PAR INVENTORY DEFINITION
Developing better inventory strategies for success across industries
If there’s one universal truth across all industries, it’s that businesses have things they need to keep track of. Whether retail, restaurants, salons, spas or mobile field services, it’s more important than ever to be able to effectively manage your entire inventory. Historically, this has been a daunting task, requiring managers to juggle various software platforms to oversee their stock. This method results in overworked management and staff and creates a perfect storm for potential leakage in your inventory.
There are many different forms of inventory strategy, and it may be overwhelming to sort between them. In this article, we cover three basic forms of inventory management, offering definitions, benefits, and costs for each:
- Spreadsheets and manual tracking
- Par-inventory tracking
- Point of sale (POS) based solutions
Spreadsheets and manual tracking
Often seen as the traditional model for inventory management, spreadsheets provide data in a neat graphic format. For years the spreadsheets were used in paper format and currently exist in digital formats through programs like Microsoft Excel.
Spreadsheets might not be the ideal centerpiece of your inventory management strategy. They may, however, be a good additional tool to supplement areas that other systems may lack. Similarly, it may also provide a good backup for online data that businesses may be worried about losing.
Get par-level definition with par-inventory tracking
What exactly is par inventory? Par inventory is the inventory quantity that is expected to be on hand between refreshment deliveries. The creation of a par inventory strategy has two requirements:
- Calculating par levels
- Using technological solutions to maintain the calculated level. Both are applied into the below industry standard formula that is used for determining par levels:
PAR level = (Inventory used each week + safety stock buffer) / number of deliveries
Restaurants that use par inventory as their inventory foundation do so because:
The best way to think of par inventory is narrow, but powerful. Establishments in retail may not have a strong need for the assets provided by a strong par inventory definition. For restaurants, however, successful implementation of par inventory can provide excellent profits.
The world of POS inventory management contains a wide variety of options. On one hand, you may be looking at a private solution featuring specialized inventory management tools. On the other hand, you may have a more catch-all version that offers a wider variety of tools. Whichever way you go, it is important to understand that POS systems offer an array of features.
It’s important to understand that no two POS vendors are the same. Although it is common for POS systems to need an internet connection, many provide offline modes that operate without that connection. For that reason, we recommend taking a deep dive or deep look into potential vendors you are considering.
Partner with a POS provider that invites innovative customization
Considering different inventory management strategies is essential when starting your small business, but they can be incredibly rewarding. Whether via spreadsheets, examining par inventory definition or using a POS, good inventory management is a key to entrepreneurial success. An innovative POS provider will take this technology further by helping you become more efficient in all areas of your business.
We at talech would love to help your restaurant introduce helpful technology to assist in implementing a par inventory strategy. Our solutions are scalable for businesses of any size and are designed to grow as you do, allowing us to be your trusted partner every step of the way. Reach out to us today about a free demo and to learn more about what we can do for your business needs.