Time To Get Your Stock Levels In Line and Overall Inventory Under Control

In the wake of the holiday business, January becomes a critical time to get stock levels in line and overall Inventory under Control. The 2012 National Supermarket Shrink Survey states there exists a clear thread of practices associated with the control of inventory, inventory turnover and inventory management with resulting shrink loss levels. Top performing companies report having 26% lower inventory levels resulting is 30% more inventory turns and 15% lower shrink than companies without clear and consistently executed inventory control practices.

· 72% report a medium-to-high confidence level in their physical inventory results – up from 56% in 2006. <read more>
· Companies with best in class backroom stock level controls reported 60% fewer inventory count “bounce” results and 70% smaller “bounces” than companies with weak stock level controls.

Backroom Organization and Inventory Control. Effective organization and backroom discipline creates a condition that breeds organization throughout a store. Companies that report using strict back-room controls achieve better than average shrink control, cash flow management, labor productivity, sanitation and organizational discipline. Surveyed companies report that optimal shrink and organizational control is achieved when backroom stock levels are kept to no more than 8 – 10% of total non-perishable inventory and further produce to inventory turnover of approximately 15 turns per year. Except as part of an organized forward buying program, surveyed companies reported that excessive back stock negatively contributes to store shrink.