Shrink historically goes up 17+% during the holidays and with the increase in Receiving activity due to the holidays, now is a GREAT time to review back door control and receiving standards. Receiving errors, theft, misdeeds and inefficiencies accounted for 7% of the total store shrink in the average respondent supermarket for a loss of $35,884 annually. Of this amount, 57% of all backdoor receiving shrink was attributed to receiving “errors” and 43% was attributed to vendor and/or receiver “dishonesty”.
Backdoor receiving is a cornerstone business function that must include consistent and disciplined shrink loss control and store operations practices. Every supermarket has supplier groups delivering goods that must be received. These include: the main or central wholesaler that supplies the majority of product needs, secondary suppliers and Direct Store Delivery (DSD) vendor companies that supply direct delivered products. Each of these suppliers cause their own unique shrink loss opportunities that must be addressed.
FACTS AND FINDINGS
- Vendor Theft accounted for 3% of total store shrink. Vendor theft as defined includes any incident of intentional fraud or theft or misdeed by a vendor.
- 44% of survey respondents reported that they used the “piece count method” to check-in warehouse deliveries, 22% reported only checking pallet counts, 17% stated they performed random spot checks and 13% did not specify any receiving method for primary supplier deliveries.
- 68% of this year’s survey respondents reported that they are involved in various stages of Scanned Based Trading (SBT) use. This is up significantly from 2006 when only 5% of respondents reported engagement with SBT.