Agenda

1. Shrinkage
A reduction in inventory due to shoplifting, employee theft, paperwork errors and supplier fraud. 2. EOD (End Of Day) End-of-day processing updates inventory, customer history, financial records.

Reason of Shrinkage
Incorrect inward/outward
If receipt done against of different article. Quantity mismatch during inward /outward. (short & Excess) Physically goods moved from location but not recorded in system. Damaged and destroy Damage goods removed from shelve physically, but not recorded in system. Internal consummation / Store Consumption Sales Product sold in different article

Shoplifting
Internal External

How to Control Shrinkage ???

SOP will help us to Control the Shrinkage

What is SOP ???

Standard operating procedure Documents that describe a specific method of accomplishing a task that is to be followed precisely the same way every time.

1 Inwarding of Merchandise Process examines the methodology of inwarding merchandise in Choithram Stores. Transfer of merchandise undertaken by Distribution Channel to the store. (Intercompany Transfer) Receipt of Goods by the store warehouse for transfers affected by DC. Basic Principle governing the process: Goods are received according to the Delivery note issued by the Distribution Channel. Receipt of Goods at the Store and checking procedures.

Delivery vehicle arrives at the store. Document set is checked by Storekeeper to ensure it contains a Delivery note by dispatching DC.
Note: - Proceed with inwarding process, only if the relevant documentation is in Order. If above documents are missing, then Store Keeper will examine the case and try to solve the issue by getting in touch with DC. In no circumstances, the merchandise should be inwarded, in variance to the above. Once inwarding is complete and saved, the system generates a Goods Receipt Note (GRN) confirming the items which were received. The GRN is printed and attached to the set of documents pertaining to this consignment. The entire set of original documents is filed separately and to be kept for future reference.

1.2.1 Shortage/damage received during receiving of the merchandise In case of in-transit shortage/damage, Store Keeper has to identify the same. He must clearly mention the Item detail (Article, Barcode, Item Description etc.) & short/damaged qty on delivery/GRN document. Transporters signature has to be taken on both the copies of delivery documents mentioned above. Duplicate copy to be handed over to the transporter while original copy to be retained at store. He must then do the GRN for actual quantity received.

1.2.3 Excess Merchandise received On receiving excess items, Store keeper to keep these items aside. These items are not to be inwarded. He must inform the dispatching site of excess delivery. The excess items to be sent back to the dispatching site separately (In case of excess goods can be returned at same time) 2. Invoice Verification Invoice verification allows us to capture the details of vendor invoices. After goods receipt, invoice verification should be done by Store Keeper. 3. Pricing Any price changes has to be updated in POS and weighing scale by the store IT Staff based on prices given by Procurement Team.

4. Sale Sale is an act of completion of a commercial activity, to maintain proper inventory records store team needs to take corrective action. To maintain inventory, all items should be sold in same article in which GR is happening. 5. Scrap Scrap at the store comprises of products, which cannot be sold, returned to vendor or Salvaged and hence have to be disposed off. For Perishables, continuous quality checks to be conducted for All articles periodically to ensure that the merchandise is fit for display, sale and consumption. Any deviation from the same to be taken off the floor. The approving authority for such products disposal would be the Store Manager or Asst. Store Manager. This is a daily/regular activity for Fresh articles. All Merchandise destroyed quantity to be registered daily by system entries in system. The storekeeper has to carry out the stock adjustment for the same in the system by booking under Garbage through Transaction Code MB1A using the movement type 551. The Store Manager has to verify and sign off the scraping documents on a regular basis. 6. Inventory Count In Weighable items Inventory accuracy is critical and highly sensitive. Cycle counting can increase inventory accuracy. Periodically stock count should be done for Fresh category.

Physical stock count (Perpetual Inventory) required is once in a month but if there are plenty of discrepancy then frequency has to be increased

END OF THE DAY PROCESS

Process Flow

Thanks