How to Centralize Multi-Branch Stock & 10 Recommendations for the Best Stock Applications

Have you ever experienced a decrease in raw material stock at the central warehouse, but the destination outlet hasn't recorded the goods received? This situation can cause inventory reports to deviate from the actual situation.

The problem isn't always that the item is missing. It could be that the transfer wasn't recorded sequentially or the shipping status hasn't been updated. In the restaurant business with several branches,stock transfer between restaurant branches needs to be managed as a process that has control at every stage.

The quantity of goods leaving the sending branch must be matched with the quantity received by the destination branch. If there is a discrepancy, the cause must also be traced.

Imagine a central warehouse shipping raw materials to three outlets in one day. Without a clear record-keeping process, staff may have difficulty distinguishing between items being prepared, being shipped, or received.

As a result, stocks appear to be lost or suspended.To prevent these issues, restaurants need a streamlined workflow. Here are the steps and controls that can be implemented.

Why Stock Transfers Need to Be Treated as Two Events: Stock-Out and Stock-In

The first thing to understand is that stock transfer involves two separate records. First, goods leave the originating location (stock-out). Second, goods enter the destination location (stock-in).

The two shouldn't be considered a single event that ends immediately when the goods leave the warehouse. After all, goods that have left the warehouse don't necessarily have been received by the outlet.

For example, the central warehouse sends 20 kg of chicken fillets to Outlet A. When the goods are handed over to an internal courier, the central warehouse's stock decreases by 20 kg. However, Outlet A's stock only increases after the receiving staff checks and confirms the actual number of items received.

This separation is important so that inventory reports reflect actual conditions. As long as goods are still in transit, their status must remain recorded as stock in the transfer process orin-transit.

Therefore, stock transfer between restaurant brancheshave a clearer movement track. Management can also distinguish between stock still in the warehouse, being shipped, and already in outlet inventory.

Request to Receipt Stages: Create a Clear Status Workflow

Once you understand the two types of recording, the next step is to establish a consistent workflow. Every transfer should go through the same steps to ensure that staff across all branches have a standardized process.Workflow can be divided into the following six statuses.

• Request
  • Activity: the outlet submits a request for goods
  • Required control: item, quantity, and unit are recorded
• Approval
  • Activity: a supervisor or manager reviews the request
  • Required control: the need and stock availability are verified
• Picking
  • Activity: the warehouse prepares the goods
  • Required control: actual quantity and condition of the goods are checked
• Dispatch
  • Activity: the goods are handed over for delivery
  • Required control: the source stock is recorded as issued and proof of delivery is kept
• In-transit
  • Activity: the goods are on their way
  • Required control: delivery status and the person in charge (PIC) can be traced
• Receipt
  • Activity: the outlet receives and inspects the goods
  • Required control: the received quantity is confirmed and the destination stock is recorded as received

This sequence helps each party understand their responsibilities. Outlets don't have to guess whether a request has been processed. Warehouses also know what work remains to be done.

One thing to note is the statusreceiptIt's best to declare the transaction complete after a receipt inspection has been conducted. If the goods haven't arrived or there's a discrepancy, don't close the transfer immediately.

Read also:Get to Know Table Management Systems and Their Benefits for Restaurants

Data that must be recorded in each transfer

A neat-looking workflow isn't enough if the information within it is incomplete. Each transaction needs to have an identifier that can be used to track the movement of goods.

The first data item is the item name and quantity. Ensure the units are consistent, such as kilograms, liters, grams, or units. Avoid mixing units without clear conversion rules, as this can lead to discrepancies in the records.

Next, record the origin and destination locations. This information ensures that goods move from the correct warehouse or outlet to the branch where they are needed.

Each transfer must also have a designated person in charge. This can be the warehouse staff member who prepares the goods, the dispatcher, or the outlet staff member who receives them. The name of the person in charge helps management identify who handles each step.

Finally, include a timestamp or time stamp. At a minimum, record the time of the request, approval, release, and receipt. If there are delays or discrepancies, management can review when the problem began.

So, the recordingstock transfer between restaurant branchesIdeally, this shouldn't stop at just the quantity of goods. Transaction identity, location, person in charge, and time should also be available so that each transaction can be traced.

How to Handle Quantity Differences during Receipt

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One common problem is that the quantity received differs from the quantity shipped. For example, the warehouse might record a shipment of 20 kg of meat, but the outlet only received 19.5 kg.

In this situation, the receiving staff should not immediately record 20 kg as incoming stock. Double-check using appropriate measuring tools and ensure the units used match those on the shipping documents.

If discrepancies persist, record three key pieces of information: the amount sent, the amount received, and the difference. Include a description of the audit results and supporting evidence, if available.

After that, the transfer status can be marked as a discrepancy or pending investigation. Supervisors need to review records from the warehouse and shipping company before determining follow-up action.

For example, was there a weighing error during picking? Did the quantity of goods change during transit? Or was there an error during receiving?

With this procedure, outlet stock only increases according to the actual amount received. Any discrepancies remain recorded as issues that need to be resolved, rather than hidden through adjustments.

How to Handle Damaged or Lost Items During Transfer

In addition to quantity discrepancies, the condition of the goods also needs to be checked. Raw materials that arrive damaged, have leaking packaging, or are of reduced quality must be handled through special procedures.

Receiving staff should separate problematic items from usable inventory. Avoid mixing them directly with other inventory, as this could affect the quality of the materials used in production.

Document the condition of the goods through photos, the number of items affected, the time of receipt, and the officer's information. This information is then forwarded to the supervisor for review.

If an item is declared missing, reconcile the picking, dispatch, and receipt records. Also, verify who handled the item at each stage.

It's important to distinguish between lost, damaged, and rejected items due to substandard quality. Each requires different follow-up actions.

Damaged goods may need to be recorded as inventory loss, while rejected goods may require replacement or return according to company policy.

When Does a Transfer Require Approval?

Sumber: istockphoto

Not all transfers require multiple approvals. If every small request has to wait for multiple managers, the distribution process can actually slow down.However, there are certain conditions that should require approval.

For example, large quantity requests, transfers of high-value raw materials, deliveries outside of regular schedules, or requests that exceed the outlet's normal stock limits.

Approval is also crucial when central warehouse stock is approaching minimum levels. Managers need to ensure that deliveries to one branch don't impact the needs of other branches.

Establish authority limits from the outset. For example, routine transfers of a certain amount can be approved by the warehouse supervisor. Meanwhile, requests above the specified limit require approval from the operations manager.

This rule makes control more proportional. The process remains expeditious, but risky decisions remain under the oversight of authorities.

Read also:Understanding Food Pairing and Must-Try Inspirations

Example of Transferring 20 Kg of Material from Central Warehouse to Outlet

To make the flow more concrete, imagine a restaurant sending 20 kg of chicken fillets from the central warehouse to Outlet A. The following is an illustration of the recording at each stage.

In this example, the number of items going out and coming in is the same. This means the transaction can be closed without any discrepancy.However, if Outlet A only receives 19 kg, the record should show that there is a difference of 1 kg.

Stock entering the outlet follows the actual amount, while the remaining difference remains in inspection status.The transfer transaction number should also be used from start to finish.

This is the principle that makesstock transfer between restaurant branchesEasier to monitor. Management not only knows that goods have been moved, but also understands their journey and the final outcome of the transfer.

FAQs Regarding Inter-Branch Stock Transfers

1. Why should outgoing stock and incoming stock be recorded separately?

Because items that have left the warehouse may not have been received by the outlet, separating stock-out and stock-in helps show inventory positions more accurately.

2. What should I do if the quantity of goods received is different?

Double-check, record the actual amount, document any discrepancies, and then have a supervisor verify it. Don't immediately close the transfer before addressing the issue.

3. Who is responsible for the stock transfer process?

Responsibilities are divided according to stage. The warehouse handles preparation and dispensing, shipping personnel handle the movement of goods, and outlet staff are responsible for receiving inspections.

4. How to prevent hanging stock?

Use consistent transfer status, record the time and PIC of each stage, and create follow-up rules for shipments that have not been received or still have a difference.

Conclusion

Accurate inventory movements aren't just about ensuring goods arrive at their destination. Restaurants also need to know how much went out, who handled the shipment, when the goods were received, and whether the quantities are correct.

Because therefore, each process needs to have a clear status, from request to receipt. Stock-out and stock-in records must be separated, while discrepancies and damaged goods must be handled through inspection procedures.

With a structured workflow, stock transfer between restaurant branches makes tracking easier. The risk of stock hanging can also be reduced because each transfer has a record and a responsible person.

To support the operational and inventory management of your restaurant business, you can get to know ESB Core this solution can be part of an effort to build more integrated business management.

Learn more through ESB Core and discover how technology can help restaurants manage operations more effectively as their number of branches grows.