SITXINVO001 Receive and store stock | My Assignment Tutor

SIT40516 CERTIFICATE IV INCOMMERCIAL COOKERYCRICOS COURSE CODE:0100891SALISBURY COLLEGE AUSTRALIALearner Guide SITXINVO001 Receive and storestockPage | 1Page | 2Table of ContentsTable of Contents…………………………………………………………………………………………………………………… 2UNIT Introduction ………………………………………………………………………………………………………………….. 3About This Resource ………………………………………………………………………………………………………………. 3About Assessment …………………………………………………………………………………………………………………. 4Elements and Performance Criteria………………………………………………………………………………………….. 6Required Skills and Knowledge ………………………………………………………. Error! Bookmark not defined.Performance Evidence ……………………………………………………………………………………………………………. 7Knowledge Evidence ………………………………………………………………………………………………………………. 7Evidence Guide ……………………………………………………………………………. Error! Bookmark not defined.pre-Requisites ……………………………………………………………………………………………………………………… 10Topic 1 – elements……………………………………………………………………………………………………………….. 11Performance criteria…………………………………………………………………….. Error! Bookmark not defined.Minor headings …………………………………………………………………….. Error! Bookmark not defined.summary …………………………………………………………………………………….. Error! Bookmark not defined.References ………………………………………………………………………………….. Error! Bookmark not defined.Websites………………………………………………………………………………. Error! Bookmark not defined.Images…………………………………………………………………………………. Error! Bookmark not defined.Page | 3UNIT IntroductionThis resource covers the unit SITXINV001 – Receive and store stock.This unit describes the performance outcomes, skills and knowledge required to check and takedelivery of stock and appropriately store, rotate and maintain the quality of stock items.It does not include specialist stock control processes for perishable foodstuffs which are covered bySITXINV002 Maintain the quality of perishable items.The unit is relevant to organisations where stock control is an integral and essential part of businessoperations, and where there are control issues to be considered. The unit is not appropriate forsituations where stock management is very simple, such as controlling stationery supplies in a smalloffice.It applies to operational personnel who work with very little independence and under closesupervision. They apply little discretion and judgement and follow predefined organisationalprocedures to report any stock-related discrepancies to a higher level staff member for action.The unit applies to all tourism, travel, hospitality and event sectors and to any type of stock.No occupational licensing, certification or specific legislative requirements apply to this unit at thetime of publication.About This ResourceThis resource brings together information to develop your knowledge about this unit. Theinformation is designed to reflect the requirements of the unit and uses headings to makes it easierto follow.You should read through this resource to develop your knowledge in preparation for yourassessment. At the back of the resource are a list of references you may find useful to review.As a student it is important to extend your learning and to search out textbooks, internet sites, talkto people at work and read newspaper articles and journals which can provide additional learningmaterial.Page | 4Your trainer may include additional information and provide activities, PowerPoint slidepresentations, and assessments in class to support your learning.About AssessmentThroughout your training we are committed to your learning by providing a training and assessmentframework that ensures the knowledge gained through training is translated into practical on the jobimprovements.You are going to be assessed for:• Your performance and knowledge using written and practical activities that applyto a workplace environment.• Your ability to apply your learning to the workplace.• Your ability to recognise common principles and actively use these on the job.You will receive an overall result of Competent or Not Yet Competent for the assessment of this unit.The assessment is a competency based assessment, which has no pass or fail. You are eithercompetent or not yet competent. Not Yet Competent means that you still are in the process ofunderstanding and acquiring the skills and knowledge required to be marked competent.The assessment process is made up of a number of assessment methods. You are required toachieve a satisfactory result in each of these to be deemed competent overall.All of your assessment and training is provided as a positive learning tool. Your trainer/assessor willguide your learning and provide feedback on your responses to the assessment. For valid andreliable assessment of this unit, a range of assessment methods will be used to assess practical skillsand knowledge.Your assessment may be conducted through a combination of the following methods:• Written Activity• Case Study• Observation• Practical tasks• Short answer questions• Third Party ReportPage | 5The assessment tool for this unit should be completed within the specified time period following thedelivery of the unit. If you feel you are not yet ready for assessment, discuss this with yourtrainer/assessor.To be successful in this unit, you will need to relate your learning to your workplace. You may berequired to demonstrate your skills and be observed by your assessor in your workplaceenvironment. Some units provide for a simulated work environment, and your trainer and assessorwill outline the requirements in these instances.Page | 6Elements and Performance Criteria 1. Take delivery of stock1.1 Check incoming stock against orders and delivery documentation1.2 Identify, record and report discrepancies1.3 Inspect items for damage, quality and use-by dates and recordfindings according to organisational procedures1.4 Record details of incoming stock according to organisationalprocedures2. Store stock2.1 Promptly transport stock to, and store in, appropriate storagearea2.2 Use safe manual handling techniques to avoid injury whenmoving and storing stock2.3 Label stock according to organisational procedures2.4 Report on excess stock according to organisational procedures3. Rotate and maintain stock3.1 Rotate stock for maximum use and minimum wastage3.2 Regularly check the quality of stock and report findings3.3 Safely dispose of all excess or spoilt stock and waste, especiallyhazardous substances, to minimise negative environmental impacts3.4 Maintain cleanliness of stock handling and storage areas, andidentify and report problems3.5 Use stock control systems and equipment according toorganisational speed and accuracy requirements Page | 7Performance and knowledge evidenceThis describes the essential knowledge and skills and their level required for this unit.Performance EvidenceEvidence of the ability to complete tasks outlined in elements and performance criteria of this unit inthe context of the job role, and:• Receive, store and maintain six different stock deliveries• Correctly interpret stock orders and delivery documentation for items received inthe above deliveries• Complete stock documentation relating to each of the above stock deliveries• Integrate into the above work activities:o Security procedureso Manual handling techniqueso Commercial time constraints.Knowledge EvidenceDemonstrated knowledge required to complete the tasks outlined in elements and performancecriteria of this unit:• Principles of stock control:o Rotation and replenishmento Product life cycle and maximising the use of all stocko Checking for slow moving itemso Segregation of non-food items from food items that have potential tocross-contaminate• Stock control systems:o Bin card systemo Imprest systemPage | 8o Integrated point-of-sale systemo Ledger system• Stock control procedures and template documents and reports for:o Orderingo Levelso Losso Performanceo Monitoring of qualityo Receipto Reorder cycleso Rotationo Securityo Stocktakeso Valuationo Wastage• Storage requirements for different kinds of stock• Use of stock control equipment and software where appropriate• Specific industry sector, types of:o Computerised stock control systems; their functions and featureso Electronic equipment used for stock control; their functions and featureso Stock recording documentationo Stock security systemso Storage and their suitability for different kinds of stock• Specific organisation:o Relevant stockPage | 9o Product life and storage requirements for specific goodso Procedures for security, recording incoming stock, reporting ondiscrepancies, deficiencies, and excess stocko Order and delivery documentation• Safe manual handling techniques for the receipt, transportation and storage ofstock• Safe and correct use of equipment• Correct and environmentally sound disposal methods for all types of waste and inparticular for hazardous substances.Page | 10Assessment ConditionsSkills must be demonstrated in an operational business where stock is received and stored. This canbe:• An industry workplace• A simulated industry environment.Assessment must ensure access to:• Computers, printers and stock control software systems• Electronic equipment used for stock control• Diverse and comprehensive range of tourism, hospitality or event industry stockitems• Organisation specifications:o Current commercial stock recording procedures and documentation forthe receipt and storage of stock.Assessors must satisfy the Standards for Registered Training Organisations’ requirements forassessors.pre-RequisitesThis unit must be assessed after the following pre-requisite unit:There are no pre-requisites for this unit.Page | 11Topic 1 – Take delivery of stockWelcome to the unit SITXINV001 – Receive and store stock.This unit describes the performance outcomes, skills and knowledge required to check and takedelivery of stock and appropriately store, rotate and maintain the quality of stock items.It does not include specialist stock control processes for perishable foodstuffs which are covered bySITXINV002 Maintain the quality of perishable items.The unit is relevant to organisations where stock control is an integral and essential part of businessoperations, and where there are control issues to be considered. The unit is not appropriate forsituations where stock management is very simple, such as controlling stationery supplies in a smalloffice.It applies to operational personnel who work with very little independence and under closesupervision. They apply little discretion and judgement and follow predefined organisationalprocedures to report any stock-related discrepancies to a higher level staff member for action.The unit applies to all tourism, travel, hospitality and event sectors and to any type of stock.No occupational licensing, certification or specific legislative requirements apply to this unit at thetime of publication.In this unit you will learn how to:• Take delivery of stock• Store stock• Rotate and maintain stockLet’s begin!Check incoming stock against orders and delivery documentationA business owner’s two most important assets are stock and employees. As such, both of theseassets must be protected. By developing a system to be used for the receipt and dispatch of stock, asupervisor can ensure the safe protection of stock as well as provide support for their staff.Page | 12All businesses have procedures that need to be followed to ensure stock is moved in and outefficiently, safely and correctly. The hospitality industry is very broad, meaning policies andprocedures will vary depending upon the type of business and goods for sale.Why is stock control important?Stock is one of the single largest assets that a hospitality/retail business owner owns. As a result, thecontrol of that stock is fundamental.As well as profitability, stock control also assists the business owner in many areas of their businessallowing them to:• Monitor current required stock levels• Assess the performance of products• Monitor shrinkage i.e.: theft, damage and shelf life• Maintain stock condition• Monitor customer preferences• Maintain stock securityPage | 13Who is responsible for the receipt and dispatch of goods?It is the responsibility of the supervisor to ensure that the staff have been trained in the correctprocedures for handling stock, and they understand how to access and apply them.When delegating responsibility, you need to ascertain:• The functions or tasks that are necessary for the efficient running of the receiptand dispatch area• Which staff members have experience in the tasks to be performed?• What level of responsibility is required?• Staff availabilityThe types of stock that the business may take delivery of include:• Equipment and tools• Office supplies and stationery• Linen• Food and beverage suppliesAn important part of receiving deliveries of goods is checking the stock that is received against orderforms and delivery documentation. What this involves is you reading through the order form andchecking to see if everything that was ordered is in the delivery.Receipt of stockThe procedures and documents for receipt duties may require:• Times that deliveries are expected• Names of suppliers who are expected to be making deliveries• Details of deliveries• Special delivery requirements that were placed with the supplier• The location the delivery should be made to• Returns to be madePage | 14• A copy of the purchase order• Instructions as to what to do if:o The delivery does not arriveo The delivery is lateo The delivery does not bring the items ordered/expectedo The wrong items are sent• Instructions as to what internal, or other, paperwork must be completed• Instructions as to the storage of items deliveredDispatching stock dutiesThe details for dispatch duties include:• Times that deliveries outwards were promised to customers/clients, or times thatcustomers are calling in to pick their goods up• Names of persons who are coming to pick up goods, or to whom deliveries are tobe made• Addresses of delivery points, including the name and phone number of a contactperson where problems arise• Details of deliveries to be made, or stock to be collected• Special delivery requirements that have been requested• Details of any payment that has to be made• Details of proof of delivery/pick-up to be obtained• Copy of any relevant internal documentation• Instructions as to what to do if:o The delivery cannot be madeo The person does not call in to pick up their goodso The person does not have the necessary paperwork to support their claimto the goods/deliveryPage | 15• Instructions as to what internal, or other, paperwork must be completedPage | 16Identify, record and report discrepanciesImplementing store goods proceduresTo ensure accuracy in the receipt of goods to your store, it is necessary to have systems in place thatallow you to exert and maintain a constant level of control over deliveries.The store policy and procedures will cover general areas such as:• Receipt security• Procedures for checking and processing paperwork• How to complete returns to vendors• Completing transfers to other stores• Accepting deliveries• Storage and handling of stockStaff must follow the stores policies and procedures for the handling of goods. These will includeguidelines for:• Stock receival and storage• Stock control• Pricing, labelling, and packaging• Recording• Investigating discrepancies• Quality controlReceive goods‘Receipt of goods’ refers to the processes a business follows when taking delivery of goods. It iscrucial that the staff are aware of the processes used.Problems can arise if the steps taken to handle deliveries are not understood properly. For example,the wrong goods may be delivered, which is a problem for the business as it means that the tasksthat were requiring those goods will be delayed.Page | 17A good example procedure to follow for the receipt of goods may look like the following:• Maintain a clean and orderly area to receive goods• Sign delivery docket• Check goods have been delivered to the correct store• Check goods are correct• Check quantity is correct• Check prices are correct• Check condition of goods• Accept or reject deliveryReporting discrepancies and deficienciesRegardless of the procedure used, anyone who is checking over a received delivery will be lookingfor any discrepancies in the delivery. These problems may come in the form of:• Incorrect products or quantity of products delivered• Goods not on the order form• Damaged or low quality goods and packaging• Missing goodsIf there are any problems with the delivery, it is important that they are recorded and reported tothe appropriate personnel, usually a supervisor. Depending on the circumstances and the severity ofthe discrepancy, the delivery may need to be rejected, and the problem goods returned to thesupplier for refund, replacement, or credit off of the next order.Inspect items for damage, quality and use-by dates and recordfindings according to organisational proceduresMonitoring of qualityAll deliveries into your business must be inspected to ensure the items are acceptable and checkedagainst purchase orders and supply agreements, in all necessary details.This check is done when the goods are delivered and before you sign for them. The checks should bedone as soon as possible and any discrepancies notified to the suppliers as soon as possible.Page | 18Most suppliers appear happy with this arrangement as the last thing they want is for their deliverydrivers to be tied up while you finish checking two or three orders that are in front of other orders.In some cases, you can sign for the delivery and add the letters “STC” (Subject to Check), indicatingthat you have received the delivery but haven’t yet checked it for accuracy.This is another example of what can often be the informal nature of ordering and delivery; it is builton trust, common-sense and goodwill – and generally it works pretty well.Checks to be madeWhen checking a delivery, you should:• Ensure all items ordered have been supplied, as requested – quantities, brands,pack types, sizes, quality factors, colours, models, options, capacity are a few• Verify all items listed on the paperwork accompanying the delivery have, in fact,been delivered• Ensure only the items ordered have been supplied• Ensuring all items are delivered in good condition• Ensuring items are of the correct/ordered size – if we have ordered one 20-litrecontainer of detergent, we want to ensure we have not been sent 20 l-litre bottles• Ensuring items are of the correct quality – if we have ordered a 3-ply item, weneed to check that we are not being delivered a 2-ply item. Visually inspect fooditems• Ensuring the correct price has been charged – if the item was listed in the pricecatalogue at $ 115.60 each, we need to check that we are not being chargedmore; similarly, we must notify the supplier if we have been undercharged, oversupplied, or if we have been supplied a superior quality product at a lower priceItems that have not been delivered, due to the supplier not having them in stock, should be listed onthe accompanying paperwork as “Outstanding”, “To Follow”, or something similar.Page | 19Where items that have been ordered are not delivered, there is usually a requirement that someonebe notified to enable an alternative supplier to be sourced, or some suitable action taken tominimise the impact.Items that are short-delivered must be followed up, and an appropriate credit note is to be raised bythe supplier. While most suppliers, manufacturers and distributors will not intentionally underdeliver goods, accidents do happen.Similarly, most will not deliberately deliver items in an unacceptable condition, but things happenthat are beyond their control. The key is to not be naive – trust is essential, but simply acceptingeverything on trust and at face value is a recipe for disaster.Page | 20Act upon variations to quality and quantityWhere variations in the quantities and quality of delivered goods are detected, they must be actedon.While policies and procedures exist, there can often be cases where they are not fully followed.For example, if you have run out of a certain product, such as an important ingredient for somethingyou make – and you desperately need that item – you will absolutely ignore (especially in the shortterm) things such as:• Short-delivery – something is better than nothing, and you may be grateful forwhat you’ve got• Damaged packaging – who cares if the milk is leaking? We need it for all the drinksthat are being ordered now• Price charged – we will note the variation/error and follow up on it later• Condition of the product – there will be times when you will be “forced” to acceptitems that are less than 100% perfect because, again, something may be betterthan nothing; you will normally follow up with the supplier and try to negotiate alower price given the condition of the itemAction to take when deliveries aren’t rightWhen a variation to the quality or quantity of an inwards delivery is identified, your actions willdepend on the company with whom you are dealing and the nature of the relationship you havewith them.Some suppliers will insist certain steps are followed as set out in their buying guides and/or termsand conditions of trade. For example, if one item in a pack is obviously damaged, the whole packmay have to be returned if you want to return the damaged one.Some suppliers will insist that problems (short-delivery, damaged items, leaking products) are notedon the delivery docket/invoice at the time of signing for the delivery. If you don’t identify theproblem at the time of delivery, no claim will be accepted – their approach is “once you’ve signed forit, it’s your responsibility”.Despite these possibilities the standard procedure for dealing with variations in deliveries is:Page | 21• Tell the delivery driver, if this is possible• Note the problem on the accompanying documentation• Sign for the delivery• Ring the supplier, speak to the accounts department and tell them of the problem• Ask them to take appropriate action including raising a credit note; in most cases,you won’t have to ask, as the supplier will commonly catch on pretty quickly andwill offer to do what’s needed• Put any “problem stock” to one side for pick-up by the supplier• Notify your supervisor/management and inform them of the problem.The exact nature of action taken in relation to variations in deliveries will vary between businesses,but the key point is not to ignore it: where delivery drivers and suppliers become aware that theycan short-deliver to you without anything being said, there is the possibility that they will continueto do so.Page | 22Record details of incoming stock according to organisationalproceduresRecording incoming stockPart of stock control is the recording of details about incoming stock. This process is there to enablean easy method of seeing what stock has arrived in the latest delivery, and whether there wasanything noteworthy about it.Some of the key details that will need to be recorded may be:• Names of products delivered• Brands• Cost• Quantity• Quality information – whether there was any damaged or unsuitable goods, ifthere was a temperature problem with refrigerated or frozen goods, etc.• Time of the deliveryThese details are important as it allows for a better communication cycle with the supplier onwhether they are treating their goods properly or not, giving them a way to improve or allowing youto change suppliers if necessary.Ensure that the recording of details is done in accordance with organisational procedures. Ask asupervisor or manager if you are unsure about the correct procedures.Monitoring and maintaining stock levelsAn essential step in efficient stock control is monitoring the stock levels in the reserve area and onthe selling floor. As a direct result of this need, well-kept records are important in the maintenanceof stock levels.When implementing monitoring and maintenance systems for your stock, remember that your stockis your money, and you must make it work for you in the most effective way possible.Records will tell you:• How much stock is currently in storage and on the floor• How much stock is required to maintain stock levelsPage | 23• The suppliers that you deal with to buy stock• Delivery times, stock being delivered• Accounts payable and receivablePurpose of stock controlStock control is a crucial management function can assist the successful operation of any business inmany ways:• It can help to deter theft• It can help to minimise waste• It helps ensure correct prices are charged• It helps generate information about the performance of various departmentswithin the business• It provides the basis for many management decisionsYou must be aware from the beginning that no stock control system is fool proof – staff will alwayswork out some way around it, some way to beat it. This applies whether the system is a manual one,or an electronic/computer-based one. You must therefore always be alert to signs of fraudulentactivities, and be prepared to monitor the stock system so as to take into account new staffmembers, new procedures, new trading hours, changes to suppliers, alterations to target marketsand so on.In a way, anyone with responsibility for stock control must be alert to any signs that indicate thingsare “out of the ordinary”‘ and be suspicious about such events.Suspicion may be raised by:• A staff member in an area they really have no work-related business being• An unusual increase in orders for a certain stock item• Staff alleging an unusually high level of stock breakage• An unusual increase in usage of a certain stock item• A carton that is open, but should be sealedPage | 24• Staff reporting an unusually high level of theft of items by customersStock control and the resultant management information it can produce is always historical in nature– it is always a case of showing what has already occurred rather than what will happen. Thisemphasises the need for you to remain alert to signs of things that are out of the ordinary so theymay be detected before the backward-looking stocktake indicates there is a problem.The food industryThe retail food industry can be somewhat different to many other industries – with the exception ofthe hospitality industry – in that a proportion of its stock is perishable. It has a definite use-by datebeyond which it cannot be sold and hence is worthless and represents a total loss. So, foodbusinesses are different because they have to make sure they use their food before it becomes unfitor unsafe, to use.Page | 25TOPIC 2 – Store stockPromptly transport stock to, and store in, appropriate storage areaTransporting stock to storageOnce the stock has been received, it must then be transported to the appropriate storage areapromptly, safely and without damage.Stock should be promptly moved from the delivery area so as to:• Allow space for further incoming items to be unloaded/delivered• Remove potential tripping hazards• Minimise the chance of theft• Reduce the likelihood of damage to products, cartons and items• Eliminate the confusion regarding stock checks and counts that can occur whenthe receival area is full or clutteredStorage requirements for different kinds of stockSecure storage of stock once delivered is vital to the efficient running of the stock area, particularlyin situations where perishable, fragile or valuable items are involved.Different businesses will have varying storage requirements and procedures, according to theproducts that they receive.To help your business receive and dispatch goods efficiently, a clean, tidy and organised receivingarea is needed. The space and type of area a business has depends on its size and the nature of thegoods it receives.Organisations that receive and dispatch large amounts of stock daily generally have a designatedwarehouse where areas are set aside for specific items.Areas receiving and dispatching fresh food will need to be hosed regularly. Items used to help takethe delivery of the goods might include trolleys, forklifts and pallets. These should be housed wherethey are easy to access.Page | 26Even a small business should have processes in place to indicate where goods are to be stackedwhen they are delivered, prior to being arranged on the business shelf.Store stock in the appropriate locationAll stock should be stored in the appropriate location and in accordance with enterprise securityprocedures. What exactly is the appropriate location will depend on the type of stock being stored.Storage requirements for specific goods and their suitability for different kinds of stockIn the restaurant there are four main types of storage that products can be stored in, according totheir requirements.These types of storage are:• Refrigeration – suitable for goods that need to be kept cold but not frozen,refrigeration is the main type of storage that any food business will use to protecttheir goods. It is best for high-risk food items, cold products such as salads, drinks,and dairy, and anything that needs to be thawed• Freezer – the freezer is suitable for the storage of frozen goods, such as icecream, as well as for long term storage of other products that aren’t required forsale in the near future• Dry storage – dry storage is effectively a pantry. Restaurants should have a drystorage room where products such as flour, sugar, unopened cans and sauces,spices, uncooked pasta, etc. can be stored• General storage – general storage areas are for the products that don’t really havea home in the other storage areas. There will usually be several general storageareas for the different departments of the restaurant, such as a wine area for thefront of house, an area that stores spare cutlery, crockery, and equipment, and anarea for the storage of cleaning chemicals and equipmentThe central storage area may comprise a range of shelves, of different shapes, depths, volumes andheights. Some shelves will be close to the floor, some will be at waist level, and some will be highabove the floor. Ladders/safety ladders may be used to store and access stock on these highershelves.Page | 27The more commonly used, and the heavier, items will be stored on the bottom and middle shelves,whereas the less commonly used items, and the lighter items, may be stored on the top shelves.Other central storage may feature spaces for goods (that may be called “bins” even though no actualbin exists), into which products are stacked.Most storerooms will constantly be kept under lock and key, as well as other security/surveillance.Employees issued with a key to any storeroom must not lend their key to anyone, including otherstaff members. The whole idea of issuing keys is to restrict access to an area, and those who lendkeys compromise this system. Keys must not be left unattended at any time so as to eliminate thechance of unauthorised use.Incorrect storage of food can cause spoilage and food poisoning. High-risk food should be kept at 5°C or below, and above 60 °C to avoid the ‘temperature danger zone’, where bacteria multiplyfastest. You should store raw food separately from cooked food.Food StorageFood should only be stored in areas that are designed for that purpose. This includes food stored in arefrigerated van, freezers, cool rooms, dry store, transport van and fridges.There are a number of requirements for food storage which are common to all types of storageincluding:• Ensuring that all surfaces such as walls, floors, ceilings and shelving are thoroughlycleaned and well maintained• Storing foods in original packaging, sealable containers or covering to protect foodfrom contamination• Ensuring that food containers are food grade and not damaged• Checking and removing food past it’s used by or best before date• Rotating stock using the F.I.F.O principle (First in, First out)Page | 28Food SafetyFood poisoning is often caused by bacteria from foods that have been incorrectly stored, prepared,handled or cooked. Contaminated food may look, smell and taste normal. If food is not storedproperly, the bacteria in it can multiply to dangerous levels.Beware of the temperature danger zoneFood-poisoning bacteria grow and multiply the best within the temperature danger zone of 5°C to60°C. It is important to keep high-risk food out of this temperature zone by keeping it either colderthan 5°C or cooking it to higher than 60°C.Take special care with high-risk foodsBacteria can grow and multiply on some types of food easier than others. High-risk foods caninclude:• Dairy products• Small goods such as hams and salamis• Seafood• Cooked rice and pasta• Raw and cooked meat, including poultry and foods containing them• Prepared salads like coleslaws, pasta salads and rice salads• Prepared fruit salads• Eggs and egg products• Ready to eat foodsFood that comes in packages cans and jars can become high-risk foods once opened, and should behandled and stored correctly.Cold StorageYour fridge temperature should be kept below 5°C. The freezer temperature should be kept below –15 °C.As soon as your products arrive at your establishment you need to ensure chilled and frozen foodsare put in the fridge or freezer immediately. Make sure foods stored in the freezer are frozen hard.Page | 29Storing cooked food safelyWhen you have cooked food and want to cool it:• Put hot food into shallow dishes or break it down into smaller portions to helpcool the food as quicker• Wait until steam has stopped rising from the food before putting it in the fridgeAvoid refreezing thawed foodFreezing food dramatically slows the growth of bacteria, allowing it to stay in frozen storage for farlonger than in cold storage. This is why using frozen storage is appealing.However, once you start to thaw frozen food, the bacteria will be able to speed up their growth. It isfor this reason that you should never refreeze any food that has been thawed.A good strategy is to thaw frozen foods in the fridge or walk-in cool room. This helps to prevent thefood from being exposed to the temperature danger zone, keeping it safer. You can use a microwaveoven to quickly defrost something, but it must be cooked immediately after it is defrosted.Store raw food separately from cooked foodRaw food and cooked food should be stored separately in the fridge, with raw foods being on thelower shelves and cooked foods being on the higher shelves.The bacteria in raw food can contaminate cold cooked food, allowing it to multiply to dangerouslevels if the food is not thoroughly cooked again.Always store raw food in sealed/covered containers on the lower shelves of the fridge. Keep rawfoods below cooked foods, this will help to avoid liquids such as meat juices from dripping into andcontaminating the cooked food.Segregation of non-food items from food items that have potential to cross-contaminateFood products should never be stored with non-food products that have the potential to causecross-contamination. This includes cleaning products and chemicals.Non-food products that have the potential to cause cross-contamination should be stored in an areathat is well away from any food storage areas, ideally in a different part of the building.Page | 30Choose strong, non-toxic food storage containersMake sure food storage containers are clean and in good condition. Only use them for storing foodand cover them with tight-fitting lids, foil or plastic film to minimise potential contamination.Transfer the contents of opened cans and jars into suitable containers.If in doubt, throw it outThrow out high-risk food that has been exposed to the temperature danger zone for more than fourhours.Check the use-by dates on food products and discard out-of-date food. If you are uncertain of thesafety of a food item, get a second opinion, then throw it out.Remember:• Keep high-risk food at 5 °C or below or above 60 °C to avoid the temperaturedanger zone• Store raw foods below cooked foods• Store food in suitably covered containers• Avoid refreezing thawed foods• Check and observe use-by dates• Take special care with high-risk food products11 | 31Use safe manual handling techniques to avoid injury when movingand storing stockSafe manual handling techniques for the receipt, transportation and storage of stockSafety of goods is another important part of safe handling and storage procedures. Staff must beaware of any special requirements the stock may have in regards to movement and storage.Consideration must be given to:• Fragile• Perishable• Flammable• Hazardous• Security items so that they can be moved and stored correctlyPersonal safety is important. You may elect to physically pick up and carry light items though you arestrongly cautioned:• Not to overload yourself• Not to carry any item that is slippery or has an uneven surface• Not to carry an object that is of an irregular and difficult shape• Not to carry any item that obscures or obstructs your view of where you arewalking• Not to carry any item that causes you to overstretch, or which places a strain onany part of your bodyIf you decide to carry the item, check first to ensure the route you plan to take is free of hazards andthat the carry can be done safely.Heavy items must be transported on an approved trolley. The method of loading and unloadingthese heavy items must be done in accordance with all relevant health and safety standards andprocedures.Page | 32Manual handling techniquesLifting and handling procedures are commonplace in any work environment. There are very few jobsthat do not pose a risk when performing them, things like bending and twisting when packing boxesor stocking shelves, standing for long periods, and loading and unloading products from trucks andtrolleys.The best method to perform manual handling safely involves:• Avoid bending, twisting, or reaching• Bend your legs, not your back• Use your legs to lift• Grip the object tightly and securely• Pull the load close to the body• Wherever possible, vary heavy tasks with lighter loads• Use team lifting or lifting aids if possibleA proper lifting technique is crucial for ensuring back safety, but proper planning is also key toensuring manual handling safety. Before you lift or move anything, take a moment to consider:• Do you need to do it manually?• How heavy is it?• Where are you moving the item from and where are you moving it to?• What route do you have to follow?Consider using mechanical help wherever possible, or gain assistance from others. Fasten the load tothe equipment, so it doesn’t fall off if sudden stops or vibrations occur.Most back injuries can coem from one of these five causes:• Posture• Body Mechanics/Work Habits• Loss of FlexibilityPage | 33• Poor Conditioning• Stressful LivingMost back injuries are the result of cumulative stress on the muscles in the back as a result of aminor injury being repeatedly agitated, usually from heavy lifting or standing in the same positionfor longs periods of time.22 | 34Label stock according to organisational proceduresWhen goods are delivered from suppliers, the stock should be stored correctly and clearly labelled.All food product supplies should arrive in packaging that clearly states their contents and has clearlyvisible use-by dates, which means that they should be stored in their original packaging if possible.When supplies are removed from their original packaging, usually for preparation or to make themmore space saving, information such as contents, date received, use-by date if known, date of lastquality check, and the employee who performed the check should be recorded on a label that isattached to the new packaging.Also, when you order new stock, there should be an associated pricing system that goes with eachnew product.When ordering pricing materials, two basic options exist:• Purchasing the materials to enable the business to create its own pricing labels,tags and signs• Ordering/obtaining ready-made POS pricing materialsEquipment used for tickets/labelsSome businesses take a very basic approach to tickets/labels while other businesses are more hightech, using the latest in electronic equipment, gloss multicolour posters, and tempting illuminatedgraphics depicting the products they sell.Within this wide range of approaches to ticketing/labelling, you may be required to order and use:• Electronic menu boards• Bar coding equipment• Price boards• Pricing guns• Felt-tipped pens• A digital camera• Electronic labelling equipment• Header boardsPage | 35• Whiteboards and chalkboards• Self-adhesive labels• A computer and printerElectronic ticketing equipmentElectronic ticketing equipment includes bar code printers, label printers and flatbed-type scanners.These may be, and most commonly are linked to a personal computer, using a specificprogram/driver.The information needed on the labels is keyed into the computer and the program converts thatdata into a label. Labels can be purchased by the roll in a variety of colours, shapes and sizes. Theycan be bought blank or partially/fully printed.The program for each printer will vary somewhat but usually includes facilities to enable previewand a test print (of, say, five labels) before commencing a full run. Thermal labels should be chosenwhere the product (such as food) is to be stored under cold conditions.There are some “stand alone” label printers which are portable, and battery or electrically powered.These machines allow you to key the product details and information directly into theprinter/machine and generate the labels at the shelf/on the floor rather than in an office. Theseitems do not require connection to a personal computer.Operating instructions/manuals for many printers are available as free downloads from manywebsites of suppliers. Some websites even supply free demo software.Manual ticketing/labellingWhen writing tickets by hand:• Make sure handwriting is legible – avoid very ornate and cursive styles• Printing is preferable to “joined writing” – it’s easier to read and stands out more,but joined writing can indicate “style and class.”• Don’t let the ticket get too busy – less is more• Avoid a rainbow of colours – stick to the basics, used sparingly• Only use a graphic or drawing if you can do it well – poor artwork can wreck anPage | 36otherwise acceptable and effective ticket• Only use a good, large, colour photo – never use black-and-white’ stay away fromsmall photos and never use a bad photo• A border on a ticket adds emphasis• A star or some other symbol may add extra attention-grabbing emphasis – flashinglights are sometimes added for extra emphasisPage | 37Report on excess stock according to organisational proceduresExcess stockExcess stock is any stock that is in storage that is unlikely to be sold before it reaches the end of itslife cycle. This is a problem, as any stock that is determined to be excess has the risk of becomingwastage and a profit loss for the business.Excess stock may also be any stock that can’t be properly stored due to overcrowding and fullstorage units.Performing regular stocktakes and ensuring that you are not over ordering products will assist witheliminating excess stock.Should you find excess stock, you will need to report it to the relevant personnel, usually asupervisor or the head chef, to ensure that it is aggressively pushed to be sold.One of the major factors that causes excess stock is slow moving items.Checking for slow moving itemsWhilst monitoring the stock reorder cycle and the stock levels, the rate of sale, or turnover of stock,would have come to your attention.Accurately identifying fast and slow moving stock is a priority:• Fast moving stock is your best sellers. They require sufficient levels of backupstock to ensure you never run out• Slow sellers need to be identified to ensure they are eliminated from the range tothe extent that is possible or feasibleA method of calculating fast and slow sellers is to calculate the “stock turn” of the stock. Thiscalculation relates to the sale of the item over a period of time. It is the number of times the averagestock value is turned over in a fixed trading period, and can be expressed as:• Rate of Stockturn = Total Sales divided by Average Stock• Stockturn is usually calculated by applying the following formula:• Opening Stock + Closing Stock / Number of Months/WeeksPage | 38Where a fast-selling line is identified:• Consideration needs to be given to making further purchases to maximise thepotential that this item presents• Previous quantities ordered may need to be revised, which opens up the prospectof volume and quantity deals and discounts – or other “sweeteners” from thesuppliers• Consideration may be given to increasing the selling price to capitalise on the“boom”• Consideration may be given to organising a special event and/or display to build,and extend, the existing momentumWhere a slow-selling line is identified:• Consideration may be given to contacting the supplier and asking if they willaccept return of the items; we may indicate that we are prepared to return themand accept a discounted rate/credit• Consideration may be given to contacting other businesses – either in yourgroup/chain, or even those businesses that are competitors – and asking if we cando a deal with them• You may consider developing and creating a display/promotion designed to clearthe line (a special package deal, a sale) that features the slow-moving article,perhaps at a very competitive price (at cost, or below)• You may consider creating a brand new dish, drink or deal incorporating the slowmoving item; don’t forget to ask staff for their ideas, too• In some cases – and this obviously will not apply in all instances – you may elect apromotional program where the customers buy X, and get a free, slow-movingitem free-of-chargePage | 39Page | 40TOPIC 3 – Rotate and maintain stockRotate stock for maximum use and minimum wastageRotation and wastageRotation of goods is needed in hospitality establishments to ensure food supplies are fresh and arewell maintained. Some basic principles need to be followed:• Rotate supplies according to enterprise policy• Move and shift supplies according to safety and hygiene requirements• Check the quality of supplies and complete reports as required• Dispose of damaged or spoiled supplies according to enterprise and regulatoryrequirements• Identify and report any problems promptly• Maintain storage areas to optimum condition, ensuring that they are clean, atrequired temperature, free from vermin or infestation and free from defectsCorrect storage of food and other hospitality supplies is necessary. Food storage areas need to usestock rotation principles meaning that stock is used on a first in, first out basis (FIFO). This preventswastage and food spoilage, as well as minimising the opportunity for food contamination.It is inevitable that some kitchen supplies will be wasted. However, the amount of wastage can bereduced by applying some basic stock control principles, such as:• Rotation:o FIFO (first in, first out) – rotating supplies is essential for retaining quality.This means placing new stock behind older stock so the older stock is usedfirsto LILO (last in, last out) – this is the same concept as FIFO, just in theopposite order• Storage – use correct storage procedures for a specific food to minimise the needto dispose of stock that has deteriorated or become contaminated• Food segregation – keep all supplies of a particular type together and don’t allowPage | 41foods to mixReplenishmentReplenishment is the process of ordering new stock to refill the storage areas where stock has beensold and is running low. It is an important process, as low stock levels can become a problem if thebusiness is unexpectedly busy.OrderingOne factor to be considered in the process of ordering stock is when to order stock so that it arrivesat the right time. The time it takes from when an order is placed with a supplier to when it arrives atthe destination is called the lead time. Lead time can be anything from overnight to several months,depending on the type of stock, the supplier and minimum order requirements. Knowing the leadtime enables the timing of orders to be more efficient.Once the need for ordering more stock has been established, there are several ways of completingthe order.• Manual ordering involves counting the stock to establish minimum stock levels,recording the stock levels in a stock book or on stock cards, calculating thequantity to be ordered and then placing the order with the supplier.• Electronic ordering systems use point of sale (POS) equipment or hand heldequipment. A system that uses POS equipment can trigger automatic orderingsystems called Electronic Data Interchange (EDI). As sales are made, the computerlinked to the POS equipment records the transaction and calculates the new stocklevel. As the minimum stock level is reached this triggers the automaticgeneration of a stock order.• Hand held electronic equipment scans the barcodes, and the stock levels areentered manually. This information can be downloaded or entered into acomputer from which orders are generated.The number of different people ordering stock should be kept to a minimum. This reduces the risk ofover ordering or under ordering, reduces mistakes and makes following up unfilled orders moreefficient.Page | 42For each department, it is recommended that there is only one or two people responsible for stockordering. For smaller businesses, there may only be one or two people who take care of the orderingfor the entire business.Regardless of who is performing the ordering of stock, there are some key responsibilities that theywill need to know of. The main responsibility is ensuring there is a suitable level of stock in storagethat won’t sit there unsold and need to be disposed of. Other responsibilities include:• Organising stocktakes• Organising stock storage areas to make them easier to control• Contacting and organising suppliers• Thorough record keeping of all orders they placeOrder and delivery documentationThe ordering and delivery of stock is a process that requires a high level of documentation, as it isimportant that the tracking of stock through the supply chain is thoroughly documented to ensurethat no stock goes missing.Some of the key pieces of documentation for orders and delivery include:• Order forms/purchase order – created by the business placing the order, itcontains information about the products that they are wanting to purchase• Invoices – issued by the supplier, invoices are effectively a receipt of purchasethat shows what the supplier has charged the business and what products havebeen delivered• Manifests/packing slip – usually carried with the delivery driver, it is a list of all ofthe goods that they are carrying with them that day• Requisition orders – similar to an order form, the requisition order is usedinternally within a business, where each department must complete a requisitionand submit it to the department in charge of ordering for the businessPage | 43Regularly check the quality of stock and report findingsWhen dealing with stock in storage or excess stock, it is important that you are constantly checkingall perishables items for quality. You should also be checking, cleaning, and maintaining storageareas on a regular basis. This is to help combat the build-up of debris which is a way that pests canbe attracted to food businesses.Correct disposal of food waste also helps to avoid the presence of vermin and pests. Where possible,goods should be recycled to make the business more environmentally friendly.Inspect supplies for pests and/or damageIt is very important to continually inspect for pests as they can have a big impact on whether yourbusiness remains open or is shut down because of unsanitary conditions or food safety hazards.Work with a pest control professional to make sure everyone is prepared and can act against thepests or know what to do.It’s easy to see why pests can be a problem if they are found in any part of your restaurant. Rodents,flies, and cockroaches, can contaminate food and cause food-borne illnesses such as Salmonella andE-coli. The presence of pests doesn’t just harm your customers, but also your staff, your restaurant’sreputation, and can even lead to legal action.By paying special attention to pest “hot spots”, or places where pests have easy access, you canaccomplish the work necessary for pest prevention.Receiving AreasInspect all incoming shipments for signs of pests such as gnaw marks, droppings and alive or deadinsects. Cockroaches are known for “hitchhiking” into restaurants by climbing onto shipments orpackaging materials. Inspection tools can help spot urine and grease marks left by passing rodents,and flashlights are handy when checking out crates, boxes and pallets.Do not put any shipments into storage before thoroughly inspecting the packaging and contents. Ifyou find any evidence of infested product throw it out immediately.Storage AreasStorage areas make the perfect home for pests because they are dark, damp and free of the hustleand bustle. Monitor these areas continually and eliminate any odours, food debris, or spillage.Remove products from their original cardboard packaging since cockroaches feed off the glue thatholds them together and use boxes as harbourage. Instead, store supplies in tightly sealed plasticPage | 44containers. Shipments need to be kept on open-backed stainless steel shelving, at least, six inchesoff the floor and 18 inches from the wall.The KitchenSanitation is the best line of defence against pests in the kitchen. Remove any excess moisture, aspests only need a small amount of water to survive.Immediately clean any food spills to prevent it from spreading under equipment. Never leave dishesin the sink overnight. Remove trash every day and more frequently if it contains food waste. Be sureto line all trash containers with disposable plastic liner bags.33 | 45Safely dispose of all excess or spoilt stock and waste, especiallyhazardous substances, to minimise negative environmental impactsCorrect and environmentally sound disposal methods for all types of waste and inparticular for hazardous substancesSort general waste and dispose of appropriatelyPart of your job in your kitchen will be to clean up scraps of food, oil, plastics, tins, glass, and generalwaste. This means that you are going to have to sort out what waste goes into what bin.In each establishment, there will be a policy and procedure that will show guidelines for the sortingand disposal of all waste whether it be general waste to recycle waste.It is also a legal requirement of the Environmental Protection Act 1970. Key aims of the Act include:• Sustainable use and holistic management of the environment• Ensuring consultative processes are adopted, making community input a keydriver of environmental protection goals and programs• Encouraging a cooperative approach to environment protectionTo help achieve these aims, the following Principles of Environment Protection were added to theAct in 2001:• Integration of economic, social and environmental considerations• The precautionary principle• Intergenerational equity• Conservation of biological diversity and ecological integrity• Improved valuation, pricing and incentive mechanisms• Shared responsibility• Product stewardship• Wastes hierarchy• Integrated environmental management• Enforcement• AccountabilityPage | 46Many businesses such as commercial kitchens regularly generate hazardous waste. This may include:• Kitchen chemicals• Bathroom cleaners and solvents• Commercial and industrial chemicals• PoisonsAs a business, it is your responsibility to arrange a commercial collection service.All hazardous waste must be disposed of according to the Victorian Environment Protection Act andany other relevant laws and guidelines. Usually this will involve the use of a company that specialisesin the disposal of hazardous waste.Oil and liquid wasteLiquid waste, such as cooking oil, must not be placed in a general waste bin or poured down thedrain. They must be placed into a designated container where they are collected and later refinedfor further use.You can organise with a professional company that deals with this waste to have a storage unitdelivered which they will collect after a predetermined amount of time.Page | 47Maintain cleanliness of stock handling and storage areas, and identifyand report problemsCleaning a restaurant kitchen involves pulling the appliances out from the walls and both sweepingand mopping underneath. You also need to wash any food containers, utensils and cookware in hot,soapy water and wipe down all surfaces. Food preparation areas need cleaning with a sanitisingproduct, and any appliances should also be washed and thoroughly cleaned.Cleaning SurfacesWhen cleaning surfaces start at the back and using a figure 8 work your way forward (towardyourself), “think of it as lay down a rope”. You should always use the appropriate cleaning agents foreach job. You shouldn’t use a floor cleaner to wipe down a kitchen counter. Your establishment mayhave different brands they use. If you are unsure of what cleaning agent to use, ask a manager oremployee.Cleaning floorsFloors must be swept and mopped when dirty and especially at the end of each trading period, orthe minimum it should be cleaned at least once a day.Detergent’s that contain a disinfectant should be strong enough to remove any grease from thefloor. Remember, when cleaning the floor to follow OH&S protocol as well as your organisationssafety policy and procedures.When washing the floors, a damp mop is to be used in a continuous left to right motion using eithera figure eight or a clockwise movement from 9 o’clock to 3 o’clock. You have to always remember tochange the water when mopping as required. You must also rinse you mop and store in a locationthat is away from the food area and in an area that will allow it to dry, at the end of the day.WallsIt is recommended that the frequency of cleaning walls in a commercial kitchen should be at leastonce a week or sooner if the walls get dirty and greasy.Food preparation sectionAll food preparation surfaces should be cleaned continuously during your shift, and thoroughly andthe end of the day. When cleaning the surfaces, you should use a sanitiser daily.Remember, you shouldn’t use a scourer on stainless steel benches.Page | 48Refrigerators, freezers, and cool roomsRefrigerators, freezers, and cool rooms must be cleaned daily and sanitised weekly using non-toxiccleaning agents inside the fridges and cool rooms.Dry storageWhen you clean the dry store you should clean the surfaces the same as other kitchen surfaces,shelves should be dusted regularly, floors should be cleaned at least once a week.DishwasherThe dishwashers in your organisation are commercial dishwashers and vary in size depending on thesize of your restaurant/kitchen and are designed to wash the dishes and cutlery efficiently andquickly. They wash from one tray to multiple trays which are fed through on a conveyer belt.It is important to make sure that the dishwasher in your establishment works properly. It canbecome clogged up with food scraps and effect the ability of the dishwasher to wash. So you shouldscrape and rinse the dishes off prior to them going into the machine. Also, dispose of any brokendishes correctly.Page | 49Chopping boardsAs these are used for food processing, there is always a chance for cross contamination of food ifthey are not cleaned correctly after using them for different food groups.When cleaning the boards, they should be scraped clean then washed with hot soapy water anddried. Using sanitisers are also recommended.Placing them into the dishwasher with a temperature of over 82 degrees Celsius is recommended aswell.Environmental IssuesThe environment should always be considered when selecting, using and disposing of chemicals.Biodegradable detergents are the preferred choice as they are designed to break down in water andcause less pollution.Regardless, hazardous chemicals can cause a variety of symptoms, including:• Headaches• Asthma• Nausea• Chemical burns• Fatigue• Skin and eye irritationAs well as the vapours you must remember that contamination of food by cleaning agents can alsocause illness to customers including mild upsets through to serious poisonings.Page | 50Cleaning proceduresCleaning a kitchen regularly and thoroughly removes materials that allow the growth and spread ofbacteria. Sanitising is the process of destroying microbes that can contaminate food.A regular cleaning schedule should be in place in every kitchen you work in; it tells you everything inthe kitchen that needs cleaning, how regularly it should be cleaned, and when it was last cleaned.This type of recording is in place for a reason; it is to ensure that everything that should be done isdone.Food and rubbish should be disposed of as regularly as needed. Rubbish bins should not overflowand be allowed to spill out onto the floor.A standard cleaning process for pack down of any area will consist of a basic skeleton structure youcan easily follow:• Pre-clean – remove excess dirt and food scraps by sweeping, scraping or wipingand pre-rinsing with water• Wash – hot water and detergent• Rinse• Sanitise – heat or more common chemical spray• Polish and dry• Air dryBy following this simple procedure, you can ensure you’ve done the best you can to ensure allsurface areas are free from bacteria.Floors are one of the many things that often get overlooked or are just not done thoroughly enough.You should always use hot water and a chemical cleaner.When washing a floor you should follow the procedure below:• Thoroughly sweep all areas you can gain access to first• Wet the floor with hot chemical based water first• Scrub to loosen anything that may be stuck to the floorPage | 51• Using a squeegee pull all the water to the drain• Do a final dry mop of the entire areaSort and remove linen according to organisational proceduresYour establishment will have certain guidelines in place for how and when linen is to be collected forcleaning. Some general tips that will assist you to sort and remove linen for cleaning will include: • Linen must be collected at the agreed times to ensure that the laundry process iscarried out quickly and efficiently, without delays• Other departments like food and beverage, kitchen, and housekeeping will relyon the linen room to supply them with clean, undamaged linen. You must planyour time efficiently, so their workflow is not interrupted• You must be well organised and thorough in your record keeping otherwise youwill not have sufficient linen supplies to keep them going• Plan work and staffing, so that correct procedures are followed for the timelyhandling and transporting of linen to storage areas• It is important to manage your time well so that soiled linen is counted andbundled before the laundry people arrive to collect it. Otherwise, you will beupsetting the routine and deliveries/collections for the rest of the day• Linen storage areas should be clean and well organised. All stock should berotated to ensure consistent quality, which meets organisational requirements• You will be working as part of a much larger team; therefore, it is important thattasks are allocated according to time to ensure an even flow• It is important to have in place agreed times for the receiving of dirty linen andfor the issuing of clean linen in order to maintain the flow of work within thehousekeeping department4 Linen can include items such as table covering, napkins, bedding, etc. which means that theseprocedures are only relevant to the establishments that use linen.4…Page | 52During the workday, if you notice any serious problems with the cleanliness of the facility, such as apest infestation or a large build-up of debris, you will need to report it to a supervisor so appropriateaction can be taken.Page | 53Use stock control systems and equipment according to organisationalspeed and accuracy requirementsYour job may require you to maintain the stock ordering and recording system within the business.The business will keep some form of stock system that will help them maintain a record-keepingprocedure that identifies:• The level of stock-on-hand• The reorder level for each item• Where stock has been issued to, by department• The value of stock that has been issued• The value of the stock-on-hand• The maximum amount of each item that can be ordered at any time• When that stock was issuedIt should be noted that there is a wide variation in the record-keeping requirements betweenbusinesses – some will have an extensive system (predominantly the larger businesses) while in otherbusinesses there may be little or no record-keeping system. ln the smaller establishments, theowner-manager simply orders stock when they feel/believe it is necessary to do so, and/or whenitems are “on sale” or attractively priced from the suppliers.Stock recording systems can also be used to track cost prices of items; where bin cards are used it isusual to add the name of the most recent supplier of the item concerned, together with the unitprice of the item. This can then be used as a measuring stick when the next purchase is made – alower price means a better deal, a higher price may mean that related selling prices will have to rise,or profit fall.Stock control systemsThere are a range of different stock control systems that can be used to organise and control stock inthe restaurant. Some of the more common ones are:Bin card systemA bin card system is a common in a perpetual inventory systems, which is an inventory that is alwayschanging. The bin card system includes a number of data points about the various products on hand,but most importantly it shows how many units of each product are in stock.Page | 54The most important number in the bin card system is the current items in stock. As items are addedto or taken from storage, this number is updated. The system can also be setup to show theinventory level at which you need to commence reordering procedures. In the most basic terms, thebin card system shows the inventory status of any product at any moment.Imprest systemThe best way to think of an imprest system is to think of a petty cash box. The same idea applies,where there should always be a certain amount of stock in storage which is replenished when thereserves get too low or after a certain amount of time has passed.With this system, proper recording of stock movement is required to ensure the right amount ofstock is still within the building, in whatever form it is in, until it is sold, otherwise stock can gomissing and the system falls apart.Integrated point-of-sale systemAn integrated point-of-sale (POS) system is one where sales are generated and recorded through theuse of a computer terminal or handheld device. These are linked together to allow for a sale tocreate a receipt that the customer can take with them. They also allow for orders to be taken andsent to the kitchen for production.POS systems are also capable of receiving payments and some can track stock that has been used forsale.Ledger systemThe ledger system is used to track where all of the stock is going. It is a document that hasinformation on what stock items are in storage and their quantities. It is useful as part of a perpetualinventory system, as it tracks the current quantity of items.It is similar to the bin card system, although it provides much less information. It only shows howmuch of each item there is and sometimes the cost of the stock. Regular stocktakes need to beperformed to track the levels of the stock in storage.If the name and contact details of the supplier of equipment are recorded, it is common also torecord details relating to the length of any guarantee.It is common for the manual system to be physically located with the stock items. As with anyaspects of stock control, speed of noting stock movement and accuracy in recording its movement isessential. This means that stock movement should be recorded as and when it happens; it is notacceptable to only record stock movement once every week, or month.Page | 55Depending on the type of stock that you carry, your orders may have to be placed weekly,fortnightly or monthly. In larger businesses, individual staff members may be responsible forseparate areas of the business as far as stock count and reporting, and a supervisor is thenresponsible for the ordering process. This makes individuals accountable for specific parts of thestock control process, and errors and losses can be more easily traced.As a supervisor, it is important that whichever system you use is being accurately maintained. Anyerrors in ordering can result in huge profit losses for your business. If, for example, you do not placethe correct order for a very popular new item that you carry, you will lose customers who will go toanother business to purchase.This process ensures that the establishment knows exactly how much dirty linen has been sent tothe laundry company at any one time and avoids errors for overcharging, as well as ensuring thatsufficient stock is delivered.Limits to what a stock control system can doA stock control system is useless unless management use it. Where the system produces figures thatindicate something is wrong, then someone must act on that – they need to some detective work toidentify exactly why the problem has arisen and then act to ensure the situation is fixed. All the stocksystem will identify is that there is a problem – it often will not indicate what the problem is, who isresponsible, or what has happened.For example, a stock control system may indicate that a certain department is underperforming by$200 per week, but it will be hard-pressed to tell you exactly who is at fault, whether they arestealing cash or not (they may be giving unauthorised discounts, charging the wrong prices, or givingstock away), or whether they are stealing stock.The stock control system simply flags all is not as is expected.Relevant Stock definedStock can be seen to include:• Food and beverages – all product lines, processed and unprocessed items,alcoholic and non-alcoholic stock• Equipment – including operational equipment, maintenance equipment, cleaningand office equipment• Linen – uniforms, dining and bed linen plus towels and clothsPage | 56• Stationery – pens, paper, staplers, books, rulers• Brochures and promotional materials – displays at the service counter as well asitems kept for distribution to other sites such as tourist attractions andtourist/visitor information centres• Cleaning supplies and chemicals• Vouchers and tickets – used for promotional purposes, as part of specials orpackage deals, to cater for groups and to encourage and reward repeat business• Souvenir products – items that are frequently “souvenir” are often also offered forsale in an attempt to overcome loss through theftPage | 57LevelsMonitoring stock levelsHow do the records assist you in making sure that stock levels are maintained? Records are essentialso that consistency in figures can be maintained, and any discrepancies can be sourced andevaluated.Consistency in figures may relate to a number of areas:• The quantity of stock ordered• The quantity of stock received• The quantity of stock stored• The quantity of stock moved to the selling floor• The quantity of stock dispatched or transferredWhen maintaining stock levels in your business, consideration needs to be given to a number offactors, such as:• What is the ideal level of stock for the product?• How much space is available for stock storage?• How often stock is reordered, i.e. what is the reorder cycle?• Is it easy to adjust stock levels without suffering loss?• What is the demand for the product?• What is the availability of supply?• What is the supplier’s lead time i.e.: the time between placement of order andreceipt of the goodsThe basic assumption behind maintaining optimum levels of stock is to avoid an “out of stock”situation, and thus, maintain sales and meet customer demand. It is important that you do not treatthe storage area of your business as a warehouse.Rather, it should be a short-term holding area to guard against shortages, and you should ensurethat your staff are aware of this policy and follow procedures accordingly.Page | 58The levels that are in reserve need to be monitored constantly, to ensure that they are on target.A system of monitoring could include:• The actual method you should use, for example, comparison of figures from yearto year, physically counting what is in reserve or a combination of a number ofmethods• The frequency of the monitoring, each day, week, bi-weekly, monthly• The actions that are available to you if you find you have a stock shortage orsurplusThere is an on-going need to monitor stock in order to:• Check the figures and ensure the business is receiving what it is legitimatelyentitled to control shrinkage/theft• Ensuring we don’t run out of stock• Identifying stock levels – to determine what and when we need to order• Identifying slow and fast moving lines• Identifying damaged stock and/or conditions and situations that are causing theproblemMaintaining stock levelsMaintaining stock levels is a balancing act – there is usually a need to balance the amount of stockon-hand with the money that is tied up. We want to maximise stock levels while minimising themoney that is committed to stock – and ensure we never run out of anything.Maintaining stock levels thus includes ensuring the physical stock-on-hand does not exceed businesslimits – many businesses will set a numerical minimum, maximum and reorder stock level for items.• The minimum level is the level below which stock must not – under anycircumstances – fall• The maximum level is the most of any item that is to be in business at any time,regardless of any deals that may be available from suppliers, and regardless ofPage | 59other factors (such as possible impending strikes, supply shortages)The reorder level is the set level stock must fall to before the new stock can be ordered in – thisreorder level (and reorder quantity) removes discretion from ordering and guarantees we don’t runout of stock.Where you believe an exceptional situation is brewing that warrants orders being placed, you shoulddiscuss this with your supervisor – you are far better off talking it through and being told “No”, thanstaying quiet and running out.Page | 60Additional KnowledgePrinciples of stock controlProduct life cycle and maximising the use of all stockA product life cycle is the stages it goes through from when it is first purchased to when it isremoved from sale. In the food industry, this means when it is first ordered and delivered to therestaurant until it is either sold or must be disposed of due to reaching its use-by date.Knowing about a product’s life cycle is important, as it allows you to push those products who arenearing the end of their cycle to turn them into profits rather than waste.Along with this is maximising the use of all stock. What this entails is using all stock that is in yourstores to their fullest. The easiest way to describe this is with a side of meat. Maximising the use ofthis product will mean you will not only cut steaks out of it, but you will also use those trimmings tomake a stock, use larger off-cuts to create a special dish, such as stir-fry, and pushing these specialsto sell quickly.This maximisation of stock is important for business as it assists with ensuring that no stock is left tosit in storage not being sold until it goes off and needs to be disposed of.Page | 61Stock control procedures and template documents and reports for:LossWhen talking about loss in stock control, it is generally in regards to lost profits from the wastage ofproducts or the lack of sales. All businesses what to minimise their amount of loss, so having properprocedures in place to help prevent it is important.Some of the key procedures that can help reduce the amount of loss can include:• Ensuring proper stock rotation – FIFO, LILO, etc.• Not over ordering stock• Maximising the use of stock• Correctly storing stock• Proper marketing of goods for saleAnother important procedure is to perform regular stocktakes and create a report on the amount ofstock that is nearing or has reached the end of its life cycle.PerformanceTracking the performance of stock is important for knowing what your fast and slow moving stockitems are. The easiest way to do this is to track sales and make note of what products are sellingmore than the rest.These products that have a high performance will need to be more regularly stocked, so it isimportant to note this and continually track the products to ensure they don’t decline in salesunexpectedly, which makes any excess stock of these items potential losses due to not selling asintended.Page | 62Reorder cyclesA reorder cycle counting is the continuous physical counting of inventory so that all items arecounted at a specified frequency, and inventory records are periodically reconciled with actual data.A “cycle” is the time required to count all items in inventory at least once. This cycle may need to beadjusted to accommodate changes in the demand for a product. The reorder cycle is dictated by thefrequency of orders and the quantity that is ordered.This process may be manual, (where the delegated staff member places an order weekly, monthly,etc.), or electronic.Stock systemsMany stores establish limits for stock items to guide those making the purchases. Theseguidelines may give the level at which an order is to be placed, and may set the quantity ofstock to be ordered.Considerations involved include:• Historical usage• Space available• The season• Promotions in force or expected• Available funds or lines of creditMonitor and adjust stock reorder cyclesAs the old saying goes -“nothing stays the same”. This is true of stock levels too, and we mustbe prepared to monitor these levels and make whatever adjustments are necessary.There are many reasons stock levels may need to be adjusted, and these include:• Seasonal influences• Holiday periods• Strikes• Special sporting and local events that create unusual surges in tradePage | 63• Other considerations – strikes, natural disasters and world events can causecertain products to become popular and/or unpopularWhere monitoring activity highlights the need to modify reordering, two basic optionspresent themselves:• Number one – order at the same frequency, but order correspondingly more orless• Number two – order the same quantity as usual, but order more or lessfrequently, as appropriate.Variations to your normal ordering regime may involve extra costs to the business, so you willneed to clarify this with your supplier before making your decision.Stock SecurityStock security is an important part of minimising losses for a business. Ensuring that your productsare safe and secure will allow for more accurate records of stock levels, which in turn will also allowan easier process for determining if anything is missing.When talking about stock security, the biggest concern is theft of products. Theft from a businesswill occur from two different areas.Internal theft is where people working with the business are the ones performing the theft, andexternal theft, where people from outside the business steal from it.Dealing with internal theft is a delicate and serious process. There are some ways to get ahead of thecurve by informing all employees about the anti-theft security measures before anything goeswrong. This should help reduce the likelihood of internal theft.Procedures for securitySafe employee hiringThere are several things that you can do prior to hiring a new employee that could prevent loss inthe future. Below is a list of procedure that could be performed to ensure you get the right personfor the job, thus ensuring minimal loss in the future.Page | 64 Pre-employment screeningWhen applying for a new job most people are requested to provide some details about theireducation and work experience. It is at this state, before an individual is hired, that industry mustmake the effort to determine whether or not the applicant may pose future problems, includingdishonesty. Pre-Employment Investigations are very important and highly recommend.Criminal recordsSuch background information is usually not available to employers. Most police departments areprohibited by law from disseminating such information outside of official channels. Federal lawprohibits any criminal justice agency that receives federal funds from supplying such information.In spite of the foregoing, such data very often does “leak out.” Many Private Investigators havingaccess may supply this information with a consent release form.Former employersIt is standard procedure to make inquiry from previous employers regarding the job applicant.Since it is rare to get other than positive responses, the reliability of such information is to besuspected and weighed as a factor with other sources.Background checksA background check may be done in-house or through an outside agency. However, since the jobapplicant is not required to supply very much personal information these days, it may be necessaryto seek other sources. There are extensive accumulations of private information about individualswho have credit cards, bank accounts, hospital records, former employment, or paid taxes.Obtaining such data may present problems with accuracy and invasions of privacy. Many firmsconsider it foolish and useless to pursue these sources, relying instead on the frankness of personalreferences supplied by the candidate, which is not a very good way to run any business.5 Video SurveillanceThe use of video surveillance and cameras can be more than enough to make employees reconsiderstealing something. You will also need to regularly check the recordings to ensure that they areworking properly.You can also use the videos as a training tool for employees to assist with their work and servicestyle, and providing feedback to the workers by viewing the tapes with them. This will also help indissuading workers from stealing, as it will show them that they are in fact being watched and therecordings are being watched.Make sure the cameras are placed in areas where they can cover every angle of the building, bothinside and outside, especially in areas where people can hide from the view of employees.Lock storage areas when not in use/end of dayKeep all storage areas under lock and key when they are not in use or at the end of the day. Onlyhave a small amount of keys made and entrust them to highly trustworthy staff, such as supervisorsand managers.5 | 65Keeping storage areas locked-up will help to deter all but the most committed of thieves, so it is auseful security system to have in place.Perform a product inventoryProduct inventories, or stocktakes, are useful in showing what stock is on hand. You will need to useinformation gathered from delivery receipts, order forms, and sales, as well as from previousinventories, to determine what should be stored in the workplace. You will then need to takeinventory of what stock is stored in the workplace and compare the results.Perform these inventory checks at random intervals to prevent any employees from knowing whenthey are going to happen, and stealing from the store after the check has been performed.Any discrepancies will need to be investigated, as missing stock could be a sign of either mistakes inthe orders or sales, or internal theft.Trash ControlA common way that internal theft occurs is through the use of the garbage system. Employees willuse bins to hide their stolen goods and come back for them later. You can stop this by ensuring allbins are kept inside, or in an enclosed area, during business hours.You can also perform random checks on the bins for any stolen goods as you see fit.All outside dumpsters will need to be kept locked during non-business hours, or when they are notneeded if practical.If You Suspect TheftDespite your best efforts, there will still be times when dishonest employees will find new,unthought-of ways to steal products and cash from the business. If you suspect that an employee isresponsible for a theft, call your local police department.Don’t jump to unwarranted conclusions, as a false accusation could result in serious civil liability.66 | 66External theftExternal theft is defined as those losses that occur from a source outside the company or store.Externally caused losses are increasing each year for many industries.For the hospitality industry, particularly restaurants, shoplifting isn’t as big of a concern, which ispartially due to the nature of the industry. However, the biggest concerns are theft of products fromstorage areas, customers ordering and not paying, and cash robbery.The best ways to prevent these from happening is to ensure that all storage areas are secured andunder surveillance, making customers pay upfront for their orders, and having well thought outprocedures for dealing with robbery.StocktakesHaving the right stock at the right time is critical to successful trade. Knowing exactly what stock youare holding and its value is also essential. With any system, automated or manual, errors can occur.Most businesses will have in place mechanisms to control and capture any variations that occur asan on-going practice throughout the year. But a complete comparison between physical stock andbook stock only occurs with a full stocktake. This is when every item in your location is counted,valued and compared to expected stock quantities and valueStocktakes are performed:• As an audit requirement• To monitor a store’s performance• To monitor shrinkage• Calculate gross profitPhysical Stock – the stock you actually have in the store (on hand).Book Stock – the value of stock on hand according to the company’s books. It is a result of all thecalculations of entries and transactions that have been processed through the company’s books.Book stock value includes:• The value of stock purchased• Price change reports and adjustmentsPage | 67• MarkdownsOnce a Stocktake is completed the physical stock count results are compared to the book value. Thisdifference between the physical stock count and the theoretical book value is called shrinkage.Shrinkage is classed into two categories:• Known Shrinkage – when it has been accounted for, e.g. when we mark an itemdown or can tell that something has been stolen and we record it as waste.• Unknown Shrinkage – unaccounted for or unrecorded waste, e.g. internal theftIf we can manage the ‘known shrinkage’, it is fair to assume that when a stock take is completed andshrinkage is established, the majority of this result is from error or theft.Companies do plan for a certain percentage of loss in the business and budgeting.ValuationStock valuation is a process used to determine how much it costs to store stock. There are a fewmain methods used to determine stock value, cost, and profit and these include:• FIFO – values stock based on the oldest stock selling first, which will give a higherinventory value, as the oldest stock won’t reach the end of its life cycle, leading toa loss. Food businesses will tend to use this one as it relates to good stock rotation• LIFO – Last In, First Out, this method assumes that stock is sold with the neweststock first. This will lead to a lower inventory value, but will be more realistic inthe profit valuation• Average cost – this calculates the average cost of stock and makes the valuationfrom that number. It is a far easier method than the others and is fairly balancedso it won’t over or underestimate the inventory value, but it is less accurate. Smallbusinesses prefer this methodKeeping detailed records of these valuations is important for tracking profits and costs within thebusiness.Page | 68Page | 69Use of stock control equipment and software where appropriateStock control uses a variety of equipment and software to accurately track stock levels. The mostcommon are computers and handheld devices that can be used to enter the stock data into aspreadsheet. This spreadsheet can then be used to calculate the difference between what wasrecorded at a similar time.A computerised stock control system that uses stock control software is a great tool for businessesthat have many different types of stock. There are many useful features of using stock controlsoftware, such as:• Additional systems integrated into the stock control system, such as invoicing,accounting, and purchase order processing. What this means is you only have toinput the data once, and all of the integrated systems will take their informationfrom what you entered• Automatic stock monitoring, which allows for an order to be automatically placedwhen the re-order level is reached• The ability to identify the best suppliers for your needs• Barcoding systems to speed up processing and recording• Radio Frequency Identification (RFID) which enables individual products orcomponents to be tracked throughout the supply chainPage | 70Specific industry sector, types of:Computerised stock control systems; their functions and featuresA computerised stock control system is a useful feature to have for a business as it has manybenefits over a manual system, including:• Easier to store and retrieve information• Easier tracking of stock and stock values• Capability of tracking a larger amount of stock• Automatic stock monitoring• Automatic re-ordering of low stockComputerised stock control systems will have all of the same functions as a manual system, with agreater emphasis on efficiency, as it will be able to do everything the manual system can but faster.It is important to note that a computerised system is only as good as the information that is enteredinto it. Ensure the figures are accurate before finalising it to ensure that all calculations are correct.Electronic equipment used for stock control; their functions and featuresStock control uses a variety of electronic equipment to track stock and enter data into stock controlsystems.Some of the electronic equipment used in stock control can include:• Barcode scanners – these handheld devices are used to scan barcodes on stockwhich can then be entered into a system to count the stock and track otherimportant information such as use-by-dates and other product information• Handheld computer – this device can be linked to the stock control system toallow access to it without having to return to a desktop computer. They allow foreasy data entry during stocktakes and can be paired with a barcode scanner toremain mobile while tracking stock• Barcode printer – a barcode printer is useful for creating your own labels for stockto enable easier stock tracking and identificationPage | 71Stock recording documentationDocumentation for the recording of stock may include everything talked about previously, as well as:• Inventory lists – these are lists of your stock items that you have in storage• Stocktake reports – reports from a stocktake that was conducted; should includeinformation about what products you have, their quantities, and the differencebetween what was recorded this time and previously• Sales records – used to determine which stock is fast moving, and which is slowmoving. Will also give you an idea of which stock makes the most profitPage | 72Safe and correct use of equipmentWhen using any equipment, be it for stock control, manual handling, production equipment, it isimportant to follow all safety instructions and manufacturer recommendations for the safe andcorrect handling of this equipment.Using equipment safely is an important part of any worker’s job role, as being safe in the workplaceis a legislative requirement of everyone.The workplace is a heavily regulated environment. WHS/OHS legislation and regulations enforceduties and requirements on all organisations. These are aimed at reducing workplace injuries andwork‐related disease. Codes of Practice and Guidance Notes provide an explanation on how to meetthe WHS/OHS responsibilities.All workers should understand the basic requirements of WHS/OHS legislation, codes of practice andother requirements applicable to the activities, operations, products or services in their work areaand explain relevant obligations to the other people in their workgroup.Knowing how to safely and properly use equipment in the workplace will help to reduce the risk ofinjury from an equipment related incident.You will be able to gain information on how to use equipment safely and correctly fromorganisational procedures, manufacturer documentation, supervisor instructions, and equipmentuse training.Page | 73summaryNow that you have completed this unit, you should have the skills and knowledge to check and takedelivery of stock and appropriately store, rotate and maintain the quality of stock items.If you have any questions about this resource, please ask your trainer. They will be only toohappy to assist you when required.Page | 74References“Better Health Channel.’ (n.d.) Web. 14th Feb 2019“Virginia Commonwealth University, Safety Risk Management.’ (n.d.) Web. 14th Feb 2019“Prevent Pests and Please the Health Inspector.” By Patrick Copps. Web. 14th Feb 2019“Control Linen Laundry.’ (n.d.) Web. 14th Feb 2019…“Business Loss Prevention Techniques.’ (n.d.) Web. 14th Feb 2019“What You Can Do To Prevent Theft In Your Restaurant.’ (n.d.) Web. 14th Feb 2019


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