Bulk vs Lean Ordering: Which Ordering Style Is Right For Your Business?
As a bar or restaurant manager, it’s crucial to think about your ordering process. You need to consider various factors, such as your budget, the products you need, the number of products you have to order, and for how long your purchase will last. One of the most common dilemmas for bar managers is whether they should place big or small orders. To help you decide, we’ve elaborated on the key pros and considerations of each ordering style.
Distributors often give promotions and discounts when you place large orders. For example, if you order five cases of a specific drink, you might get the sixth case for free; or, they might take a few dollars off the next time you order. Also, distributor representatives like it best when establishments order in bulk. It’s because it helps their businesses and gives them commissions. This increases your chances of receiving giveaways and buyback opportunities.These deals can help you lower your beverage costs and increase your profits. But you should also take a closer look at the value of these discounts. Are they substantial and worth it? Will they benefit your establishment?
Less likely to run out of product
If you order in large amounts, you’ll consistently have enough inventory. This means that you can keep your customers satisfied because you always have what they want. In addition, ordering in bulk gives you a cushion of extra product. If theft, loss, and breakage happen, you have other bottles to replace them.
Ordering leanly will help you manage your finances better, especially if you have seasonal cash flow. You can be sure that you have enough capital for other important things, such as rent, payroll, taxes, and bills. You can also invest in other projects like additional training, marketing, and equipment.
Limits the risk of having too many products that don’t sell
Not every product on your shelf will become a huge hit. Some of them will fail to sell, and this is where ordering in lean becomes beneficial. It saves you from dealing with large amounts of sitting inventory.
Also, lean ordering is ideal for products that easily expire, such as ales and hard cider. When you have too many products, it can be hard to track their individual expiration dates.
Fewer products give you more free space. If you have a smaller establishment, this is ideal for you. You can use the extra space to accommodate more customers.
Decreases inventory time
Bar inventory is time-consuming, especially if you have a large sitting inventory to count. So the less product you have, the fewer bottles you have to count.
At the end of the day, the decision depends on your establishment’s needs and its current state. If you have a large enough budget and a bigger bar, then you might want to consider ordering in bulk. But if your cash flow is seasonal and you are still experimenting with your products, then lean ordering might work best for you. Beverage management tasks can be complex. To help you run your business, visit BevSight’s website now. We have many different tools that can make your tasks easier.
