Liquor Inventory Case Study #4

The liquor inventory audit report shown below is from a liquor inventory audit we completed for a client who recently restarted using our liquor inventory system after deciding to do their liquor inventory in-house for a while. The client had previously used our liquor inventory system but decided to discontinue service on February 2nd 2011. The graphs on the right of the report page show than on their final liquor inventory audit in 2011, 93% of product was accounted for (top graph) and the difference between their actual and achievable liquor cost was just 1.5% (middle bar graph). This gap means that their liquor cost was 1.5% higher than if there was no liquor inventory shrinkage at all (100% Accountability). The client requested that we come back in having noticed their liquor cost having risen quite a bit. The first audit when we restarted was completed on April 2nd 2012 and showed that only 75% of product was being accounted for. The fact that 25% of product being used was not being sold caused their actual liquor cost to be 6.8% higher than achievable. As of June 3rd 2012, we had completed two more liquor inventory audits for them. Accountability had risen to 92% and the performance gap was now just 1.9%. Comparing the liquor cost during the most recent audit to when the client restarted using our liquor inventory system shows a fall in liquor cost of 5.7%. I think it’s fair to say that the owners were pleased with their decision to start using our liquor inventory system again after a 14 month break given the effect on their liquor cost and profits once they restarted with us.

liquor inventory system
liquor inventory system
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Posted in Bar Liquor inventory case studies