Elements of good ordering: Time, concentration and gut decisions

Elements of good ordering: Time, concentration and gut decisions

Don't want to get burned by ordering too little or too much? Columnist Armand Lobato offers advice on maintaining a well-stocked produce department.
Don't want to get burned by ordering too little or too much? Columnist Armand Lobato offers advice on maintaining a well-stocked produce department.
(Photo courtesy of Armand Lobato)
by Armand Lobato, Aug 22, 2024

Go with your gut.

How many times have we all heard that advice? As a produce manager, you rely on many factors, such as when writing an order, for example — the all-important order that is placed numerous times each week affects many outcomes.

Order too little, trying to keep the inventory tight, and you can get burned. There’s nothing worse than to have empty shelves in the middle of a busy rush, knowing that not only are you missing sales, but also must face unhappy customers. Shoppers will only give you so many chances with inadequate orders before they disappear for good, seeking a grocer who can keep its produce department stocked.

Order too much and you’re in a different kind of trouble (and not the good kind). The easiest thing is to over-order. True, you won’t run out of anything, but too much inventory never turns out good. You will soon have aged or damaged inventory and clogged stock rooms, which triggers logjams as clerks waste precious time digging for product they need. Too much inventory affects sales, negatively affects gross profit and generates excess shrink.

So how does trusting the gut help?

As produce managers, taking ample time to write your order provides an opportunity to concentrate on each buying decision made. These questions should resonate with every line item: Is this an ad item? Where is this item headed? Growing or declining? Walking the cooler and backroom closely and taking careful inventory beforehand will help immensely in writing the order. Further, it helps to walk the sales floor. Seeing displays up-close ahead of time offers important reference points. Your resulting gut feeling will be spot on.

These few steps will help you make better, informed decisions based on price, quality, seasonality, display size and more.

Order just what is needed until your next anticipated delivery and you’ll have a fresh, fully stocked department, a near-empty back room, an efficient crew and happy customers.

As produce buyers at a warehouse or distribution center, buying decisions are made with a similar method. Instead of a single produce department, you’re tasked with anticipating what all your produce managers will be ordering from you. Here are a couple of examples.

I remember as a foodservice buyer thinking about upcoming local sports team activity. Whenever the home team plays — be it hockey, football or basketball — I anticipated that sports bars and the like would likely be loading up on carrot and celery sticks for wing dishes and libations. It’s not a ton of volume, but it’s good not to run short.

As a buyer for a retail chain based in Southern California, I once ordered extra in-husk coconuts as warm weather and holidays approached. Out of the blue, we nearly ran out — but didn’t — as I anticipated beachgoers would be hitting the beach cities’ store locations and stocking up on this somewhat novelty specialty item. Just a gut feeling.

Of course, the nuts and bolts of produce buying involve anticipation of commodity and volume items: apples, citrus, lettuce, potatoes, onions, grapes, ad items, seasonal items and the like. But it comes down to concentrating on how you’re merchandising, what time of the year, which month it is, if it’s a busy holiday or if it’s just business as usual.

Take into consideration all that’s going on, not only within the confines of your store, but what’s happening in the news, weather, local special events and more. Many factors play into the decisions you make as you grab the order clipboard. Be as informed as possible, keep your pencil sharp and get crackin’.

It may be “just another order,” but each decision is a demonstration of your skill, your experience and your anticipation. It’s gut-check time.
Armand Lobato works for the Idaho Potato Commission. His 40 years of experience in the produce business span a range of foodservice and retail positions.

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