A word of warning!
Food stock reporting
In-house Food stocktaking – A case study in saving costs
A recent case study came to light by a client who moved the responsibility of Food stocktaking in-house to potentially save costs. The immediate results produced a very steady 70% GP margin for a period of 12 months following the change to internal reporting….So what's not to like!….
However following our professional Stocktaker's review of the client's historical data, it was discovered that reported stock holding values had increased from an average value in the region of £30K to a whopping £130K! Thereby massaging the profit margin to maintain a respectable stock result.
An immediate stocktake was conducted by our experienced Stocktaker and confirmed an overstatement of stock holding had been creating a false GP% for the entire financial year, masking serious stock control issues and loss of profitability.
Now working with our specialist hospitality stocktaking team, the client is beginning to recoup the losses, reversing an expensive "cost saving" exercise as a result, proving that independent Stocktaking services conducted by our expert, knowledgeable and experienced team can be a much more cost-effective service.
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