Par levels are the foundation of smart ordering. Get them right and you'll stop running out of the products that matter while also stopping the habit of over-ordering things that don't move.
What is a par level?
A par level is the minimum quantity of a product you need to have in stock at any time. When your stock falls below that level, it triggers a reorder.
The term comes from the word "parity." The par level represents the point at which your stock needs to be replenished to keep trading without risk of running out before the next delivery arrives.
Why par levels matter
Without par levels, ordering is driven by memory and gut feel. Managers reorder what they remember running low on and hope for the best. This leads to two predictable problems: running out of fast-moving products mid-service, and accumulating dead stock of slow movers.
Par levels turn ordering from a guessing game into a data-driven process. When your stock management system knows your par levels, it can flag low stock automatically and generate suggested orders after each count.
How to calculate par levels
Start with weekly usage
Look at how much of each product you typically use in a week. If you go through four cases of Peroni in a normal week, that's your baseline. Be honest about what a busy week looks like, not just an average one.
Factor in your delivery frequency
If your supplier delivers twice a week, you need less buffer stock than if they deliver once. Your par level needs to cover you from one delivery to the next, with a safety margin on top.
Add a safety buffer
Deliveries get delayed. A bank holiday puts pressure on your busiest products. Build in a buffer of roughly 20 to 30 percent on top of your expected usage between deliveries. For your most critical products, make that buffer larger.
Set a full stock level as well
Your par level is the minimum. Your full level is the maximum you want to hold. Ordering up to your full level when you drop below par keeps your stock topped up without over-ordering.
Review par levels regularly
Your trading pattern changes with the seasons, with events and with changes to your menu. Par levels set in January may not be right in July. Review them quarterly at minimum and adjust based on actual usage data.
How Stockt uses par levels
In Stockt, you set minimum and full thresholds for every product in your inventory. After each stock take, the system compares your counted stock against those thresholds and generates suggested order quantities automatically.
The suggested orders also factor in your weekly usage averages, so they reflect how fast each product moves rather than just the raw gap between your current stock and your minimum level. Managers review and adjust before anything gets submitted.
Stop ordering from memory.
See how Stockt uses your par levels to generate smarter orders.