Key Metrics.pdf - Count Metrics

Columns

Years using Mango
The number of consecutive years your store has been using the Mango system.  This helps gauge how far along a store is in their deployment of Mango. 


Operational Level (level columns are in grey) 
Shows your store's current inventory Operational Level:

Completion (3 month average)
Level 0 - shows the percentage of SKUs listed on your store's Count Sheets which received an updated Last Physical Inventory date (SKU was counted).

IRA 3M Average (3 month average)
Level 1 - shows your store's sampled quantity on hand accuracy (or inventory record accuracy, IRA).  Based on the variance results of Mango's RC Count Sheet Count Type.  This metric helps a store gauge the accuracy of their quantity on hands. If your IRA metric is showing "??" this means that your store's Count Sheet Completion metric has dropped below 95%.

Dollar Accuracy (3 month average)
Level 2 - shows the net dollar variance from all Count Sheet Count Types over the past 3 months as a percentage of total dollars counted.  This metric helps a store gauge the accuracy of their Eagle ending inventory (RIV report or Business Advisor). 

Shrink (twelve trailing month average)
Level 3 is Mango's adjusted shrinkage metric that excludes bulk, errors, fasteners, closeout, store supply, lumber and live goods (see shrinkage classification).  With these excluded, your adjusted metric will measure uncontrolled loss which is likely being repurchased.  The metric shows trailing twelve month (TTM) loss at replacement cost divided by sales for the same period.

Efficiency % (twelve month average)
Level 4 - shows how much time is spent counting and/or changing quantity on hands in your store.  Stores who spend too much time devoted to this exercise tend to misplace their accuracy labor.  High counting labor is analogous to high bailing labor (in a boat for example).  That is, we're better off fixing leaks rather than continuously bailing. Many stores engage in full store counting and achieve zero business benefit.  Stores experiencing difficulty with IRA (level 1) generally have misplaced accuracy priorities where high counting frequency (low Efficiency) is preferred over root accuracy processes (Accuracy Cadence, Accuracy Skills).

SKUs (TTM) Changed
This metric is related to your Efficiency metric (Level 4) and shows the percentage of SKUs which received a manual quantity on hand adjustment (variance through PIP or Inventory Maintenance) over the trailing twelve months (TTM).  In a typical scenario, a store will need to adjust 10% of their SKUs' quantity on hand values due to cashier error, theft and receiving/shipping errors.  Metrics above 10% indicate an accuracy leak caused by sloppy counting, shelf/back stock maintenance or cashiering.  Focusing in on Accuracy Skills rather than counting can help move this metric down and accuracy up!

SKUs (TTM) Counted
This metric is related to your Efficiency metric (Level 4) and shows the percentage of SKUs which received a Last Physical Inventory update within the trailing twelve months (TTM).  This helps gauge if a store has a regimented counting process in place (high percentages).  There is not a statistical correlation between accuracy and the number of SKUs counted. 

Monthly Changes
This metric shows the percentage of SKUs in your store which receive a quantity on hand variance in a typical month (median).  High numbers indicate a store engaged in regular high-frequency quantity on hand changing. 

Swell Percentage
This metric shows the ratio of shrinkage variances (quantity on hand adjusted downward as in the case of theft) to swell variances (quantity on hand adjusted upward as in the case when thieves put the stuff back).  The typical ratio is 37%, which means over 1/3 of our variances are from generous customers giving us free stuff or we are correcting for cashiering and counting errors. Corrections within the month are excluded from this metric, for example if a SKU was shrunk but then later found and its QOH adjusted back, as long as this correction did not cross the month end, would not affect this metric.  A store showing a high swell metric indicates a receiving issue (SKUs quantities are being adjusted through PIP/IMU instead of through an order).  Low metrics can be a sign of inadequate variance research/control, professional theft, or (sometimes) a perfect store.  Careful variance research will answer this question!

Negative QOH
This is mainly a diagnostic metric used by Mango staff during training to verify a store's reported IRA.  The lower this metric, the higher a store's IRA.  It is also used internally for count validation.  1% or less indicates an IRA of 90% or better, 2% indicates 80% - 90%, 3% indicates 70% - 80%.  IRA and Negative QOH should match up in this way.  If not then it may indicate a condition in the store where there is an issue with initial count quality and/or variance research.

Median Last Physical Yrs.
This shows how long it has been (in years) since the typical SKU has received a Last Physical Inventory date (how long has it been since the typical SKU in my store has been counted).  This helps gauge the counting frequency of a store.  Caution: there is no correlation between this metric and accuracy, in fact, there is light inverse correlation.  That is, the more a store counts, the less accurate it is (in general).

Recovery Potential
This metric for SKUs showing on hand values but have stopped selling in your store, however, they continue to sell in other stores.  This is the MC Count Sheet Count Type.  It is a gauge of potential sales opportunity if these SKUs were all selling like they should.  High numbers here indicate a more cluttered inventory file (clutter impacting sales) which is great because your staff through Mango is gong to find all these SKUs and get them back selling! Lower numbers indicate a more cleaned-up inventory file.

Recoveries Found
The number of SKUs from the Recovery Potential pool (above) which have been zero and reordered through your monthly Count Sheet processing.

Sales (TTM) Recovered
The annual (trailing twelve months, TTM) sales attributed to SKUs in the recovery potential pool (above) which have been zeroed and reordered.

Shooting Outs %
This metrics helps your store gauge its shooting outs procedure, showing the percentage of countable candidate SKUs that were counted during the month.  A SKU must be at zero on hand for 7 (or more) consecutive days to be included as "countable".  Assuming a store is shooting outs weekly then (in a perfect world) 100% of countable SKUs will receive a Last Physical Inventory date update. A listing of countable SKUs not counted in your online Excel-based In Stock report Shooting Outs tab. 

Targets: 
0% - 14% - No regular shooting outs procedure.
15% - 24% - Monthly or bi monthly shooting outs.
25% - 34% - Almost weekly shooting outs.
35% - 100% - Weekly and thorough shooting outs. 

Defectives %
This metric shows the percentage of policy A SKUs rung (or PIP'ed) as defective divided by your store's policy A purchases.  This metric is helpful to gauge your store's defective experience and processes compared to peer stores.