Operations8 min read

Inventory Management Techniques to Reduce Food Waste

Much food waste starts with ordering decisions. Better inventory management prevents waste before it happens.

FT

FoodSight Team

January 2025

Food waste often starts long before food reaches the bin—it begins with ordering decisions that bring too much food into the building. Better inventory management attacks waste at its source.

The Ordering-Waste Connection

Over-ordering → Spoilage: Buy more than you need, and excess expires before use.

Inaccurate pars → Chronic overstock: Par levels set too high mean perpetual excess.

Promotional ordering → Usage mismatch: Buying for deals that don't match demand.

Delivery timing → Freshness loss: Orders arriving too far before needed.

Right-Size Ordering

Demand-based ordering: Calculate order quantities from:

  • Historical usage data
  • Upcoming bookings/events
  • Seasonal adjustments
  • Current inventory levels

Rather than: "We always order X cases."

Frequent, smaller orders: Where economically viable, more frequent deliveries reduce stock levels and spoilage risk. The trade-off is delivery cost and ordering time.

Just-in-time for perishables: High-spoilage items ordered close to use. Accept higher per-unit cost for lower waste.

Par Level Optimisation

Par levels should be:

  • Based on actual usage data
  • Reviewed regularly (at least monthly)
  • Adjusted for seasonal patterns
  • Different for different items

Par level formula: Daily usage × Lead time + Safety stock = Par level

Where safety stock reflects volatility and criticality.

Inventory Counting

Regular counts: Know what you have before ordering.

Perpetual inventory: Track ins and outs continuously for real-time visibility.

Cycle counting: Count a portion of inventory regularly, covering everything over time.

Technology assist: Barcode/RFID systems reduce counting effort and error.

Supplier Management

Work with suppliers on waste reduction:

  • Discuss order flexibility
  • Explore smaller package sizes
  • Request better date codes
  • Negotiate return policies
  • Consider consignment arrangements

Menu should align with inventory management:

  • Dishes that use common ingredients
  • Specials that utilise excess
  • Flexibility to adjust based on inventory
  • Cross-utilisation built into menu design

Technology Tools

Modern inventory management systems provide:

  • Automated reorder suggestions
  • Usage trending and forecasting
  • Expiry date tracking
  • Integration with ordering systems
  • Waste correlation analysis

Learn more about kitchen efficiency and how waste data informs inventory decisions.

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