In-Stock Percentage is the highest-level indicator of your overall inventory management health. It is a measurement of how often you’re meeting your customers’ needs by having the right product in stock when your customers want it. A healthy In-Stock Percentage helps eliminate wasted labor and lost sales. 2 PERFORMANCE DRIVER: Ace In-Stock Percentage
Pinnacle Target
Platinum Target
≥93% In-Stock
≥95% In-Stock
Why is Ace In-Stock Percentage important? Customers expect you to have the product they need, when they need it and in the right quantities. • Consumers frequently switch to competitors if an item is out of stock and associates cannot locate it in a different area of the store. • The opportunity cost of each out in your store is 58 cents a day in lost sales (Ace study). • For the past 10 years, stores that have fully implemented the Ace recommended Minimum Order Points have seen 50% better sales on those items than stores that do not implement the recommended quantities. Your inventory is fed to acehardware.com. Revenue from acehardware.com grew massively in 2020 — growing over 272%. With more customers comparing your quantity on hand to your competitors, it’s more important to be in stock. Ace In-Stock Percentage also helps you identify other operational issues. • Why did you run out of stock on a particular item? • Do you have the right project quantities? • Are you flagging items as store closeout in a timely manner? • Do the items have the correct location codes? Take Action On a weekly basis, access the Ace In-Stock Report through the Retail Analytics Dashboard on ACENET > Analytics Dashboard. Review all A, B and Seasonal items as well as top lost sales opportunities for Cs and Ds. E agle for Windows users should utilize the Mango In-Stock Opportunity metric to strategically increase
quantities of items of which you consistently run out. Implement the Ace recommended Minimum Order Points.
How is it measured?
Pinnacle Target
Platinum Target
≥93% In-Stock
≥95% In-Stock
Percentages are measured over a rolling 12-month time period, and stores need to meet or exceed the target once in a calendar year to achieve Platinum or Pinnacle status.
Contact information: storeoperations@acehardware.com or 630.472.4784
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