Guest Writer

No more cost control headaches

Regular audits is what saves the day when maximising profits while keeping costs to minimum isn't that easily achievable. By Manishaa Mishraa

However tedious, having audits eases not just cost control but also delivers detailed analysis of what changes need to be made and how they are to be made. Creation of software can simplify all that.

The software has basically been designed to connect a hospitality outlet situated in any part of the world. With software like this, everything from billing to operations as well as check on the total costs of the establishment can be monitored. The software allows generating a daily report system that points out where costs can be controlled.

The system can be used to track details of raw materials used to the final consumption by the guests, pilferages and even wastages. The average reduction in costs can go down to 20 to 25 per cent. The data gets transferred at the main server and is then analysed and strategies and steps to control costs are derived.

But before this, it is important to survey the condition in which the business is run. This allows better understanding of the kind of changes that are required and to what extent. The survey needs to be conducted in a stipulated time, the outcome of which will decide as to what the approximate cost is and how it can be improved. The survey will also determine the cost reduction procedures and systems that will help in cost improvement and hence lead to better management. In addition, the track record of such a system is near infallible. However, again it needs to be reiterated that quality cannot be compromised while decreasing the costs.

There are key things that need to be kept in mind while auditing, and that too with the help of monitoring software. These include:

• The data should not become stale. The reports are generated daily and actions need to be taken in accordance otherwise the entire exercise goes waste.
• This also requires correct and adequate interpretation of the data.
• Also in accordance, the system of working also needs to be reviewed and streamlined on a regular basis. This includes F&B reconciliation, conversion of raw materials into finished products, the purchase of the product, the yield factor, etc.
• Even though the software is capable of removing all chances of human error, physical verification is equally important. This can be attributed to the fact that the human mind is sensitive to various circumstances and situations and therefore can make decisions accordingly.

The biggest advantage of a system like this is that it provides a near foolproof fraud detect ability. It allows complete monitoring of all procedures and their adherence. Together with physical verification, pilferages can be pin-pointed to the person involved. Curtailing pilferages is a very crucial aspect of cost control - half the battle is won if pilferages are controlled.

This also brings to the fore the question of the personnel working in the establishment. Apart from eradicating hard feelings, full impact of the software will only occur when the employees are involved in the entire process. It should be the owner's priority to involve them in the entire process and show them the positives of the system. The growth that an auditing system allows is a controlled and a gradual one, crucial for the steady development of the establishment. Growth and profit being the ultimate goal of a business enterprise, auditing becomes the key to its success.

The author is director, Foodesign Hotels & Resorts System
(As told to Sayoni Bhaduri)