Case Study 1
| 22 June 2010
COMPLAINT
The operator noticed a drastic drop in net profit margins over a six month period. The most significant aspect was an increase in cost-of-sales.
THREE-MONTH ANALYSIS
| Turnover | Constant |
| Patronage | Constant |
| Stock shortages | Up |
| Cost of sales | Up |
| Gross profit margin | Down |
| Staff Costs |
Constant |
| Net Profit |
Down |
COURSE OF ACTION
Digitot was called in to do analysis and provide a solution. A Digitot management system was installed for a four week period. Six Digitot 604 units were installed to monitor all spirit liquor brands and two Digiflow systems with 10 flowmeters were installed to monitor the soda fountain and draught beer dispensing.
EXPLANATION
It was discovered that outlet employees were dispensing drinks and not ringing up sales at POS. It was also noticed that often staff members were issuing doubles and charging for singles. Overpouring and spillage was also a major factor when it came to soda fountain and draught beer control.
THE DIGITOT BENEFIT
As drinks were dispensed (spirits through Digitot 604 and soda fountain and draught beer through Digiflow), the figures were recorded on the Digitot Back Office Management System which was reconciled with the information recorded on the POS system. Reports were generated pinpointing the following:
- WHEN the stock went missing
- WHO was responsible for the missing stock
- WHAT stock went missing
- HOW much stock went missing
RESULT
An increase in gross profit margin of over 21%!
