Context
A multi-site food production operation running 14 locations and producing over 8,000 meals daily. Centralized purchasing was managed through MarketMan, giving leadership visibility into what was ordered, when, and at what cost.
However, once inventory arrived at a location, there was no system governing how it moved between sites. MarketMan handled purchasing - but transfers, internal consumption, and stock movement were completely untracked.
The Problem
Stock was being purchased correctly, but it was not controlled after arrival. Inventory moved between locations constantly - and none of it was recorded.
- No formal transfer tracking between locations
- Items moving between sites without any records or documentation
- No accountability for who sent, received, or consumed stock
- Cost leakage that could not be traced to any single point
- Inaccurate food cost calculations due to unrecorded movement
The result was a gap between what was purchased and what was actually used - a gap that grew wider every week and made accurate food costing impossible.
The System Fix
We designed and implemented a five-part inventory control structure that closed every gap between purchase and consumption.
1. Defined Inventory as a Controlled Asset
Inventory was reclassified from a passive resource to a controlled asset. Every item that entered a location was logged, tracked, and assigned to that location until formally moved or consumed.
2. Introduced Transfer Logging System
A structured transfer log was introduced requiring every movement of stock between locations to be documented - what was sent, how much, from where, to where, and when.
3. Linked Transfers to Accountability
Every transfer required dual accountability - the sending location confirmed what left, and the receiving location confirmed what arrived. Discrepancies were flagged immediately.
4. Captured Non-Sales Consumption
Staff meals, event allocations, tastings, and waste were given their own tracking categories. These were no longer invisible - they were recorded alongside transfers and purchases.
5. Integrated with Reporting Structure
Transfer and consumption data was integrated into the daily reporting structure so leadership could see the full picture - purchases, transfers, non-sales usage, and actual consumption - in one place.
The Result
- Inventory fully traceable from purchase through consumption across all 14 locations
- Reduced unaccounted loss significantly within the first reporting cycle
- Improved food cost accuracy by capturing previously invisible movement
- Clear ownership at every stage - purchasing, receiving, transferring, consuming
- Faster discrepancy identification with same-day flagging of mismatches
"Most operations believe inventory control is about purchasing. It is not. Control is lost after the purchase."