What examples can you give me on spoilage.I'm looking for ways to shrink are number. I will be working on this for a few weeks. Even talking to employees at 808, in Marion,Ohio.I know it is roughly 1.5 billion dollars in Shrinkage, total. I also know that Shringage is computed in are budget. Furthermore, it would be unrealistic to assume their would be zero. Why not a Million?? This is money out of are pockets. It affects the employees and the costomers.Reflecing in are prices.Think what we could do with that extra money. (1)Theft ,(2)Damage,(3)Spoilage,(4(Bookkeeping Just to name a few. I no there are somethings out of are control.But,I also know we can SHRINK are SHRINGAGE. Hope you can help.
I don't know much about the other departments, but here is from my experience working in meat department.
PURGE -- the term 'purge' is used to describe meat that has bled out of the cryovac. If a cryovac piece of meat sets for a week or so it begins to lose blood into the packaging. When we buy this from the warehouse we're buying the blood too. If the warehouse is over ordering on said items the cases will set for some time and purge. The warehouses need to come up with a solution that would meet the needs of the business to make sure we're buying correctly and not overbuying as I have seen in the past with our warehouse.
New Products -- I've seen Kroger bring in items that are either hit or miss. The tamales they brought into the southwest are successful and affordable for the customer. There are some products like the Market Street links that either get mark downed all the time or they're missed when doing a date check and throwing them away. Bring in products that customers WILL actually buy. Take for example we got rid of Jimmy Dean Maple. Customers want this and we got rid of it. Also, bring in products that are ideal for customers. Examples: Wright Sausage Chubs Regular, Hot, and Sage. Slap Ya Mama products (Cajun Catfish Breading, Crab Boil, etc), and a Jennie-o Turkey Sausage.
Also, we've started getting alot of cryovac leaks for bacon. We use to scan them out as damage, but I know people will buy it. We give a 'leaker' 3 - 4 days at a reduced price and then go even further to try and sell it.
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1.5 Billion? I'd be willing to bet that only a minute fraction of that is store responsibility (loss due to in store damage, theft etc). The remainder would probably be attributed to distributions. I'd first look at the products they determine to be store responsibility then mitigate that against what was distributed.
