Accuracy Cadence - Purge Back Stock

One of the top causes of Inventory Inaccuracy is Back Stock.  Many times SKUs with Back Stock will sell out on the shelf and then be zeroed out when doing routine shooting outs thereby creating false shrinkage and permanent overstock.  To counteract this, we recommend a periodic purge of back rooms and top stock.
This purging process involves bringing all Back Stock (and/or Top Stock) to the sales floor, fill any holes and then account for its accuracy.  Once you are confident you have found every item for a SKU then get a total count, enter it into PIP, fill the shelf as much as possible and then take the remainder back to its back stock location.  Don't be surprised if you discover a lot of items with wrong counts!  Use the link below to print "Additional Product Available" tags to help identify SKUs in a Back Stock condition.  

Advanced: consider limiting Order Points (ROP Protect) or increasing shelf space to reduce back stock. The typical store has over 300 SKUs in a back stock condition, however, with a little control we think it can be halved. Less back stock helps reduce out-of-stocks, increases labor efficiency, reduces storage requirements and increases accuracy.

Additional Product Available.pdf tags are great to help employees and customers know that product might be located in back stock or other areas of the store. They can be ordered through Ace Brand Place: Ace Brand Place > Order Supplies > Store Environment > In Store Signage/Misc. Components > Product Name: Additl. Product Peg Hook Tags (#109726) and Additl. Product Shelf Edge Tags (#109727))

Back Stock Replenishment Report

This report provides a daily pick list of items in your back stock that sold yesterday and need to be replenished on the shelf. This report is driven off a daily QOH data feed from your Eagle system to Mango and uses Location 3 data, set by the store, to know how many fit on your shelf. This report is very beneficial in maintaining the amount and accuracy of your back stock. For guidance on getting started, please review the documentation under Setup & Maintenance.

Setup & Maintenance

Processing Back Stock

Report Example - ARMA

Location Codes - Location 3 - Back Stock

Using Location 3 to Indicate Shelf Capacity

Use Location 3 to hold the number of units that fit on your sales floor (shelf or peg hook, including secondary locations). You can do this as part of regular department maintenance, when you purge back stock, and when putting stock away. 

Your Mango Count Sheets will show a   for SKUs where the quantity-on-hand (at month end) was greater than the shelf capacity (Location 3). This helps prompt your counters to look in back stock for additional quantities when processing Mango's Count Sheets.

Location 3 Benefits

• Count Sheets show the Back Stock Indicator , indicating there might be more product in back stock.
• Shrink Report shows BS+ in the Research Reason column indicating a possible incorrect count to a SKU in a back stock position (a common occurrence).
• Simple back room replenishment: QOH - Loc 3 = amount to keep in back stock, all else can fit on sales floor.
• You can see Loc3 in PIP for variance research. 
• Daily Back Stock Replenishment Reports.

Examples

If you can fit 12 cans of  spray paint on your shelf then enter 12 in Location 3 (click on Location in Inventory Maintenance to bring up the Location Code Maintenance window).  If Qty On Hand is 20 then Mango's Count Sheet will show a  indicating more to count in back stock. If Qty On Hand is 20 and there are 10 in the back room then 2 can fit on the shelf (keep 20 - 12 = 8 in back stock, the rest can go to the floor).  The Shelf quantity printed on the bin tag indicates a SKU with possible back stock which is helpful for department maintenance and customer service.

Printing Labels with Back Stock and 2nd Location

Open Eagle Browser Click on "Label Design and Printing Menu" Click on "Design Inventory Labels" Click "Load Lbl" (F6) and open the label that your store uses Click "Add Fld" (F4) and a new box pops up Add Location 3 Double-click the new field and select the options in the screenshot below for Location 3 Code (click "Don't print title field if Blank), click OK  Move the Loc 3 field into a place where it fits and can be easily read Do the same for Location 2 (set it to print underneath Location 1 but with a smaller font as shown in the tag below) Save the change by clicking "Save Lbl" (F5) Save to the label your store uses and overwrite the previous file.