as a restaurant industry adviser with an emphasis on implementing cost of goods sold practices to ensure efficiency and profitability.