Avanti -Inventory Waste Management

This course discusses the processes and procedures you must implement to manage and reduce inventory waste at your markets, including analyzing the following reports: 

  • Account Profitability 
  • Inventory Movement 
  • Product Activity 
  • Inventory Adjustment Summary 
  • Market Stale Guide 

Account Profitability Report 

Use this high-level report to quickly identify those markets (locations) with high stale dollar amounts. 

CAUTION: This report does NOT identify those products with a high stale rate. 

  • Run report for all markets (locations) and sort by the stale totals to identify the locations with the highest stales. 
  • This report only displays total dollar amounts. 
  1. Find this report in the AMS REPORT CENTER, in the Finance pane. 

  2. Select your all locations for an account, click View Results, and then click the Stale column header to sort the data from highest to lowest. 
    Tip: It is important to evaluate these first, because if you make the appropriate changes, you will see the most change in your market profits.

  3. Enter target values for acceptable percentage of stales, and then determine if locations are over/under the acceptable target. For this exercise, use 2%. It is recommended that you export the report, so you can pivot the table for a closer evaluation of the data. 
    1. Add a column to figure out the value of your 2% target.

The following is an example of locations needing further examination:  mceclip0.png

The following is an example of locations performing better or close to the 2% target value: 

Inventory Movement Report

Use this report to capture all product activity movement, to manage your market, and to sure up your warehouse:

  1. Find this report in the AMS REPORT CENTER in the INVENTORY pane.

  2. Run this report weekly, and for all locations. You can analyze this data a single market, a multi-market account, or your entire operation.

  3. Get all inventory movement for last week and do a zone-to-zone transfer. For example, see that you restocked 10,000 Mountain Dew last week, then you zone-out 10,000 from the warehouse. So, when you perform a warehouse inventory, you can see discrepancies.

  4. Capture all product activity movement, including:
  • Sales
  • Stales
  • Restocks
  • Reductions
  • Over/short
  • Error add/subtract.

5. Query and sort highest staled products and compare them to the restocks, sales, stales, etc.

6. Analyze the following variables when identifying ways to reduce waste:

  • Specific locations that are extremely high in waste – outside the acceptable 2% target.
  • Products across the organization that are hitting top-staled items across the entire branch.

Running this report for a month across an entire organization, and then sorting the data by highest Staled Qty can help identify a product’s performance across your organization. For example, if you notice Chocolate Pudding is the highest staled item, it could just be performing badly at a few locations and that is what is causing it to be a top-staled product. That Chocolate Pudding could be performing well in 80% of the locations, so look at the Product Activity report next. 

Product Activity Report

Use this report to capture all product activity by product group or category. This is a good report to query the fresh food category across all markets, because fresh food is your biggest opportunity to reduce waste costs.

This report captures all product adjustments, including:

  • Restocks
  • Sales
  • Stales
  • Reduction
  • Over/Short
  1. Find this report in the AMS REPORT CENTER, in the PRODUCT pane.

  2. Expand the Select Criteria drop-down menu and choose either Product Group or Product Category, expand the Select Category or Group drop-down menu and select an option from the list, and then select a Product from the list.
  3. Analyze the data; for example, to see which flavors of a product are performing badly, or to decide which flavors to rotate out of markets.
  4. Export the data, and then pivot table by: Product on Columns, Sum of QTY Sold, Sum of Stale, Count of Location, and then QTY per Location.
    The previous report was run for all Grandmas cookies, to evaluate which flavor is under performing. Notice oatmeal raisin are at 171 locations (almost as many locations as the peanut butter). Most staled cookies were oatmeal flavor, and oatmeal also sells at a half the ratio of peanut butter. The next step is to evaluate this cookie flavor performance by location, to see if it’s performing lower in some markets, or if it’s across all markets.
  5. Be sure that:
  • All your product categories have appropriate items assigned.
  • You run this report for the Fresh Food category MONTHLY, or QUARTERLY.
  • You use this data to help formulate your menu rotation.

Inventory Adjustment Summary Report

Use this report to find out which location you need to make critical changes at to reduce stales. Run this report for all market locations, and to show the dollar amount and the total number of adjustments made for each market at a high level. You can refine the product adjustment details to view the individual products, and then sort the Stale column to identify the highest staled item at that market. This report also includes date and timestamp for when products were staled.

  1. Find this report in the AMS REPORT CENTER, in the INVENTORY pane.
  2. Select a location(s), and then click View Report.
  3. Click the value in the Stale cell to view a list of all products staled at the location(s).
  4. Click the Qty. column header to sort the products by highest volume staled.
  5. Export the report, and then pivot table to see count of quantity, sorted by highest staled quantity, and then by highest cost. Typically, you want to fix a product that is costing you the most.
  6. Compare this report with the previous Product Activity report to verify that you need to remove the product or simply adjust the Min/Max levels for this product.

Market Stale Guide

Weekly target stales per location varies based on variables at each location. Percentage may reduce at large volume markets, due to the acceptable dollar amount caused by stales. For example, a $10,000 weekly sales market may only stale out 1.5% ($150). View your current market performance based on this variable.

Build your guide out in a spreadsheet, like the example illustrated. Break out the new sales in hundreds.