Loss Prevention. RPT130 Process. Leader s Guide. Revision 1.0

Transcription

1 Loss Prevention RPT130 Process Leader s Guide Revision 1.0

2 National Automotive Parts Association 2999 Circle 75 Parkway Atlanta, Georgia No part of this publication may be copied, reproduced, transmitted, transcribed, stored in a retrieval system, or translated into any language or computer language, in any form or by any means, electronic, mechanical, magnetic, optical, chemical, manual or otherwise, without the prior written consent of an officer of National Automotive Parts Association, 2999 Circle 75 Parkway, Atlanta, Georgia Information in this manual is subject to change without notice. Copyright 2012 by National Automotive Parts Association. All rights reserved.

3 National Automotive Parts Association 2999 Circle 75 Parkway Atlanta, Georgia No part of this publication may be copied, reproduced, transmitted, transcribed, stored in a retrieval system, or translated into any language or computer language, in any form or by any means, electronic, mechanical, magnetic, optical, chemical, manual or otherwise, without the prior written consent of an officer of National Automotive Parts Association, 2999 Circle 75 Parkway, Atlanta, Georgia Information in this manual is subject to change without notice. Copyright 2012 by National Automotive Parts Association. All rights reserved.

4 The RPT130 Process Revision 1.0 Lesson Objectives As an outcome of this Lesson, you should be able to: Describe the common types of returned parts: Cores, Defects with Cores, Black Label Defects, Red Label Defects, New Parts, and Batteries. Explain the key steps involved in the daily RPT130 check-off process. Describe differences between handling various types of returns. Identify potential mistakes that can be made in processing returns, the effect they can have on the store, and ways to prevent/resolve them by National Automotive Parts Association. All rights reserved. 1

5 The RPT130 Process Revision 1.0 Platform\Activity Notes Estimated seat time for this lesson: 1 Hour, 30 Minutes This lesson focuses on the policies and best practices for verifying and handling returns after they have been received back to the store, before they are sent back to the Distribution Center or manufacturer. This set of procedures has been designated The RPT130 Process. In your introductory remarks, be sure to make the following point: The RPT130 Process involves very specific steps that help your store avoid inventory losses. There are several points at which it may, at your discretion, be useful to conduct additional demonstrations. Just be sure to be mindful of any time constraints. Review the objectives on the slide by National Automotive Parts Association. All rights reserved. 1

6 Participant s Guide Introduction to the RPT130 Process The entire cycle for returns involves three basic parts: Receiving items back from customers (covered in Customer Returns lesson) Verifying and organizing returned items on a daily basis using the Special Invoice Recap report, or RPT130 (covered in this lesson) Preparing the items to be returned on a weekly basis to the Distribution Center or manufacturer (covered in the Store Returns lesson) NAPA has many best practices designed to help protect you against inventory losses that can occur if returns are not handled properly by National Automotive Parts Association. All rights reserved.

7 Leader s Guide Introduction to the RPT Process Discuss the overall process for returns, and how the content for this lesson fits in, as noted on the slide by National Automotive Parts Association. All rights reserved.

8 Common Categories of Returned Parts Describe each of the common categories of returned parts: Cores: Defects with Cores: Black Label: Red Label: New Parts: Batteries: 2012 by National Automotive Parts Association. All rights reserved. 3

9 Common Categories of Returned Parts Discuss the different common categories of items that have been returned from customers. Participant answers should be close to these: Cores: These are non-defective parts with core value that can be returned to your DC for full credit. Defects with Cores: These are defective parts that have a core value. Black Label: These are regular defective parts with no core value and do not contain any hazardous materials. Red Label: These are defective parts, with no core value, that must be labeled as containing hazardous materials as part of their construction. These are referred to as hazmat for short, and are also known as chemical defectives. New Parts: These are new part returns that are in salable condition that can be placed back in stock. Batteries: While these may seem to fit into the other categories, battery returns have such distinct rules and procedures that they warrant their own category by National Automotive Parts Association. All rights reserved. 3

10 Participant s Guide Organizing the Processing Area By the end of the day of the return, all cores, defects and new part returns on the return cart near the counter are to be moved to a separate area for processing on the next business day. The following are needed supplies for the processing area. Make any notes about their uses: Pallet racking/wood shelf: Cardboard boxes: Shrink wrap: Clipboard for RPT130: Yellow highlighter: Core/defect stickers: by National Automotive Parts Association. All rights reserved.

11 Leader s Guide Organizing the Processing Area Discuss how to organize the processing area for returns as noted on the slide. Emphasize that batteries require a separate staging area, and discuss the requirements. Participant answers should be close to these: Pallet racking/wood shelf: Beneath the shelf are pallets, barrels, and boxes for the different types of returns. Cardboard boxes: for Red Label hazmat/chemical defects; Black Label non-core regular defects; and delicate items, such as Echlin computer cores, if you are returning them to the DC Shrink wrap: for the barrels and pallets Clipboard: to hold the Special Invoice Recap Report (RPT130) Yellow highlighter: to mark any missing parts on the Special Invoice Recap report by National Automotive Parts Association. All rights reserved.

12 Envelopes: Pens: RGN Forms: Battery Core Logs: Lists for how to handle returns: DC return ID labels: 2012 by National Automotive Parts Association. All rights reserved. 5

13 Core/Defect Stickers: Includes the store number The RPT130 Process Envelopes: That will later contain paperwork needed to complete the returns Pens: For the check-off process RGN forms: Used for the weekly returns to the DC Battery Core Logs: for marking off battery returns Lists for how to handle returns: These are the District or Headquarters lists that are sent to you. DC return identification labels: Specify which parts of with which returns 2012 by National Automotive Parts Association. All rights reserved. 5

14 Participant s Guide Getting Started Each morning, the person trained and qualified to do the core and defect process should retrieve the TAMS report, or RPT130, that printed overnight, and take it back to the clipboard in the Processing Area to start the process. For security purposes, this process should be rotated frequently amongst the qualified store personnel. Sequence for checking off items on the report: 1. Cores 2. Core Defects 3. Black Label 4. Red Label 5. New Parts 6. Batteries (listed among cores and defects, but must be processed separately) by National Automotive Parts Association. All rights reserved.

15 Leader s Guide Getting Started This slide builds in three steps to explain what tasks to complete each morning. Each morning, the person trained and qualified to do the core and defect process should retrieve the TAMS Special Invoice Recap report, or RPT130, that printed overnight, and take it back to the clipboard in the Processing Area to start the process by National Automotive Parts Association. All rights reserved.

16 The Basics of the RPT130 Process For every part you check, the basics are the same, but different types of returns require additional measures. Below are the steps to follow for Cores: Spot-check Ensure that at the time of the customer return, the correct core was enclosed and a core sticker was placed on the box, without covering up the bar code. Mark with X This indicates that the core has already been credited and processed through the system, and ensures that it does not get returned again. Check off RPT130 Place a check mark next to the item on the report to confirm that the item is on hand. Place in core container/pallet The items will accumulate here until they are prepared for the weekly pickup by National Automotive Parts Association. All rights reserved. 7

17 The Basics of the RPT130 Process This slide reviews the basic steps needed to be completed. NOTE that different types of returns require additional measures by National Automotive Parts Association. All rights reserved. 7

18 Participant s Guide Handling Defectives There are a few exceptions for handling defective part returns: Confirm that items have the correct labels attached. Complete an Alleged Defective Merchandise Tag, or for each defect. Items not properly tagged will be returned to your store. Do not cover up the bar code. Place small items in a plastic bag and attach the warranty tag to the bag. Keep each type separate, placing them in the appropriate container or pallet. and defects are to be placed in cardboard/class return type boxes. Each box must be 40 pounds or less by National Automotive Parts Association. All rights reserved.

19 Leader s Guide Handling Defectives Review the additional procedures for handling defective returns. There are a few exceptions for handling defective part returns: Confirm that items have the correct Alleged Defective Merchandise Tag labels attached. Complete an Alleged Defective Merchandise Tag, or defect tag for each defect. Items not properly tagged will be returned to your store. Do not cover up the bar code. Place small items in a plastic bag and attach the warranty tag to the bag. Keep each type separate, placing them in the appropriate container or pallet. Black Label and Red Label defects are to be placed in cardboard/class return type boxes. Each box must be 40 pounds or less by National Automotive Parts Association. All rights reserved.

20 What Goes Where Make sure you know what items go with which type. Headquarters maintains a comprehensive spreadsheet called Defective Product Handling by Product Line. Some district offices or DCs provide stores with an abbreviated version, often called a list that is laminated and posted in the processing area for reference. These resources specify what parts go back with which types of return. Be sure to obtain an updated list periodically, as these instructions do change. Check NAPAtraining.com for the current revision by National Automotive Parts Association. All rights reserved. 9

21 What Goes Where Mention the importance of knowing where to place defective products. Discuss the resources available. Some district offices or DCs provide stores with an abbreviated version, often called a What Goes Where list that is laminated and posted in the processing area for reference by National Automotive Parts Association. All rights reserved. 9

22 Participant s Guide Special Cases Because of their high value and delicate nature, some types of parts should not be handled in the same manner as ordinary parts. What are some parts that would fall into this category? To avoid risking damage to such items, place them in a separate box or special place in the processing area. During the weekly preparation for pick-up, these items will be placed on top of the return container before it is shrink-wrapped by National Automotive Parts Association. All rights reserved.

23 Leader s Guide Special Cases Review how to process special case returns. Participant answers may include: Echlin computer cores and ignition parts, A/C compressors, starters, and alternators by National Automotive Parts Association. All rights reserved.

24 Handling New (Resalable) Part Returns Since new parts are resalable, and thus, not typically returned to the DC or manufacturer, the process for new parts basically ends after they are verified during the RPT130 Process. For new parts: Check them off on the. Place them on a designated cart to be returned to by National Automotive Parts Association. All rights reserved. 11

25 Handling New (Resalable) Parts Returns Review the steps to handle new part returns as noted on the slide. For new parts: Check them off on the RPT130. Place them on a designated cart to be returned to regular stock by National Automotive Parts Association. All rights reserved. 11

26 Participant s Guide Handling Batteries Once you have completed the RPT130 Process for the other return types, go to the. Why should batteries NOT be placed on the floor? Describe the procedures you must follow if they must be placed on the floor prior to being placed on the returns pallet: Having a dedicated battery return cart not only simplifies the process and minimizes hazards, but it requires someone to lift and move the battery fewer times by National Automotive Parts Association. All rights reserved.

27 Leader s Guide Handling Batteries Review the steps for handling batteries as noted on the slide. Once you have completed the RPT130 Process for the other return types, go to the battery staging area. Participant answers should be similar to As a safety precaution, batteries should not be placed on the floor where someone might be expected to walk. This presents a tripping hazard, and can be very dangerous. If they must be placed on the floor prior to being placed on the returns pallet, be sure that they are placed out of the walkway, preferably behind a line painted on the floor a space dedicated to this purpose by National Automotive Parts Association. All rights reserved.

28 The RPT130 Process Battery Safety Before handling the batteries during this process, you must become familiar with all of the other safety requirements for batteries, such as personal protective equipment, the location of the eye wash station, lifting weight limits, and handling a leaking battery. All safety precautions related to batteries are discussed in the Battery Returns and Warranties lesson by National Automotive Parts Association. All rights reserved. 13

29 Battery Safety Emphasize the safety precautions to be taken before handling batteries by National Automotive Parts Association. All rights reserved. 13

30 Participant s Guide Battery Check-Off For each defective or core battery listed on the RPT130: Ensure it s in the. Mark it off on the RPT130. Verify it s on the Form (Defectives only). Mark/spray paint battery to avoid chance of double return. Move to return pallet, following battery safety guidelines. Mark it off on the by National Automotive Parts Association. All rights reserved.

31 Leader s Guide Battery Check-Off Review the steps in handling defective or core batteries. For each defective or core battery listed on the RPT130: Ensure it s in the battery staging area. Mark it off on the RPT130. Verify it s on the Battery Adjustment Summary Form (Defectives only). Mark/spray paint battery to avoid chance of double return. Move to return pallet, following battery safety guidelines. Mark it off on the Battery Core Log by National Automotive Parts Association. All rights reserved.

32 Worksheet Accumulation After you complete the entire daily check-off process, keep that worksheet of the RPT130 Special Invoice Recap report on a clipboard and keep it stored in the Processing Area. These worksheet copies will accumulate until the weekly return is processed, and will become part of the set of paperwork for the return by National Automotive Parts Association. All rights reserved. 15

33 Worksheet Accumulation Discuss the steps to be done after the daily check-off process by National Automotive Parts Association. All rights reserved. 15

34 Participant s Guide How to Lose a Return There are a number of common reasons why cores, defects, and new part returns go missing from the special invoice check-off process (the RPT130 Process). It is important that you become familiar with these causes so that you can quickly recognize them when they occur in your store, thereby using the RPT130 Process for its intended purpose: to reduce inventory losses related to returned parts. The above table describes some of the most common ways returned items are lost by National Automotive Parts Association. All rights reserved.

35 Leader s Guide How to Lose a Return Discuss the causes and resolutions for how different returns are lost as noted on the slide by National Automotive Parts Association. All rights reserved.

36 More Ways to Lose a Return Now, based on your experience, what are some other ways that your store can experience losses from a returned part? Record scenarios in the above table during the class activity by National Automotive Parts Association. All rights reserved. 17

37 More Ways to Lose a Return Organize an activity to have your participants identify other ways that their store can experience losses from a returned part. Split the participants into small groups and have them discuss additional ways returned parts can be lost. Re-group, discuss, and record their responses on a flipchart. If your participants have any difficulty, just get them to tell stories about such losses, and then help them organize their scenario in terms of our table. Now, here are some additional examples you can use to stimulate class conversation: Credited, but Never Picked Up: Anxious to clean up an account, a salesman credits a customer for cores, defects or new returns that he has not actually picked up. If he doesn t ever pick those items up, how would you catch it? The store would lose those credits. Returned to Customer, but Never Rebilled: A counterman, salesman or driver takes a core or defect out of the return (processing) area, because a customer needed that part back for his customer. But the customer was not rebilled. If you did not catch this situation, you will not receive the credit from the manufacturer and it may be returned a second time for credit. Demo Account Problem: A salesman or employee takes two parts out of the store on a demo account. When he returns to the store, he credits back those items on the account, but he actually only returns one of the two parts. Unless you actually received those items back from the salesman and personally handled the credit for them, you would not know they were missing until you went to resell them. Data Entry Problem: The counterperson mistakenly issues 11 return credits to a charge customer account, rather than the correct quantity credit of 1. Would your charge customer catch this mistake, and if they did, would they tell you? 2012 by National Automotive Parts Association. All rights reserved. 17

38 Participant s Guide Catching and Reporting Mistakes Catching and reporting mistakes is one of primary reasons that the careful and systematic review of the Special Invoice Recap has become known as its own process, the RPT130 Process. It is now a key loss prevention practice at NAPA. On the RPT130 report, a check mark should be written next to each identified core, defect, or new part return that has been accounted for. What two things must you do on the report for missing items? When you find a mistake, start by locating the invoice for the part in question. The invoice number is listed on RPT130. Each week, when the parts are returned to the DC, everything will need to be reconciled. For APG stores, the Paperwork Reduction (PWR) clerks in the district office usually help by checking your marked-up RPT130 reports against the weekly returns reports. If you handle these types of problems and adjustments on a daily basis, it will require less work later, and will help ensure that all records match up throughout the entire returns process by National Automotive Parts Association. All rights reserved.

39 Leader s Guide Catching and Reporting Mistakes This is a three-build slide on how to identify and report mistakes. What two things must you do on the report for missing items? 1. Highlight in yellow the entire line on the report for that item. 2. After you have found out why that part was missing, write an explanation next to the highlighted part, explaining why it was missing and whether it was found by National Automotive Parts Association. All rights reserved.

40 Lesson Knowledge Check Match the returns concept listed in the right hand table to the related term listed in the left hand table. Discuss your answers with the class by National Automotive Parts Association. All rights reserved. 19

41 Lesson Knowledge Check 1. Frame up purpose of the activity, which is to match the returns concept described in the right-hand table to the term named in the left-hand table. 2. Give students 5 minutes. 3. Review each answer, enlarging on the applications, where appropriate by National Automotive Parts Association. All rights reserved. 19

42 Participant s Guide RPT130 Process Lesson Summary Once parts have been returned to your store, it is critical that you manage their internal movement and storage carefully. The Special Invoice Recap Report, or RPT130, is now considered to be at the center of its own named process, The RPT130 Process. This process involves checking off every returned item listed on the report, to ensure that every part is accounted for, and it also is used to carefully note all discrepancies. In turn, these discrepancies will draw your attention to items that need to be investigated. Returns must be kept separate from your normal inventory stock, and non-salable items must be placed into separate storage areas by type: Cores, Defects with Core Value, Black Label Defects, and Red Label Defects. Failure to follow these processes can result in both financial losses and accounting errors by National Automotive Parts Association. All rights reserved.

43 Leader s Guide RPT130 Lesson Summary Answer any questions, and emphasize any key points that are a current focus at NAPA by National Automotive Parts Association. All rights reserved.

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