Your phone rings. It's your beverage supplier. "Hi, we need to do an audit of packaging held at your location. It's routine. Can we come Thursday?"
Your heart sinks. Do you know exactly how many kegs you have? Can you produce records proving it?
Most hospitality business owners panic at this moment. But an audit doesn't have to be stressful — if you're prepared.
What is a packaging audit?
A packaging audit is when a supplier (or their representative) visits your location to physically count the packaging they've loaned to you. They compare the count to their records. If the numbers don't match, there's a problem.
Audits happen for several reasons:
- Routine compliance: Some suppliers audit all customers once per year as part of standard practice.
- Debt verification: If there's a dispute about deposits owed, they audit to settle it.
- Risk assessment: If you've had high loss rates, they audit to understand what's happening.
- Contract requirement: Your supply contract may require regular audits.
How to prepare in advance
1. Keep accurate records
The most important preparation is done before the audit is even requested. Keep daily records of:
- Every delivery (date, items received, quantities)
- Every return (date, items sent back, quantities)
- Any damaged items (description, when reported)
These records are your defense. If your count doesn't match the supplier's, records show what happened.
2. Do a physical count
The night before the audit, physically count every package you have. Kegs, crates, containers — everything. Count twice to ensure accuracy. Write it down.
3. Gather your documentation
Collect:
- Delivery invoices from the supplier for the past 12 months
- Your own records of receipts and returns
- Any correspondence about damaged items or losses
- Photos of current stock (helpful for large quantities)
Organize these chronologically. They prove what you received and returned.
During the audit
When the auditor arrives:
- Be transparent. Show them everything. Don't hide or shuffle things around.
- Assist with the count. They'll count. Your staff should help. Make it smooth.
- Compare records together. When they're done, sit down and compare their count to their records and to your records.
- Identify discrepancies. If numbers don't match, discuss why. Damaged items? Unreturned goods? Note it down.
- Get documentation. Ask for a written audit report. This protects both parties.
What if there's a shortfall?
If you're missing packaging, the supplier will want payment or for you to return items of equivalent value. Don't panic. This is why audits happen — to identify and resolve issues.
If the shortfall is small and you have records explaining it (damaged items you reported, old returns you documented), the supplier is usually reasonable.
If the shortfall is large and unexplained, you have a bigger problem — but at least now you know about it.
Never be unprepared for an audit again
Proper records make audits quick and painless.
Start with Reggy →The takeaway
An audit request is actually good news. It means your supplier is paying attention to their assets. It's a chance to verify that your records are correct, recover any money owed to you for damaged items, and improve your tracking going forward.
With proper documentation, an audit takes 30 minutes to an hour. Without it? Hours of stress and potential financial disputes.
Start keeping records today. The next audit will be a breeze.