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When a customer uses Orridge services the resulting stock data
empowers the retailer to implement targeted activity to address stock issues.
The information generated from a wall to wall stocktake usually highlights that
a popular or high value department is suffering shrinkage at a greater rate than
other areas. A solution for a problem section (for example investment in
security tagging) can be costly but has the potential to be cost-effective by
reducing loss, but how can the effect be measured before further investment in
the chosen security method can be committed to with confidence?
The Perpetual Inventory Service
The Perpetual Inventory (PI) service has been developed to
accurately measure the level of success that a chosen security strategy is
bringing to the retailer. It can also be used to further explore whether a
security strategy should be considered for a product range. The service is
commonly used at store level, but translates equally well in a distribution
centre or warehouse environment. The key to the success of a PI exercise is to
target a sample of pilot stores and perform an intensive, frequent number of PI
counts on the department or product type that is receiving additional focus.
Benefits of the Service
By refreshing the count data regularly Orridge can provide the
customer with a closer view of shrinkage for the stock area in question. The
sample provided has the potential to provide a sound basis for deciding whether
the new security measures should be rolled out to the whole estate or
alternative measures should be explored instead. Ultimately the benefits of this
service assist to lead to: -
- A close measure of shrinkage for a particular range of products.
- Identification of specific product issues within the targeted range.
- Reliable reporting upon which decisions can be made.
- Confidence in rolling out a security method proven to provide results.
How it Works
A product range is first targeted and its corresponding product
file is supplied to Orridge for stock validation. The following process is then
performed: -
- Location boundaries are given to all targeted products in the
store.
- All applicable products within the specified locations are scanned.
- Intensive accuracy validation processes are employed to guarantee integrity.
- Bespoke PI accuracy reporting is used to provide quality assurance.
- Store involvement is encouraged throughout and absolute transparency of process
is demonstrated by Orridge.
A bespoke reporting suite is individually tailored by Orridge’s
in-house team of software developers so that the customer is provided with the
information required in the format they specify.
Review and Action
Whenever appropriate Orridge is pleased to be part of an
assessment of the service it has delivered. In the case of a PI stocktake
schedule we believe supplier involvement is essential and valuable to the
customer. By maintaining a close understanding of the results the process is
delivering Orridge can use its experience to help decide the best strategy
moving forward. |
