Thursday, July 27, 2006

Purchasing and Inventory: The First Step to Standardizing Your Food Rotation Labeling System

This is part one of a series showing readers the cost effectiveness of using a comprehensive food rotation labeling system in their kitchen. Here we discuss the importance of labeling for the purchasing and inventory functions.

Food service is a highly competitive industry that is often plagued with heavy turnover and high operating expenses. Many owners have found that one of the best ways to control costs, and still make a profit, is to establish a food rotation labeling system to curb the rising price of food. By standardizing your labeling system, you reduce food waste and over-purchasing.

That is why a food labeling system should be in place at all levels of food preparation – including the purchasing and inventory levels.

Goods should not be purchased until inventory levels reach a predetermined safety stock level. A safety stock level is the minimum amount of inventory needed in order to meet customer demands without having to order more supplies. This ensures there will be ample inventory to fill customers’ orders while preventing over-purchasing.

By looking at your current inventory, you can determine the amount you have on hand and the amount you need to build to, or the amount you want to have in stock before making another purchase. A good rule of thumb in any ordering procedure is to add an additional 25 percent to your order to cover unexpected usage, a late delivery, or backorder.

Food rotation is an essential element in the inventory process because improperly rotated goods can cause newer shipments to be used before older ones, which leads to increased waste and product spoilage.

With the proper labeling system, you can standardize your food rotation procedures to ensure your products are used according to the first in, first out (FIFO) inventory management system. Labeling products with the date received will help in the identification of foods that are still within their usage window and those which are not useable.

To help you with your labeling system, DayMark offers a wide variety of labels that make food rotation easier.

For example, many restaurants are using DayMark’s Removable Day-Of-The-Week? and Use-First® labels to help with their food rotation system because they are easy to remove yet adhere to both metal and plastic containers, even in extreme temperatures.

Call 1-800-847-0101 and ask a customer service representative to help you select the best food rotation labeling system for your business.

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