Recovery

  • Pull down top stock
  • Check all boxes for what is inside
  • Refill shelves to reasonable capacity – slide bin tags if necessary
  • Place leftover stock on top shelves
  • Update counts
  • Pull out back room stock
  • Check stock room for additional stock
  • Refill shelves to reasonable capacity – slide bin tags if necessary
  • Place leftover stock either on top shelves or stock room
  • Update counts
  • Face and front
  • Pull items to front of shelves or pegs
  • Items should be in proper location, replenished, and fronted
  • Clean and dust
  • Remove empty pegs and bins
  • Remove boxes on floors
  • Check end caps
  • Bin tags
  • All items should have bin tags
  • No hand written bin tags allowed
  • Bin tags should be placed on plastic backing and on the left side of bins/shelf spaces of items
  • Bin Tag Colors:
  • Yellow – Standard Color Tag
  • Green – Never Out Listing
  • Red – Do Not Reorder Z Flag Or Close-Out Y Flag
  • Blue – Impulse
  • Signs
  • Signage Colors:
  • Yellow – Regular Signage In Aisles – Never Outs
  • Pink – Main Aisle, End Caps, Displays, Sidewalk
  • Lime – Circular/Flyer Sales, Additional Signs Needed
  • Red – Z Flag And Y Flag Close-Outs
  • Orange – In Store Specials
  • Customers should never have to ask how much an item costs.
  • Counts
  • The best way to always have items in stock is to have accurate inventory counts
  • Update incorrect counts as often as possible
  • Short card – insist all staff to use it
  • Frequent zero, negative, and cycle counts
  • Close outs
  • Let your manager know when you have items that need to be reduced in price
  • Overstock
  • Z Flag Items
  • Permission To Z Flag

Inventory Count Accuracy

  • Maintaining count accuracy is ensuring that your in-store computer system always has the correct quantity on hand for every item. Having correct counts is critical to your system’s ability to generate an order. The system uses yours sales history and the weeks’ supply value you select to determine each item’s reorder point. It is compares that reorder point to the quantity on hand and the quantity on order to determine if you need to reorder more. Following the procedures to keep your quantity on hand and quantity on order figures correct is necessary for the computer to suggest an accurate order.
  • The actions of every person in your store, even customers, can affect the accuracy of your on-hand quantities. All associates must be fully trained on your store procedures including cycle counting, receiving, point-of-sale, back-office, and customer service.
  • For example, items being returned to the store are a frequent cause of incorrect counts. If the item is in sellable condition, it must be handled as a regular return. If it is not sellable, it must be handled as a defective return or defective exchange. A defective exchange is when a customer wants an identical item to replace the defective item. A defective return is when the customer wants to return the defective item, but not replace it with the same item.

Return Scenarios

Refund ReasonEffect on QOHEffect on Sales $

ReturnIncreaseDecrease

Defective ReturnNoneDecrease

Defective ExchangeDecreaseNone

Cycle Counts

  • Cycle counting is a method of performing an inventory audit by checking product quantity on a continuous schedule. It is important to count every item in your store at least twice a year. To accomplish this, the store is divided into four-foot sections, with each section defined by a unique location code. These locations are then combined into a number of groups, and the items in each group are counted each. Cycle counts are performed weekly with two sections being reviewed each time.
  • The key purpose of cycle counting is to identify items with an incorrect quantity on hand in the computer, so this issue can be researched, identified, and eliminated. Some of the other reasons cycle counting is important:
  • Improves accuracy of quantity on hand
  • Necessary to generate accurate computer assisted orders
  • Minimizes lost sales
  • Improves customer service
  • Improves accuracy of management reporting and inventory valuation
  • Allows timely detection and correction of errors
  • Identifies high-shrinkage items
  • Replacement of items in proper location codes
  • Reduces year-end inventory write-offs
  • Reduces the need for a physical inventory count of all products at one time
  • Before cycle counts can be performed, recovery of the week’s selected sections must be completed. Those assigned to perform the cycle counts for the week, obtain the assigned sections from the intranet (instructions below). Once the listing is retrieved, the cycle counts are performed. The sections are either manually counted and logged onto a cycle count sheet (Reference Binder) or counted with the RF unit. Regardless of how the cycle counts are performed, manually or electronically, the counts must be verified by another person to ensure accurate counts. If there are shortages in quantities of the items, an attempt must be made to find the missing items. Usually these items are misplaced in different sections or placed in the claims box where the special orders and rainchecks are stored. If the items are not found, the necessary revisions are made. Once this is completed, the counts are logged into the Eagle Browser in PIP. If the counts were counted with the RF unit, then the counts are already recorded and sent to PIP. (The sections must be logged in individually. They cannot coincide with each other.) The reports containing the updated counts are printed through RPI. After this, the counts are posted on the intranet (instructions below) and a copy of each report is stored in the cycle counts binder.

Accessing Cycle Count Sections

  • Log on to the MVL intranet site.
  • Click on the Operations tab.
  • Click on the Cycle Count Program link under Useful Links.
  • Click on the Calendar link.
  • Select store.

Posting Cycle Count Results On Intranet

  • Log on to the MVL intranet site.
  • Click on the Operations tab.
  • Click on the Cycle Count Program link under Useful Links.
  • Click on the Cycle Count Results link.
  • Find store and click on the down arrow of link.
  • Click Edit Item.
  • Enter in results.

Negative Counts

  • An automatically generated list is checked weekly for items in the store that have a negative quantity on hand (QOH). The count can be done throughout the week, but should be completed before the RSO (Suggest Order) date. Negative counts should not be done on freight and receiving days. The report can be accessed at anytime on the Eagle Browser under the title of RIS.
  • Before negative counts can be done, recovery must be performed. This includes checking to make sure none of the items are in receiving or in the claims box where the special orders and rainchecks are stored. If items are found, their counts are recorded. After this is completed, the negative counts are performed. The items with negative quantities on hand are located and counted. The quantities of the items are changed to their correct counts (instructions below). A report of changes is printed and stored into the negative and zero counts binder.

Changing Counts & Running Report

  • Log on to the Eagle Browser.
  • Type in PIP in the Launch field.
  • Click on QPIP F3.
  • Enter in the SKU number and the correct quantity on hand. Click OK. Repeat this for all of the SKUs.
  • Close Program.
  • Enter in RPI in the Launch field in the Eagle Brower. Select print settings and then print the report (spool and print).

Zero Counts

  • The counts are done to ensure that items with quantity on hand (QOH) of zero are recorded as zero so they can be reordered. The counts can be done throughout the week but not on freight and receiving days.
  • Before zero counts can be done, store recovery must be performed. This is done to ensure that the inventory counts in the database are accurate so that the correct amount will be ordered. If the counts are off, then the store will have a surplus/ shortage of supply of the respective items.
  • After recovery is completed, zero count sheets are used to record the SKUs and section numbers of the items with a supply count of zero. These SKUs are entered into the Eagle Browser in the PIP page. Once this is done, the reports are printed through the RPI page. Recounts are done after this as a confirmation measure to verify accurate inventory counts. Recounts employ the reports produced from RPI.

Recording Zeroes

  • RF Unit
  • Scan the SKU from the bin tags of the zero items.
  • If the SKU does not scan, manually enter the SKU.
  • Enter 0 into the Count field. Press FCN and then 3.
  • Manual Count
  • Make a record of all the SKUs that are zero.
  • In the Eagle Browser, type in PIP in the Launch field.
  • Click on QPIP F3.
  • Enter in the SKU number and the correct quantity on hand. Click OK. Repeat this for all of the SKUs.
  • Enter in RPI in the Launch field in the Eagle Brower. Select print settings and then print the report (spool and print).

Staple Items

  • Items that the store should always have in stock. These are items that should always be available to customers.

Promotional Items

  • Items that are being promoted or put on sale. These items usually are staple, seasonal, and/ or new items. They are promoted through store events and advertisements as listed in the sales plans and promotional schedules.
  • In/out items are items bought specifically for the purpose of quick sales through promotions. These items are temporarily in stock and usually are not repurchased unless the sales are immense and the demands are high.

ACE Hardware Sale Plan Preparation & Execution

  1. Ad layouts available in the ACE Monthly Promotion Guide mailed three months prior to the ad month. Ad layout also available on ACENET.
  2. Print Desert Region layout from ACENET.
  3. Using the bulletin listing (sent from Hilo office), review each item’s sale plan sales history and determine quantity to order.
  4. View item on Eagle inventory management (IMU)
  5. From the History tab, view promo units sold.
  6. After determining sale quantity to order:
  7. Enter quantity order on bulletin listing spreadsheet.
  8. Write order quantity on ad layout.
  9. Using the bulletin listing notes column, enter notes and necessary action items needed one month prior to the ad month.
  10. Replacement items needing to be ordered from the RSC.
  11. Items not ordered on bulletin that may need to be ordered from the RSC.
  12. Items repeating on sale from the previous month.
  13. On hand amount intending to be used for the sale plan.
  14. Item has a Z Flag.
  15. Item is new with no history.
  16. Similar ACE item’s sale history used.
  17. Etc.
  18. Print the Sale Month’s Sale Item (MIP) file on the first week of the prior month of the ad.
  19. Using the MIP listing, perform a physical count of all (sale) items on the list and update corrected count.
  20. Upon receipt of, immediately open the sign kit and store copies of the ad.
  21. Check all sale signs.
  22. Compare all price signs and posters with ad for accuracy.
  23. Sign kit should include two signs for each item and posters for best buys.
  24. Determine how signs will be used.
  25. Side counter.
  26. End counter.
  27. Bulk display.
  28. Register impulse.
  29. Determine if additional signs are needed.
  30. Merchandise displayed on an end counter will also need a sign at the staple home.
  31. Schedule a portion of the monthly store meeting to review and discuss upcoming ad.
  32. Hand out store copies of the ad to all employees and have a discussion of the upcoming sale plan.
  33. Review and discuss the Best Buys.
  34. Review and discuss special marketing items.
  35. Contests.
  36. Special giveaways.
  37. Children Miracle Network charity “specials”.
  38. HHC.
  39. Rebate offers.
  40. Etc.
  41. Review and discuss how the signs, posters, and banners will be utilized.
  42. When and where posters will be put up and taken down.
  43. When and where the banner will be put up and taken down.
  44. When and where the signs will be put up and taken down.
  45. Merchandising sale items for the sale plan.
  46. Determine which items will be displayed on the end counter.
  47. Determine what related staple items will be displayed along with the sale items.
  48. Print signs showing regular retails.
  49. Determine which items will be bulk displayed.
  50. Print signs showing regular retails.
  51. Determine which items will be only available at the staple home.
  52. Determine and make a list of staple items that will be used to fill end counters as sale items are sold out or down.
  53. Seven days prior to the sale start date.
  54. Print a MIP of the sale id.
  55. Using the list, identify items that you have a quantity on hand of zero.
  56. Items with zero on hand, call for store transfers from other stores on the island.
  57. Update your list of items not available for the sale plan.
  58. Post the list of items not available.
  59. Provide the list to every cashier.
  60. Prepare rainchecks.
  61. Prepare equal or better value list of substitutes.
  62. Night before the sale start date.
  63. Neatly hang all sale signs and posters.
  64. All signs “returned” should be for items that will not be available for the start of the sale plan due to zero on hand.
  65. Item signs should be cross-referenced to your list of items not available.
  66. During sale week, monitor sale items displayed on the end counters and bulk displayed.
  67. Prepare all sales clerks with blank raincheck forms to issue to customers for any sale item out of stock.
  68. Issuing rainchecks on the sales floor will minimize cashiers having to write rainchecks at the point of sale.
  69. All sale end counters and bulk displays should be kept neat, well signed, and full with stock.
  70. Merge (related) sale items together to make full end counters when stock is low.
  71. End counters should be kept full, replacing sold out sale merchandise with designated staple items.
  72. Bulk displays should be taken down or replaced with designated staple items.
  73. Night sale ends.
  74. Print a MIP for the sale (MIP will not be available to print on the day after the sale ends).
  75. A SER should be printed for all sale ids at the end of the sale week…including best buys and super coupons, which may end on the last day of the month.
  76. Another SER should be printed for only sale ids…best buys and super coupon items that end on the last day of the month…at the end of the last day of the month.
  77. Day after sale ends.
  78. Tally rainchecks issued (so far).
  79. Record number of rainchecks issued per item on the MIP.

Sale Plan (Ben Franklin Crafts)

  • The Advertising and Merchandising departments get together and assemble a promotional schedule of when and where a particular sale or event is going to take place and which items will be promoted or put on sale at the time. These items along with their old and new pricings are embedded on lists, each with a distinct promotional code. The buyers review the historical sales data on these items and offer their suggested quantity to purchase of each item to prevent a shortage or an excess of these items during the event. Ultimately, the store managers decide the quantities of purchase. After the event, management decides whether or not to continue promoting certain items. This is usually based on whether there is an excess or a shortage of a particular item or if there is a high or low demand for the item. These sale plans are applied for every store.

Accessing Advertising Schedule (ACE Hardware)

  • Log on to the MVL intranet site.
  • Click on the Advertising tab.
  • Click on the Store Documents link.

Accessing Promotional Schedule (Ben Franklin Crafts)

  • Log on to the MVL intranet site.
  • Click on the Merchandising tab.
  • Click on the Merch Documents link.
  • Click on the Promotional (Sales Plan) folder.
  • Click on the Craft folder.

Reviewing Promotion Items List By Promotional Codes

  • Log on to the Eagle Hawaii Network.
  • Enter user name and password.
  • Enter MIP in the Launch dialog box.
  • Enter the promo code into the Type dialog box or scroll down in this box to view a list of the promo codes.
  • This page displays lists of current and upcoming items that are being or will be promoted or on sale. To view past promotion items:
  • Click on the Miscellaneous icon.
  • Click on the View Promo History button.
  • Click on the Lookup icon. This allows you to choose your desired lookup setting.
  • Pick your desired setting and then either enter the SKU number in the SKU dialog box or the promotional code in the Promo Name dialog box.

Seasonal Items