The ‘Dynamic Par’: Ordering with a purpose
This case study takes a closer look at the value added by the ‘dynamic par’ portion of the Bar-i liquor inventory software. You as a bar owner or manager are likely aware of the benefits of ‘smart’ ordering and are equally familiar with the pitfalls of poor ordering. When bars order with a purpose they become privy to discounts and a well-stocked liquor inventory, but the affects of poor ordering practices can result in overpaying for product and not having the appropriate liquor inventory available.
In the graphic below you will see a portion of the report generated by the Bar-i liquor inventory software that aids in the ordering process. Based on a bar’s usage in the past three liquor inventory cycles the Bar-i report provides a 14 day ‘dynamic par’ (highlighted). The column to the left of the dynamic par labeled ‘stock’ shows the current stock on hand and is shaded gray if the individual item is below the 14 day par. You will note that this report reflects the need to order Avery White Rascal, Coors Light Can, Crispin Cider etc. Using the dynamic par as a guidance tool ensures that the bar will never unexpectedly run out of product. It also provides actionable data that will aid in making smart decisions regarding liquor inventory. For instance, items that maintain a low par due to low demand will be more visible and decisions can be made about whether or not to replenish. Also products that are in higher demand will be noted and can be ordered at higher volume. This ability to order larger quantities of what is actually consumed puts bar manager in the unique position to negotiate prices more confidently.
The bar in the graphic below – not surprisingly – negotiates some of the best prices for their liquor purchases of any client we work with. This, of course, is a product of the massive volume they do but it is also a byproduct of their use of the dynamic par. Managers are very clear on what and how much they need to order giving them leverage in pricing. While this is just one example of the success of the ‘dynamic par’ there are many benefits including the ability to minimize inventory which releases otherwise tied up money. Are you ordering with the confidence that comes with knowing exactly what you need? Do you have unnecessary money tied up in inventory sitting on your shelves? Find out more about our inventory system and how it works to save you money.