6.8 Shrinkage policy

6. INVENTORY MANAGEMENT

Ensure the proper control, tracking, and management of all products in the Bateel stores

Scope:

Related Documents:

6.1 – 6.8

6.8 Shrinkage policy

Shrinkage definition:

Shrinkage is the loss of inventory that can be attributed to factors such as:

 Internal/employee theft

 External theft/shoplifting

 Paperwork errors

 Inaccurate shipments

 Inventory variance

 Poor receiving practices (e.g., short in delivery).

 Failure to record all mark outs

How to calculate shrinkage:

The percentage value of shrinkage is calculated based on consumption of the item or group or total value, depending on the situation.

Shrinkage % =

(Stock variance /consumption) * 100

Important Note:

 Free tasting factor will be considered only if recorded in Bateel format and approved by the area manager.

 Swapping of the product will be considered only with the same value or product group.

 All promotions/complimentary items must be supported with retail management approval (email approval).

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How to control shrinkage:

 Plan your order based on monthly sales target and VM strategy and return the excess stock to the WH with proper documentation.

 Follow the stock receiving process properly and report the discrepancies before cut-off time.

 Organize the stock in selected racks/cabinets. Separate by box and by type of inserts

(chocolate / dates), wrapped and labelled.

 It is advised to keep the wooden boxes in the original carton or bubble wrap to protect the goods.

 Correct labelling along with the description or barcode MUST be followed.

 Follow the FEFO method for expiry control.

 Conduct replenishment/rotation as per Bateel policy.

 Train the staff properly on packaging items to avoid incorrect inputs and negative stock in the system.

 Barcodes must be used for all SG Boxes and Gourmet range.

 Barcodes for Rhutab are to be printed and kept next to the POS system.

 Trays, Étagère, and Hampers displayed in the boutique should be labelled with the correct barcode.  Plan your monthly physical inventory in advance, train and delegate duties based on the staff capabilities.

 Finish your inventory-related queries on the same day and do a regular follow-up.

 Escalate abnormal activities to the Operations Manager.

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