What is par stock? In the hotel industry, the term par stock is used to determine the demands needed by the hotel on a daily basis, and the minimum amount of supplies needed to fill these demands, in order to ensure smoothness and stability of functions in the hotel.

Importance of Par Stock in Hotels

Par stock is important for the following reasons:

  • Avoid problems like damaging materials because of overstocking.
  • Make sure that supplies are properly delivered continuously.
  • Par stock is important for the efficiency of budgeting.
  • Makes inventory taking more simple.
  • Allows business to properly manage and take good control of inventory.

Inventory Par Levels

Par levels are the estimate for the minimum amount of a certain item that should be available in stock.

In case there is any shortage of any item in stock, meaning that the quantity falls below the minimum amount, an order has to be made in order to cover this shortage. The main reason for the creation of par levels is to maintain a stable ratio of the inventory turnover by making sure that the products are always available in stock in good amounts.

In order to adjust par levels, the ratio of the inventory on hand should be identified, as well as the optimal stock level for every item. The inventory on hand means the ratio of the average balance of inventory that your business sold in the average amount of time (in days). When the inventory on hand is identified, you can know the amount of depletion of each item between delivery by comparing the inventory on hand to the sales made.

The availability of both the inventory on hand and the sales report is a good asset in which you can know how fast you go through the inventory, and hence understand exactly the specific time for orders to be placed and the quantities needed.

Making predictions in par inventory is not easy, so in order to make it easier, it is better to use data from house tools, both front and back, based on the purchases made and the inventory. The SimpleOrder platform is a good option for knowing your par levels easily so you can determine the inventory value and the cost of goods sold.

In order to keep your business stable and be always in control, it is important to focus on the accuracy of the predictions of par levels for any given period of time.

How Par Stock Affects Hotel Operations

Par stock has a great effect on the operations of hotels, and here is how:

  • Utilizing the capital properly is a very important step in order to maintain stable and smooth operation. Improper capital utilization will have negative effects on the operation of the hotel, and the use of par stock will make it less likely for these effects to happen. Par stock is essential for proper investment of capital.
  • Storing inventory could be a major reason for bad consequences, like spoiling of products because of over storage, misuse of products, or even hotel staff stealing products without notice from the people in control, and this could cause great harm to the hotel investment. Par stock is essential here in order to keep the stability of the amount of products in stock, and hence prevent any harm that could be caused by overstocking.
  • Par stock also plays a role in the preparation and cleanness of guestrooms, which makes these rooms more capable of attracting and receiving new guests. The proper supply of linens will make guest rooms always clean and ready, and this stability will always be reached by par stock.
  • The uniform of the staff of the hotel is part of the hotel's image, so a proper supply of uniforms should always be in place without delays, and of course without any dirty uniforms. Doing so will require the use of par stock.

Par stock is essential for keeping the good image of a hotel. It also makes it the best benefit for investments and money and hence guarantees stability and expansion of the company overall.

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