Interoperable Inventory Order and Tracking Procedures Manual for Kimo’s Coffee Shack, Holuakoa Restaurant and Garden, and Kimo’s Lunch Wagon
Introduction
This manual provides the guidelines and instructions on how to order and track the inventory of ingredients, dishes, drinks, utensils, plates, glasses, napkins, tablecloths, candles, flowers, decorations, and other supplies for Kimo’s Coffee Shack, Holuakoa Restaurant and Garden, and Kimo’s Lunch Wagon. These three businesses are adjacent to each other in Holualoa on the Big Island Hawaii and share some common products and suppliers.
The purpose of this manual is to ensure the efficiency, accuracy, and consistency of the inventory order and tracking processes across the three businesses. This will help to avoid overstocking, understocking, wastage, spoilage, theft, or loss of products and supplies. This will also help to optimize the cost, quality, and availability of the products and supplies.
The manual is divided into four sections: inventory order procedures, inventory tracking procedures, inventory management software, and inventory audit procedures. Each section provides the steps and details on how to perform the tasks related to inventory order and tracking.
Please read this manual carefully and follow the procedures every time you order or track the inventory for any of the three businesses. If you have any questions or concerns, please contact your supervisor or manager.
Inventory Order Procedures
The inventory order procedures describe how to place orders for the products and supplies that are needed for each of the three businesses. The procedures also describe how to receive, inspect, store, and record the orders.
Placing Orders
• Check the inventory levels of the products and supplies that are needed for each of the three businesses. Use the inventory management software (see section 3) to access the current inventory data and reports.
• Compare the inventory levels with the minimum and maximum stock levels that are set for each product and supply. Use the inventory management software (see section 3) to access the stock level data and reports.
• Identify the products and supplies that need to be ordered based on their inventory levels and stock levels. Use the reorder point formula to calculate the optimal quantity to order for each product and supply. The reorder point formula is:
Reorder point = (average daily usage x lead time) + safety stock
where:
• average daily usage = the average number of units of a product or supply that are used or sold per day
• lead time = the average number of days it takes for an order to be delivered by a supplier
• safety stock = the extra amount of a product or supply that is kept in case of unexpected demand or delays in delivery
• Create a purchase order for each supplier that provides the products and supplies that need to be ordered. Use the purchase order template that is provided by the inventory management software (see section 3) to create the purchase order. The purchase order should include:
• The name, address, phone number, email address, and contact person of the supplier
• The name, address, phone number, email address, and contact person of the business that is placing the order
• The date of the order
• The expected delivery date
• The purchase order number
• The list of products and supplies that are ordered with their names, codes, descriptions, quantities, units of measure, prices, discounts, taxes, shipping costs, and total costs
• The payment terms and methods
• The delivery terms and methods
• The signature of the authorized person who is placing the order
• Send the purchase order to each supplier by email or fax. Use the contact information that is provided by the supplier. Confirm that the supplier has received and accepted the purchase order.
Receiving Orders
• Receive the orders from each supplier when they are delivered. Check that the delivery date matches with the expected delivery date that is stated in the purchase order.
• Inspect each order for any damages, defects, errors, or discrepancies. Compare the products and supplies that are delivered with the products and supplies that are ordered. Use the purchase order and the packing slip that are provided by the supplier to verify the names, codes, descriptions, quantities, units of measure, prices, discounts, taxes, shipping costs, and total costs of the products and supplies.
• Report any damages, defects, errors, or discrepancies to the supplier immediately. Request a replacement, refund, or credit for the products and supplies that are damaged, defective, erroneous, or discrepant. Keep a record of the communication and the resolution with the supplier.
• Sign the delivery receipt that is provided by the supplier. Keep a copy of the delivery receipt for your records.
Storing Orders
• Store the products and supplies that are received in their designated places. Follow the storage guidelines and instructions that are provided by the supplier or the manufacturer for each product and supply. These guidelines and instructions may include:
• The temperature, humidity, light, and ventilation conditions that are required for storing the product or supply
• The shelf life or expiration date of the product or supply
• The proper handling and safety precautions that are required for storing the product or supply
• Arrange the products and supplies in an organized and accessible way. Follow the first-in first-out (FIFO) principle to ensure that the oldest products and supplies are used or sold first. Use labels, tags, or stickers to mark the names, codes, descriptions, quantities, units of measure, prices, dates of receipt, and dates of expiration of the products and supplies.
Recording Orders
• Record the products and supplies that are received in the inventory management software (see section 3). Update the inventory data and reports with the names, codes, descriptions, quantities, units of measure, prices, discounts, taxes, shipping costs, total costs, dates of receipt, and dates of expiration of the products and supplies.
• Record the purchase orders and the delivery receipts in the inventory management software (see section 3). Update the purchase order data and reports with the purchase order number, date of order, expected delivery date, actual delivery date, status of order (received or pending), and any damages, defects, errors, or discrepancies that are reported and resolved with the supplier.
Inventory Tracking Procedures
The inventory tracking procedures describe how to monitor and control the inventory levels and movements of the products and supplies that are needed for each of the three businesses. The procedures also describe how to report and resolve any inventory issues or discrepancies.
Monitoring Inventory Levels
• Monitor the inventory levels of the products and supplies that are needed for each of the three businesses. Use the inventory management software (see section 3) to access the current inventory data and reports.
• Compare the inventory levels with the minimum and maximum stock levels that are set for each product and supply. Use the inventory management software (see section 3) to access the stock level data and reports.
• Identify any products and supplies that are overstocked, understocked, or out of stock based on their inventory levels and stock levels. Use the inventory management software (see section 3) to generate alerts or notifications for these products and supplies.
• Report any overstocked, understocked, or out of stock products and supplies to your supervisor or manager. Follow their instructions on how to adjust the inventory levels or place orders for these products and supplies.
Controlling Inventory Movements
• Control the inventory movements of the products and supplies that are used or sold for each of the three businesses. Use the inventory management software (see section 3) to record the transactions and transfers of these products and supplies.
• Record every transaction or transfer of a product or supply with its name, code, description, quantity, unit of measure, price, date, time, source, destination, and reason. Use the transaction or transfer template that is provided by the inventory management software (see section 3) to record the transaction or transfer.
• Record every transaction or transfer of a product or supply as soon as it occurs. Do not delay or postpone recording the transaction or transfer. This will ensure the accuracy and timeliness of the inventory data and reports.
• Record every transaction or transfer of a product or supply accurately and completely. Do not omit or falsify any information about the transaction or transfer. This will ensure the reliability and integrity of the inventory data and reports.
Reporting Inventory Issues
• Report any inventory issues or discrepancies that are detected or encountered for any of the three businesses. These issues or discrepancies may include:
• Damaged, defective, erroneous, or discrepant products or supplies that are received from suppliers
• Spoiled, expired, contaminated, or stolen products or supplies that are found in storage
• Missing, misplaced, mislabeled, or miscounted products or supplies that are found in storage
• Returned, refunded, exchanged, or discounted products or supplies that are sold to customers
• Lost, damaged, broken, or malfunctioning equipment that is used for storing, handling, or preparing the products or supplies
• Errors, delays, interruptions, or failures in the inventory management software that affect the access or update of the inventory data and reports
• Report any inventory issues or discrepancies to your supervisor or manager as soon as possible. Provide them with all the relevant information about the issue or discrepancy such as:
• The name, code, description, quantity, unit of measure, price, date, time, source, destination, and reason of the product or supply that is involved in the issue or discrepancy
• The type, cause, effect, and extent of the issue or discrepancy
• The evidence, proof, or documentation of the issue or discrepancy such as photos, receipts, invoices, contracts, or forms
• The actions, solutions, or recommendations that are taken or proposed to resolve the issue or discrepancy
• Follow the instructions of your supervisor or manager on how to resolve the issue or discrepancy. Keep a record of the communication and the resolution with your supervisor or manager.
Inventory Management Software
The inventory management software is a web-based application that is provided by the inventory management service provider. The software allows the users to access and update the inventory data and reports for each of the three businesses. The software also provides various features and functions that facilitate the inventory order and tracking processes.
Accessing the Software
• Access the software by using a computer, tablet, or smartphone that has an internet connection and a web browser.
• Enter the web address or URL of the software that is provided by the inventory management service provider. The web address or URL is:
https://www.inventorymanagementserviceprovider.com/
• Enter the username and password that are provided by the inventory management service provider. The username and password are:
Username: kimoscoffee Password: kimoscoffee123
• Click on the login button to access the software. You will see the dashboard or homepage of the software that shows the overview of the inventory data and reports for each of the three businesses.
Updating the Software
• Update the software by using a computer, tablet, or smartphone that has an internet connection and a web browser.
• Access the software by following the steps in section 3.1.
• Navigate to the section or page of the software that contains the inventory data or report that you want to update. You can use the menu bar, search bar, or navigation buttons to navigate to the section or page of the software.
• Edit, add, delete, or modify the inventory data or report as needed. You can use the forms, templates, tools, or buttons to edit, add, delete, or modify the inventory data or report.
• Save your changes by clicking on the save button. You will see a confirmation message that shows that your changes have been saved successfully.
Inventory Audit Procedures
The inventory audit procedures describe how to conduct periodic audits of the inventory records and physical counts of the products and supplies for each of the three businesses. The procedures also describe how to report and resolve any inventory discrepancies or variances.
Conducting Audits
• Conduct audits of the inventory records and physical counts of the products and supplies for each of the three businesses at least once every quarter. You can also conduct audits more frequently if needed or requested by your supervisor or manager.
• Use the inventory management software (see section 3) to access the inventory records and reports for each of the three businesses. Print or download the inventory records and reports that you need for the audit.
• Use the inventory audit checklist that is provided by the inventory management software (see section 3) to guide you through the audit process. The inventory audit checklist should include:
• The name, code, description, quantity, unit of measure, price, date of receipt, and date of expiration of each product and supply that is audited
• The location, condition, and status of each product and supply that is audited
• The method, frequency, and accuracy of recording and tracking each product and supply that is audited
• The discrepancies or variances between the inventory records and physical counts of each product and supply that is audited
• The causes, effects, and solutions of the discrepancies or variances of each product and supply that is audited
• Perform a physical count of each product and supply that is audited. Use a scale, tape measure, scanner, or other tools to measure or count the quantity of each product and supply. Record the physical count on the inventory audit checklist.
• Compare the physical count with the inventory record of each product and supply that is audited. Use a calculator, spreadsheet, or other tools to calculate or compare the quantity of each product and supply. Record the discrepancy or variance on the inventory audit checklist.
• Identify the cause and effect of the discrepancy or variance of each product and supply that is audited. Use your knowledge, experience, observation, or investigation to determine or explain the reason or consequence of the discrepancy or variance. Record the cause and effect on the inventory audit checklist.
• Propose a solution for the discrepancy or variance of each product and supply that is audited. Use your judgment, creativity, logic, or research to suggest or recommend a way to resolve or prevent the discrepancy or variance. Record the solution on the inventory audit checklist.
Reporting Audits
• Report the results of the audits to your supervisor or manager as soon as possible. Provide them with the inventory audit checklists that show the inventory records, physical counts, discrepancies, variances, causes, effects, and solutions of the products and supplies that are audited.
• Follow the instructions of your supervisor or manager on how to implement or execute the solutions for the discrepancies or variances. Keep a record of the communication and the implementation with your supervisor or manager.
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