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Want Smooth Operations? Here’s Why Understanding Stock Buffer Is Key for Your Business!
Briantama Afiq Ashari
Have you ever imagined, when a crowd of customers comes, suddenly your stock of food runs out? In fact, moments like that are actually golden opportunities to increase sales.
Well, this is where it is important to understand the problem buffer stock is an important part of a solid business strategy.
If you don't understand this, don't worry. Come on, let's discuss it together so that your business runs smoothly!
What is Buffer Stock?
Before we chat further, it's really important to understand first, actually buffer stock is What?
Simply, buffer stock is reserve supplies that you prepare to face emergency situations.
For example, such as a sudden increase in demand or problems delivering goods from suppliers.
Well, just like that stock buffer, your business can still run smoothly, without panicking looking for additional items.
Of course, this stock buffer can be a lifesaver, especially for those of you who are in the culinary world.
Not only that, the concept buffer stock is part of modern, smart inventory management.
Without this reserve stock, your business risks losing customers because it runs out of goods. What a shame, right?
Why is Buffer Stock Important?
Source: Freepik
After knowing stock buffer is What, you must be wondering why so many big businesses are so serious about this?
The answer is because buffer stock makes businesses more prepared and resilient.
For example, you run a seafood restaurant. Suddenly bad weather caused fish supplies from fishermen to decline.
Naturally, a stock buffer is the solution, so you can still sell without disrupting daily operations.
Besides that, logistics buffer stock is a vital component in the distribution chain. In the world of logistics, the slightest disruption, such as truck delays or serious traffic jams, can disrupt distribution schedules.
Well, that's the reason why Logistics buffer stock is an important part of the SOP, so that the business continues without obstacles.
Differences in Buffer Stock in Various Industries
Interestingly, implementation of this stock buffer can vary in each industry. Come on, let's discuss it!
1. Logistics Stock Buffer
In the world of shipping and distribution of goods, logistics buffer stock is the ultimate savior.
For example, large logistics warehouses definitely have additional stock in case there are supply chain delays.
If you have a culinary business with several branches, the logistics buffer stock becomes mainstay, so that all outlets still have enough raw materials without waiting for new shipments.
2. Pharmacy Stock Buffer
In the health sector, pharmaceutical buffer stock is a weapon to fight the crisis.
Hospitals, pharmacies, even small clinics are required to have a reserve stock of important medicines.
For example, during the pandemic, when stocks of masks and sanitizers were scarce, those who had them pharmaceutical buffer stock are parties who can still serve the community well.
From here you can see, even though they are in different fields, the principles stock buffer remains the same, namely ensuring the business continues to survive in unexpected conditions.
Risks If You Don't Have Buffer Stock
Source: Freepik
So, now you can imagine the importance of having buffer stock, right? But to be more confident, let's look at some of the risks that could occur if you ignore it buffer stock:
- Lost Sales: Customers are lazy to wait, as soon as the goods run out, they immediately move to competitors.
- Operational Chaos: Your team will be busy looking for impromptu ways to find additional stock.
- Emergency Costs Soar: Ordering impromptu ingredients? Get ready to pay premium prices, not including fast shipping costs.
- Damaged Reputation: If customers are disappointed, the effects will be long-lasting. Your restaurant rating could drop drastically.
All of these problems can actually be prevented if you understand from the start how crucial they are stock buffer is part of operational strategy.
Read Also: Understanding CBD in the Culinary Business: Is it Suitable for Your Restaurant?
How to Determine the Ideal Buffer Stock
Having buffer stock is important, but adding stock without counting is also not good. Later it ends up piling up, expiring, and wasting money.
Therefore, you need to know how to determine the amount stock buffer. Here are the tips:
1. Calculate Lead Time
How long does it take on average for suppliers to deliver goods to you? The longer the lead time, the bigger the buffer you need.
2. Demand Fluctuation Analysis
Pay attention to customer spike patterns, for example during weekends or certain events.
3. Safety Stock Calculation
Use a simple formula based on average daily usage times estimated lead time.
4. Regular Updates
Do not forget, buffer stock is something that has to be flexible. You need to check and continuously update the data.
With this strategy, a stock buffer is possible so it's more controlled. No more drama of stock running out when it's busy.
Tips for Storing Buffer Stock So It Lasts
It's not enough to have spare stock, you also have to know how to store it so it lasts a long time. Let stock buffer is investment, not a burden, here are simple tips:
- Gunakan FIFO (First In First Out): Items that arrive first must be used first.
- Store in Appropriate Place: Make sure the temperature, humidity and cleanliness of the storage room are maintained.
- Label and Note Everything: All stock must be clearly labeled and neatly recorded. Don't let any idle items continue to get damaged.
- Diligently Check Quality: At least once a month check the condition of the goods in your buffer stock.
If you apply these steps, buffer stock is a strong shield to maintain the smooth operation of your restaurant or culinary business.
Example of Buffer Stock Application in the Culinary Business
To better understand, let's look at a real example of implementing a stock buffer in the culinary business. For example, a fast food fried chicken restaurant chain in Jakarta.
They are aware that every rainy season, delivery of chickens from suppliers takes longer due to flooding. Finally, they settled buffer stock by 20% above the usual daily requirement.
The result? During the rainy season, their business continues to run smoothly without running out of raw materials.
Another example, a coffee shop in Bandung always has one logistics buffer stock. At least the next 2 weeks make coffee and milk.
Why? Because they know that if there is a national holiday, suppliers usually close longer.
Practices like this make their businesses better prepared and away from sudden stress.
Conclusion
Now you understand why, right? Buffer stock is A mandatory strategy for all businesses, especially culinary businesses?
Starting from preventing stock outs, maintaining operations, to keeping customers happy, everything can be safer if you understand how to manage reserve stock.
Both in the culinary world, logistics, to pharmaceuticals, concepts stock buffer is something that cannot be taken lightly.
No matter how small your business is, you still need careful stock planning.
If you need a system that can help you manage stock more efficiently, don't hesitate to use ESB Core.
ESB Core is an ERP software solution specifically designed for the culinary industry.
Through ESB Core, you can also optimize stock and inventory management so that your buffer stock is always on-point.
Plus, there is integration with the system Order Management And Business Intelligence, so all data can be processed to make more accurate decisions.
For those of you who want your culinary business to be stronger, more efficient and anti-stock.
It's time to take your business to the next level, and it all can start with one small step: manage it buffer stock you right.
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