FAQs: What are the benefits of using Par & Re-Order Points?
PAR levels and reorder points help you automate replenishment, reduce manual work, and keep inventory aligned with actual demand. When used consistently, they can lower inventory costs, reduce waste, and save time.
Inventory and working capital
PAR-based replenishment helps reduce on-hand inventory without reducing service levels. Lower inventory levels can also free up working capital.
Waste and spoilage
For food and beverage operations, PARs help prevent over-ordering and reduce spoilage. Ordering based on real usage and delivery frequency can reduce waste and shrink.
Labor and delivery effort
PAR-driven ordering reduces manual ordering tasks and reactive work, such as emergency deliveries and last-minute corrections. Teams spend less time managing orders and more time on operations.
Estimated impact per location (conservative)
For a mid-size stadium or multi-unit food and beverage operation, PARs can help deliver:
Labor and delivery savings: approximately $3,000–$5,000 per year
Waste and spoilage reduction: approximately $1,000–$3,000 per year
Working capital freed: approximately 5–10% of inventory value (cash-flow impact, not direct P&L)
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