Intro

When you know the fundamentals of counting and deliveries, you can move on to understanding the more advanced knowledge behind waste, stock ideals, and how you can actively change poor patterns of waste in order to keep a well-running store. Therefore, this module should only be taught to the ones who know how to perform a count and a delivery.

Quick Summary

The Count & Stock Management module that you have already been taken through puts a focus on the following:

1) How to navigate and use Store Task
2) How to take a delivery
3) How to count
4) Recount

TEACH THE TEACHER

The training of the Advanced Stock Handling & Reporting cannot be initiated before the Prospect has given the Trainer a detailed description of the following key points that should have been covered as a part of the Count & Stock Management training earlier. The Prospect needs to explain what each sentence or word means.

• Explain/show how to use and navigate Store Task incl: Count, Order and Receive – as well as filling out a Delivery Reporting and a DOC Reporting Typeform in the correct and adequate way.

• Explain why structured deliveries are important.

• Explain the 3 important tasks when taking delivery as well as the sequence of taking delivery in the right order.

• Explain why correct counts are essential.

• Explain the ground principles of counting and why they are important.

• Explain the Rules of Counting.

• Explain the 5 different types of re-counts, what they mean and how to deal with them. The Prospect has to come up with an example for each type of mistake.

• Explain the “Count Overview Illustration”.

Waste Explained

Waste is defined as the amount of food costs we throw out every week. This has nothing to do with turnover, but only the goods which have been wasted or “overused” in the store.
We will start out with a simple example. Monday morning your whole stockroom consists of:

– 10 boxes of Apples
– 20 pieces Mighty Juice Cups
– 20 pieces Mighty Juice Lids
– 20 pieces Straws
– 5 whole Bananas
– 1 bag of Strawberries

Throughout the week you sell 20 mighty Pick Me Up, which requires one box of apples, 5 whole bananas, and a whole bag of strawberries according to the product manual. On Sunday you count 9 boxes of apples, then your waste percentage would be 0%. Because everything that was used throughout the week was used exactly as it should be according to the product manual you will end up with the most optimal use of stock as no over usage of any kind happened. All goods and items were utilized to perfection in order to sell the purchased products.

That example is unrealistic, but the knowledge is important. Obviously, we make many different products and have to handle a lot of both dry stock items, cooled and frozen goods. Waste is a complex aspect to understand, but it is actually simple to get under control. All stores would essentially have a 0% waste if the following aspects were in order:

1. Start the week out with a perfect count Sunday night (what is typed in on the count is the exact amount of ALL goods and items in stock).

2. The deliveries received in the week were as they should be (nothing missing, no goods moldy or broken, no extra goods received).

3. All sold products are being made 100% according to the product manual at all times (following IMS).

4. All employee meals are being typed in correctly on the POS. No one is consuming an extra topping that isn’t typed in.

5. No goods are being wasted because of expiration dates, moldiness, etc.

6. End the week with a perfect count Sunday night (What is typed in on the count is the exact amount of ALL goods).

7. That’s it – this is 0% Waste!

As explained, the above points are actually the only aspects that need to be under control.

• The moment the Bar Manager does not make sure all the delivered goods are aligned with the invoice and the Ordering on Store Task; the missing goods will be added to the waste percentage.

• The moment a Juicer doesn’t follow IMS and add a whole avocado in a club sandwich, the half avocado will be added to the waste percentage, and so on.

This said, we can NEVER compromise our sold products because we need to uphold the waste percentage, but we should always minimize the waste as much as possible. That is why a waste percentage from 0 – 3% is a good waste percentage. And also because we know that some goods can get mouldy even though proper fridge structures were in order.
The cost per ingredient is a good thing to have in mind when trying to keep a good waste. The cost between a yellow cup and one avocado is huge. That is why, making a glass of water for a thirsty guest is always okay, but handing out a whole avocado to a guest is not! If you want to uphold a good waste percentage, you should start focusing on the more expensive goods, since these will have a bigger impact on the waste percentage:

• Juice Station: Strawberry – Apple – Milkshake Milk – Cucumber – Avocado
• Sandwich Station: Chicken – Serrano – Turkey – Tuna – Avocado – Bread
  

Important Areas Affecting Your Waste

Store Tasks are the most essential areas affecting your waste. Once they are in order and you have become a master at count and deliveries, you should move on to looking at four other aspects affecting your waste:

Employee Meals: Every product consummated by the team should be typed in on the POS as an employee meal. Every time an employee product isn’t typed in, it will look like pure waste. If a Juicer who eats a sandwich doesn’t type it in on the POS, the cost of all ingredients + the bread will be added to the waste percentage as it is not registered in the system. When the team fails to register employee meals, you cannot rely on the key numbers creating negative figures.

IMS: Whenever IMS (Ingredients, Measurement, Sequence) is not followed, the over usage will seem like pure waste. Therefore, IMS has to be applied by everyone working in the store at all times!

Waste iPad: It is important to use the Waste feature as this is the tool for the Purchasing Manager to track why a store might have a high waste percentage. When typing in all wasted goods, you can affect your Product Usage numbers in the Waste Report made by HQ as it then will be tracked as Registered Waste instead of over-usage. Using the Waste feature does not affect your overall Waste Percentage / Rating, as the goods are still an actual waste, but it will help to understand and track the reason why the numbers look as they do.

Ideals: Your Purchasing Manager is responsible for setting up and updating your stock ideals. This means that all goods and items on your count is set up with an ideal for how much you need until the next delivery. If you have an ideal on 25 whole milk and you count 10 whole milk, you will automatically receive 15 whole milk the following delivery.

All your ideals for all goods are controlled by the Purchasing Manager, who makes the order for your next delivery. The Purchasing Manager changes these ideals regularly to order the most accurate amount of stock for you, week by week. Ideals are frequently raised or lowered during the different periods of the year. In winter, we are usually not as busy as in summertime. Therefore, summertime requires more goods and the Purchasing Manager will slowly increase to prepare for summertime. To create the best ideals for your store, the Purchasing Manager needs constant feedback from you. You work in the bar every day and can provide the Purchasing Manager with important information. Your bar might sell a lot of Signature Juices compared to the average and therefore, you need extra cucumber and kale. This information is crucial, as the Purchasing Manager won’t know unless you communicate it. Remember, that you get delivery twice a week: most often one that is determined by what is counted on Sunday, and one that is an automated delivery (the size of the delivery is the same week by week).

The Appropriate Time To Reflect On Ideals

The most appropriate time to reflect on your ideals is the afternoon the day before taking a delivery or the morning taking the delivery (before distributing the goods). At this moment you can check how much you have left of each good before new stock is coming.

• If you are very low on certain goods, perhaps you should increase ideals on the specific good.

• If you have a lot left of a specific good, perhaps you should decrease ideals for the specific good.

In the normal stock rotation, you should use your delivered goods 2-3 days after the delivery. If the delivered goods get used after 5-6 days, the ideals might be too high. On the other hand, if you use them the same day they were delivered, the ideals might be too low. We always want to keep a stock buffer for unseen events such as increased turnover, mistakes in deliveries, or delayed deliveries. In other words, the morning you receive the delivery, you should essentially have enough stock already to get through the day without using any of the delivered goods. When being overstocked, you should decrease ideals a bit at a time to avoid the risk of a sudden 0 stock of a certain good. It is fine to make more drastic changes when you are running out of specific goods.

Example with Banana, Kiwi, Chicken, Basil, and Apples for a residential store (not high turnover store):

Stock status the morning on the delivery day before distributing the delivered goods:

• 0 whole bananas
• 60 pieces kiwi
• 15 bags of chicken
• 1 bundle basil
• 3 boxes of apples

Appropriate ideal changes obviously depend on how busy the store is, but in this example, the following would be advised:

• Bananas: Increase ideal for bananas with 10 bags. Having no stock left is usually an eyeopener that the ideals should be increased unless the zero stock is caused by an unfortunate waste of lots of bananas.
• Kiwi: Decrease ideal with 30 pieces. 60 pieces are way too many.
• Chicken: Decrease ideal with 7 bags. Chicken is not the most serious good to have too much of as they are kept frozen and therefore don’t expire anytime soon. But it can still take up a lot of space in your freezer.
• Basil: Increase ideal with 6 bundles. 1 bag left is not a lot and a slightly busier week would cause trouble. Furthermore, basil is a key good as we cannot make pesto and sell sandwiches without it.
• Apples: Increase ideal with 7 boxes. Same situation as basil. Apples are key for our operation and running out can cause really bad turnover implications.

*Remember that each store normally has two sets of ideals. One for each delivery. Therefore, make sure to inform the Purchasing Manager which delivery of the week you would like ideals increased/decreased for in the future.

How To Change The Ideals

Contact your Regional Manager and explain which exact amount you would like ideals adjusted with and why this specific good needs to be increased/decreased, and also which delivery the ideals should be changed for. The ideal changes has to be requested to the Purchasing Manager before Friday 12.00 in order to be changed for the following week (unless another deadline is agreed with the local Purchasing Manager). You should as a Bar Manager look through your ideals making sure the current ones are up to date every 3-4th week, but you should reflect on them every week.

Re-count

You already know how to do a count, so now it is time to dig a bit deeper into the task re-count. After the count is completed and confirmed, the Purchasing Manager will give feedback to each store regarding which quality of count was done in each store. The count check is being done by looking at what goods came in the store (delivery) and what goods went out of the store (sold products, employee meals, wasted items) and then if it all matches compared to what was counted last week and the current week. This is why it is so crucial for us to use the platforms available to register the goods going out of the store, so in other words that we type in all employee meals and use the waste iPad when it will both affect the waste being reported by HQ and the view on the store’s status of stock from the Purchasing Manager’s point of view. The re-count is a tool made by the Purchasing Manager, to make sure that no mistakes will affect waste percentages in a negative way and to identify unnecessary mistakes.

Waste Cycle:

The Re-count is based on what came in the store (delivery) and what left the store (Employee Meals, Sales, Waste) considering that you had a stock count last Sunday which basically works as a starting point. The count last week is the groundwork for the current week’s count. What you should count this week should essentially be the same as last week subtracted all the goods and items used throughout the week for both employee meals and sales. This is why it is so crucial to type in everything that gets consumed, wasted, or sold as products, because if we don’t do this, then it will just disappear in the ‘system’ or be highlighted as a re-count mistake if the amount missing is significantly big. Remember, that the current count (Inventory Count B in the illustration) works as a starting point for next week’s count. This is the reason why it is so essential to do correct counts as it will take up to 2 weeks for any mistakes to be straightened out, which both will affect your re-counts and your waste percentage in a negative matter.
In the illustration beneath, the very first count you do in the store is Inventory Count A. According to what you count, you will get a delivery. Throughout the week you will use your stock for sales, employee meals, and a minor part that unfortunately will get wasted (hopefully not). When the week is done you will do Inventory Count B. According to what you count and what you have registered as sales, employee consumption, and waste, you will receive a Weekly Waste Report. Now you have started the cycle and your Inventory Count B will then be the starting point for the next week where you will receive a delivery (goods in), complete sales (goods out), and do a stock count on Sunday summing up the week’s work leading to a Weekly Waste Report – and so it continues.

Reporting / Team Communication

Once you have analyzed your Weekly Report containing a detailed overview of the waste percentage including specific areas of good and bad performance, it is crucial that you then provide your team with a report that clearly summarizes the focus points for the week.
In the weekly report, the Top Product Waste Effect from 1-5 will be provided. These are the goods that affect your waste the most in a negative way. Focusing on these goods could be appropriate focus points to incorporate in your update.

Examples of how you can actively change bad patterns of “Top Product Waste Effect”:
Over usage of Milk: Focus on the milk measure every time Juicers make a Latte.
Over usage of Strawberries: Focus on putting the correct amount of strawberries in Power Shakes and strawberry juices.
Over usage of Chicken: Make sure to add the correct amount of chicken in all sandwiches.
Over usage of Apples: Focus on the measurement of all juices, use spill cup regularly, clean centrifuge between every juice, deep clean the sieve every night the following week to make sure the sieve is clean.

You know your team and how they receive instructions the best. The most important thing is that you as a Bar Manager after communicating the report to your team, also follow up on the key points. Next time you are working, ask the Juicers if they know how to make perfect milk measure on each Latte. If they don’t know, then show them how to master it. Keep an eye on Juicers on the sandwich station and follow up if the right amount of chicken is being added. If not, then show the person how to place the chicken correctly with the right amount in a way that the sandwich still tastes good. All key points will only be changed if you actively – leading by example – also makes sure they have the right knowledge to change their behavior. Motivate the Juicers to become better in the way that works for them, whether it is through small competitions in having the most perfect measures on the Juice station or if it is through constant feedback and training being side by side with them.

Report Format

It doesn’t matter how you send your team the report (email, Facebook, etc..) as long as they receive and read it.
When doing the team reports, follow these guidelines:

• Keep it simple and easy to understand.
• Don’t try and fix all areas at the same time. Choose the most important key areas to focus on. You are looking for incremental change from week to week.
• Create small goals so you can inform the team if it gets better the following week.
• NEVER be too negative. Keep a good tone and give the instructions in a nice and inspiring way.
• Make sure to incorporate positive elements in order to give them a feeling of success as well.

Waste Ladder

Whenever your store is not performing on waste, you can as a Manager look into specific steps of the Waste Ladder in order to reach a waste percentage below 3% which essentially is every store’s goal:

• Step 1 – 4 are tasks that you as a Bar Manager only can perform by doing your main tasks well.
• Step 5 – 7 are tasks that you as a Bar Manager only can perform by teaching your team the correct behavior and following up.

1. Stock Count – The most essential step of them all. If you are not putting an effort into making proper and accurate counts, you cannot uphold a good waste, as the count creates the framework for the waste percentage.

2. Ideal Adjustment – Look into your Ideals and make sure they are accurate. Ask the Purchasing Manager or your Regional Manager if you are in doubt. You should never run out of any goods, but having too many goods can also be problematic if you will end up throwing some out (WASTE).

3. Delivery – If you do not follow up on the number of goods delivered to your store, missing goods can appear as pure waste. Make sure to have registered the correct amount of goods “going in” the store, using Store Task.

4. FIFO & Fridge Structure – A nice and tidy fridge structure is key to uphold good waste. Your team should never be in doubt about which good they should take first. Make it look clean, tidy, and easy to understand. If you have trouble fitting in all goods in the stockroom, contact your Regional Manager and look at your ideals in order to ease up the stockroom. Otherwise, your RM might be able to help with some inspiration to make it tidier.

5. IMS – Should be a constant training area for you as a Bar Manager. This step can only be fulfilled if you actively stand next to your Juicers and help them understand the different rules and tricks in order to follow IMS. Make sure to tell them why you are correcting them behind the bar.

6. Waste on the List – Should be easy to understand for everybody! Remember, that it is never bad to type in products on the waste feature, but it is always bad to forget it. Explain to all team members why it is important to use the Waste feature (to track goods), and simply just make sure your team uses it at all times.

7. Employee Consumption – Again, make sure to explain to your team the importance of typing in all products they consume on their Juicer ID. It is simply just pure waste when they do not. The product typed in on the Juicer ID will not count as waste, but the missing ingredients will do so if they do not type it in.

Training Week

The Training Schedule for Advanced Stock Handling consists of training areas that need to be fulfilled and reviewed. It is at all times the Trainer’s responsibility to make sure that all training areas have been ticked off before the end of the training period.

Training Schedule: BM-Prospect

The Advanced Stock handling training schedule is not divided into specific days, but rather consists of areas that can be done on optional days. The important thing is that the BM Prospect gets through all areas before the end of the training period!

TEACH THE TEACHER

The Trainer will have a seat with you and take you through all Store Task Deadlines.

The training of the Advanced Stock Handling & Reporting cannot be initiated before the Prospect has given the Trainer a detailed description of the following points:  

• Explain/show how to use and navigate Store Task incl: Count, Order, Receive as well as filling out a Delivery Reporting and a DOC Reporting Typeform in the correct and adequate way. • Explain why structured deliveries are important.

• Explain the 3 important tasks when taking delivery as well as the sequence of taking delivery in the right order.

• Explain why correct counts are essential.

• Explain the ground principles of counting and why they are important.

• Explain the 5 different types of re-counts, what they mean and how to deal with them. The Prospect has to come up with an example for each type of mistake.

• Explain the “Count Overview” illustration.

WASTE

The Trainer will sit down with you for 30 minutes to have a detailed talk about Waste:

• Explain to the trainer everything you know about Waste after studying the Advanced Stock Handling Module

• Include areas such as:

– How to reach a 0% waste
– Why an acceptable waste is between 0%
– 3%
– The cost of different goods
– Employee Meals
– IMS
– Waste iPad

The Trainer will add information to you when needed and correct any misunderstandings.

IDEALS

The trainer will explain to you about ideals incl:

• How they work
• How to reflect on them
• Concrete examples and edge cases
• How to change them

As a part of the training, you will have to change ideals for at least 5 different goods!

– Go through the status of stock with the Trainer and together choose 5 items that need its ideals increased or decreased.

RE-COUNT

Explain the Waste Cycle illustration. Also, explain to the Trainer how you can actively get fewer re-count items on your next count.

– In order to pass your training you will need to do at least one count with less than 17 counting mistakes, so you might as well just get that the first time. Otherwise, it can be a long training period.

A “shadow count” with the Trainer can be necessary in order to refresh the BM Prospect’s memory of doing a proper count. This will be decided by the Trainer.

WASTE LADDER

Explain the Waste Ladder and how you can actively choose to focus on one step at a time. Explain to the Trainer how you would focus on each step in order to improve waste percentage:

• Stock Count
• Ideal Adjustment
• Delivery
• FIFO & Fridge Structures
• IMS
• Waste on the List
• Employee Consumption

Now, choose in cooperation with the Trainer how you can actively focus on IMS and Waste on the List the following week. Go through all the ideas of how you can change bad patterns of behaviour from the Juicers.

TEAM REPORTING

An important area to master for a Bar Manager is reporting and communication with the team. Do Team Reporting post about the Weekly Report every week of the training.

– Follow the guidelines from the module

– Go through each update with the Trainer before sending out

– Follow up doing Leading By Example in the bar showing the Juicers how to change their behavior from bad to good

– The focus points you choose to improve in your team reporting update have to be improved the following week! Therefore, do everything you can in order to make that happen.

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