Operations02/15/2026
Inventory & Procurement Management
Don't let your money sit in storage or end up in the trash
5-10% Avg. Ingredient Shrinkage40% FIFO Reduces Waste15 min Daily Count2-3 days Optimal Par Stock
Every ingredient sitting in your fridge or storeroom is money standing still. And if it spoils before being used, it's money thrown in the trash. In Vietnamese F&B, ingredient waste and shrinkage typically account for 5-10% of food costs — and in poorly managed operations, it can climb to 15-20%. That's the difference between profit and loss. Good inventory management isn't complicated, but it requires daily discipline: know what you have, order only what you need, use what you bought first, and track everything.
Key Inventory Concepts — Explained Simply
First In, First Out
FIFO
Always use older stock before newer stock. When restocking, put new items behind old ones. This single habit reduces waste by up to 40%.
2-3 days
Par Stock
The ideal amount of each ingredient to have on hand. Too much = waste. Too little = running out mid-service. For most F&B, 2-3 days of supply is the sweet spot.
15 min/day
Inventory Count
A quick daily count of high-value and perishable items. Full inventory weekly. It takes just 15 minutes a day but saves thousands in undetected losses.
< 3%
Waste / Shrinkage Target
Total ingredient loss (spoilage + over-portioning + theft) should stay under 3% of food cost. Above 5% means there's a serious problem to investigate.
Purchase Frequency by Ingredient Group
Fresh Vegetables & HerbsDailyShort shelf life (1-2 days). Buy only what you need for today and tomorrow. Build relationships with nearby market vendors for morning delivery.
Meat, Seafood & Dairy2-3x per weekFridge life 2-3 days. Order Monday-Wednesday-Friday or similar rhythm. Always check delivery temperature (< 4°C) and packaging integrity.
Coffee, Tea & Beverages1-2x per weekLonger shelf life but quality degrades. Coffee beans are best used within 2-3 weeks of roasting. Keep sealed in cool, dry storage.
Dry Goods & Packaging1-2x per monthRice, noodles, sauces, spices, cups, bags, napkins. Bulk ordering saves 10-15% but ensure storage space. Watch expiry dates on sauces.
Daily 15-Minute Inventory Process
- >Step 1: Count high-value items (meat, seafood, specialty ingredients). Compare to yesterday's closing count minus today's usage. Flag any discrepancies immediately.
- >Step 2: Check perishables for freshness — smell, color, texture. Anything questionable gets tossed. It's cheaper to waste VND 50K of herbs than lose a customer to bad food.
- >Step 3: Update your par stock list. Mark items that need reordering. Send purchase orders to suppliers by 10am so deliveries arrive before the next day's service.
- >Step 4: Log everything in a simple spreadsheet or inventory app. Date, item, quantity on hand, quantity ordered. This 2-minute log creates data that saves millions over time.
- >Pro tip: Assign inventory to ONE person per shift. When "everyone" is responsible, no one is. Rotate the duty weekly to keep it fair and catch discrepancies between counters.
Common Causes of Ingredient Loss
No FIFO discipline
New stock gets placed in front of old stock. Older items get pushed to the back of the fridge, expire, and get thrown away. Label everything with dates and enforce FIFO daily.
Over-ordering fresh items
Buying 3 days of vegetables "just in case" when you only need 1 day. Result: 30-40% of fresh produce wilts and gets tossed. Order daily based on actual sales data.
Inconsistent portioning
Without standardized recipes and portioning tools (scales, measuring cups), each cook uses different amounts. A 10% over-portion across all dishes = 10% higher food cost.
Not checking deliveries
Accepting deliveries without verifying weight, quantity, quality, and temperature. Suppliers make mistakes (or cut corners). Check every delivery against the purchase order.
Internal theft or unauthorized consumption
Uncomfortable to address but real. Staff meals should be policy (controlled portions), not "grab whatever." Lock high-value items. Random spot-checks deter theft.
Supplier Negotiation Tips
- >Maintain 2-3 suppliers for each major category. Never depend on a single source — when they raise prices or run out, you need alternatives. Competition between suppliers works in your favor.
- >Buy seasonal produce when it's abundant and cheap. Vietnamese markets have clear seasonal cycles. Plan your specials around what's in season — lower cost, better quality, fresh story for marketing.
- >Pay on time, every time. Reliable payment builds trust and earns you priority treatment: first pick of the best stock, flexible credit terms, and willingness to accommodate rush orders.
- >Bulk-buy dry goods and packaging monthly. Items like rice, noodles, cooking oil, cups, and napkins have long shelf lives. Buying in bulk can save 10-15%, and suppliers often offer free delivery for larger orders.
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