Supply Chain Use Case: Reduction in Reclaim and Swell Gap
Use Case Objective:
Identify root causes of reclamation and swell gap and work collaboratively to mitigate opportunities
Use Case Benefits: Reducing the amount of money tied up in unsaleables will increase overall profitability for both ADUSA and the vendor. Vendors who spend less on reclaim can use that funding to improve the business through reduced COGs, increased promotional funding, etc.. Less unsaleables overall leads to an improvement in store labor efficiencies, reducing the need to process markdowns.
Process/Analytical Steps:
Metrics to Review:
1. Review ordering and forecasting for turn orders and promotional activity 2. Review Unsaleable scorecard with the Analyst on the Unsaleable's Team 3. Review causal data 1. Identify trends, identify top units sent to reclaim, identify top dollar items sent to reclaim 2. Identify top stores 3. DC damages 4. Utilize IRI and DSS to view excessive inventory 5. Were there planogram changes causing unsaleables? 6. Review reset timing to get ahead of excess inventory or look to promote to sell down prior to closeouts
• IRI • DSS • Unsaleable Scorecard • Obsolete Inventory report • 23-week timeline
Teams to Involve/Collaborate:
• Unsaleables Team • DC • Category • ADvantage Team • In-Stock/Forecasting
• Vendor • POG Team • Markdown Team
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