How’s your inventory?
This is a question posed frequently by store managers to produce managers, especially going into a holiday. Or perhaps at the onset of a busy weekend or other heavy shopping period. One of the big focal points of those managing a retail operation is to have plenty of stock on hand to maximize sales.
You can bet the same question is posed to the store manager from his or her boss regarding total-store readiness.
A produce manager must weigh numerous variables and make hundreds of decisions as the order is written, line by line.
However, what about all the other days of the year? So many days, weekends and less-critical periods come and go in what some might call a regular or normal day. What then? Isn’t inventory control just as important then? Isn’t writing an accurate produce order equally important, no matter the circumstances?
The answers to these questions are simple. Yes, yes and yes.
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Few areas of produce management are more important than having enough inventory, but not too much. A produce manager must weigh numerous variables and make hundreds of decisions as the order is written, line by line.
One thing is certain — most produce managers are so swamped with all their other tasks such as merchandising, stocking, receiving loads, etc., that few take enough time to do the one thing properly that sets the stage for all the other tasks: Writing the all-important, accurate produce order.
Without over-thinking every order decision, it’s best to allow ample time to take stock of what’s on display and what’s in reserve to determine needs.
Something about those decision-making variables ...
Imagine the thought process for just one item. Navel oranges, 88 count. Let’s see, we have 7 cases on hand and the full display we have holds the same amount. Based on our sales lately we should sell what’s on display today, with a rotation and one stocking later today. The order I’m writing for will arrive tomorrow, but it must last for three days, until we expect the next delivery. So, I should order 21 cases.
Hmm ... navels are a good seller, quality now is outstanding, and the price is as low as it’s been in weeks. I should carry a little extra safety stock, and the tie layer for this item is 9. So, I’ll order 27.
One item down, a couple of hundred more decisions to go.
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Despite some managers managing (somehow) to race through order-writing, one “variable” mistake (item coming off ad, going on ad, quality declining, etc.) could lead to too much inventory, resulting in shrink. Or too little inventory, resulting in unhappy customers (and an unhappy store manager) and lost sales.
A well-run produce department centers around inventory control accuracy. Without over-thinking every order decision, it’s best to allow ample time to take stock of what’s on display and what’s in reserve to determine needs. This will help not only with inventory control, but everything else that follows.
Armand Lobato works for the Idaho Potato Commission. His 40 years’ experience in the produce business span a range of foodservice and retail positions. E-mail [email protected].