Stock Taking at Cilantro: Efficient Stock Management and Recommended Procedures

This article discusses the unique purchase requirements, storage and dispensing of food and beverage at Cilantro, a coffee café based in Moorabbin, Australia. It explores the recommended system of stock taking and efficient stock management techniques, as well as the outline of purchasing and stock procedures for Cilantro. The article also recommends the continuous stock taking and pick accuracy methods for the restaurant.

Running heads: STOCK TAKING AT CILANTRO
Stock Taking at Cilantro
Name of the Student:
Name of the University:
Author Note:

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Table of Contents
Introduction:....................................................................................................................................2
About Cilantro:................................................................................................................................2
Unique purchase requirements, storage and dispensing of food and beverage:..............................2
Types of stock taking.......................................................................................................................3
Recommended system of stock taking:...........................................................................................4
Efficient stock management:.......................................................................................................4
Lower energy usage and labour cost:..........................................................................................5
Outline of purchasing and stock procedures:...................................................................................5
Conclusion:......................................................................................................................................6
References:......................................................................................................................................7

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Introduction:
One of the most important components of manufacturing processes is stock taking and
maintaining. Since, stocks of raw materials, work-in-progress and finished goods form
considerable portion of the current assets of manufacturing business organisations, they maintain
them strategically. The paper revolves around an Egypt based restaurant called Cilantro who is
present Moorabbin, Australia. The opens by introducing the restaurant to the readers and then
goes on to explore its purchase and storage requirement pertaining to inventory. Then next
section point out the appropriate stock taking method.
About Cilantro:
Cilantro is a coffee café based in Moorabbin which offers food and refreshments and also
trains students perusing hotel management courses.. The aim of the restaurant chain is to provide
its customers with high quality food products. The restaurant chain also aims to bring about
continuous innovation in its product line. Cilantro maintains highly skilful staff members who
provide superior services to the customers which enhances the latter’s satisfaction. The product
line of the restaurant can be divided into entrée, main and dessert. The entrée segment consist of
light food items like French onion soup while the main consists of items made from lamb and
chicken. The dessert section consist of items like lemon tarts and ice creams.
Unique purchase requirements, storage and dispensing of food and beverage:
The uniqueness in the purchase requirements, storage and disposal of food items which
Cilantro follows can be traced from the product line of the restaurant. The main product of the
restaurant consists of food items which are perishable. Thus, the restaurant in order to minimize
spoilage of stock of raw materials and losses incurred thereto, has to manage the storage of raw

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materials for its products like raw meat and raw fish strategically to minimize rotting. Again
while disposing the degenerated raw material (which cannot be totally prevented), the restaurant
has to ensure that its waste disposal causes minimum environmental pollution (Chen et al.,
2015).
One can also point out that the Cilantro uses chemicals, spices and flavouring agents
while preparing food items. The restaurant chain has to ensure that these spices and flavours are
disposed in environmental friendly ways.
The third category of items which the restaurant requires to store is extra finished
products. The restaurant requires to store them to keep them fresh and in proper conditions. It
also needs to dispose waste finished products in environment friendly ways (Bolton, 2014).
Types of stock taking
There are five types of stock taking techniques that are as follows:
Periodic stock account-
It is done on a quarterly, half-yearly or monthly basis and the stock is checked for a
period of over one or two days. This process allows in recording the physical stocks on stock
sheets or scanning and comparing them with the file for stock validation (Titze et al., 2016).
Continuous or Perpetual Stock Count-
This type of stock taking technique is done throughout the year on a prearranged plan of
action. Some of the stocks are counted on a monthly basis then some are counted on a weekly
basis and the rest on daily basis. This helps in showcasing that the stocks are recorded for all the
items so that the process of validation can be done (Bakker & Demerouti, 2017).

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Pick accuracy-
This method helps the business in checking when the stocks are received from the
suppliers or while it is being issued to the customers. This method helps in presenting the checks
of the stocks when the items are coming in or going out within the system.
Stock out validation-
This method helps in validating the particular stocks that are finished or are present at a
minimum level within the organization. This validation is mostly done by the employees who are
present within the organization. These stocks are then listed and reordered so that it can help in
replenishing the finished stocks (Ellis, 2015).
Annual stocktaking-
This particular method helps in taking up the stocks at an annual basis. This results in
closing the warehouses for a few days, as the stocks are being counted for the entire year. Most
of the invoices and the receipts that are present for the stocks are cancelled so that the counting
of the stocks can be completed in a proper manner. After the stocks have been recorded it is them
matched with the stock validation file so that it can be verified (Van Dellen, Sivaprasad & Bas,
2015).
Recommended system of stock taking:
The restaurant will be using the stock out validation process, as it will help them in
understanding the particular stocks that are finished and needs to be replenished within the
system. This will help the restaurant in understanding the requirements of the company in an
efficient manner. This would also result in spending fewer amounts of resources by the

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restaurant, as they just need to order the stocks that need to be replenished within the system.
The restaurant will have the following benefits:
Efficient stock management:
The stock out validation technique will help the organization in understanding the
replenishments of the stocks that are required within the system. This will help the company in
understanding the importance of the stocks that are being demanded by the customers, which
will help in ordering the important goods on a priority basis. It will also prevent the obsolescence
of the products within the restaurant. The raw materials of the company that is the food items
will always be available within the restaurant so that it can help in serving the customers with
their choice of menus. It will also prevent the loss of the raw materials and the finished products
due to the effect of degeneration.
Lower energy usage and labour cost:
The stock out validation for the restaurant will result in saving the labor and the use of
energy as well. The raw materials that will be ordered on the first basis will be used up on a
priority basis as well before the next stock of materials is being ordered by the company. An
example of this would the food items that are being ordered by the company first will help in
being consumed first as well so that up on its completion the next order of stocks can be ordered
by the company.
Outline of purchasing and stock procedures:
The following are the procedures for purchasing and holding which Cilantro can adopt:
1. The restaurant should use methods like economic order quantity or just in time methods
to order stock of raw materials.

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2. It must specify the particulars like quality parameters, amount and specifications while
ordering stocks.
3. The restaurant must take precaution of maintaining proper temperature conditions and
hygiene while holding stock.
4. It must check the warehouses on regular and ensure that they follow risk management
norms.
5. It must employ staff trained in handling stock to maintain stock of raw materials and
finished goods.
Recommended type of stock taking methods for Cilantro:
One the grounds on above analysis of different types of stock taking methods and specific
nature of the business of Cilantro, the two following stock taking methods can be recommended
for the restaurant:
Continuous stock taking:
Cilantro must adopt the continuous stock taking method and take stocks on regular basis
say weekly. This would enable the restaurant that it is able to make maximum usage of raw
materials before they degenerate. Thus, this process would enable the food business to minimise
losses it incur due to degeneration of raw materials.
Pick accuracy:
Cilantro must use pick accuracy stock taking system while taking delivery of raw
materials. This would ensure that the suppliers supply raw materials in appropriate condition and
at the agreed price between the two parties (suppliers and restaurant).

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Conclusion:
Therefore it can be concluded that Cilantro can use the technique of stock out validation
so that it can efficiently use up the raw materials and then order the next set of materials. This
will result in keeping a check on the process of orders and the employees will be able to inform
the management regarding the number of orders that are being made on a monthly basis
regarding the raw materials. It will also allow the management in allocating the resources in a
proper manner so that there can be a count o the raw materials that are being ordered.

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References:
Bakker, A. B., & Demerouti, E. (2017). Job demands–resources theory: Taking stock and
looking forward. Journal of Occupational Health Psychology, 22(3), 273.
Bolton, D. L. (2014). New menu labeling requirements for retail food chains: Possible impact on
small business restaurants. The Entrepreneurial Executive, 19, 105.
Chen, R., Smyser, M., Chan, N., Ta, M., Saelens, B. E., & Krieger, J. (2015). Changes in
awareness and use of calorie information after mandatory menu labeling in restaurants in
King County, Washington. American journal of public health, 105(3), 546-553.
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Ellis, S. (2015). Measuring Traditional Skills Taking Stock Of What We Have Before We Lose
It: Craft Statistics a Way Forward. Alliance for Artisan Enterprise, The Aspen Institute.
Ford, T. (2016). Pegasus Legal Services for Children: Taking Stock of a Rebellious Non-Profit
Practice in New Mexico. Clinical L. Rev., 23, 107.
Titze, J., Huber, H. W., & Hamel, C. (2016). The potential of wort concentrate used for beer
production to enable cost optimisation in craft breweries. Yeast (dry yeast), 10, 10-00.
Van Dellen, S., Sivaprasad, S., & Bas, T. (2015). The value effects of changes in leverage:
Evidence from the Travel and Leisure sector.