Hot Shrink / Procedure Shrink - Floor Exceptions

This exception report focuses on SKUs with high shrinkage frequency and high shrink to sales ratios. It is divided into two sections:

Hot Shrink - shrinkage to regular packaged SKUs likely to be persistent theft.

SKUs under the Hot Shrink heading are exhibiting a very high shrink to sales ratio. These SKUs are also being reported on your Count Sheets as Count Type WD HOT  and will continue to be reported until the shrinkage stops. Steps to process this report 1. Determine if the SKU is being stolen or if there is a store procedure causing shrinkage. 2. If it is persistent theft then attempt to catch the thief, secure the SKU or consider dropping the SKU from your assortment.  If there is a store procedure causing the shrinkage then consider adhering to Ace's inventory best practices to cure the issue. Please contact us if you need help!

Procedure Shrink - shrinkage to bulk and store supply SKUs.

SKUs listed as Procedural Shrink are likely Store Supply and or Bulk SKUs exhibiting persistent shrinkage.  If the SKUs are Store Supplies then consider using a Credit PO to reduce quantity-on-hand instead of using PIP. If the SKUs are bulk then consider setting their codes to Keep Stock Info = N (Codes tab of Inventory Maintenance) if not using computer suggested orders for these SKUs. If the SKUs rely on a order point then consider selling the SKUs at point-of-sale and then issuing a return to the corresponding dump SKU in the same transaction to net the sale out. This behaviour will allow you track sales at the SKU level and will result in better margin and order point reporting. Please contact us if you need help!

Column Help

SHRINK UNITS: two-year net unit shrink units.

TIMES CHNG: number of times the SKU have been counted over past two years.

SALE UNITS: number of sales units over a two-year period.

TIMES PURCH: number of times the SKU has been purchased over a two-year period.

SHRINK% UNITS: this is the percentage of shrinkage units divided by the SKU's sales units. For example, 10% means that the SKU shrinks 1 time for every 10 units sold.

SHRINK RETAIL: the total retail value of the SKU's shrinkage over the past two years.