Stockroom/Receiving SOP 5.03 Backroom Stock
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- Christiana Harrison
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1 Overview A well-organized backroom is a foundation block in a well-run store. All merchandise stored in the backroom needs to be handled with the utmost care to aid in the reduction of shrink and ensure proper inventory controls. The information in this SOP outlines the policies and guidelines for the proper accounting and storage of all products received in the backroom as well as proper stock replenishment procedure. Provinces ON MB SK AB BC NB NWT Applicable in: Store types Retail Home Health Care Specialty Applicable in: Corporate Policy Management is responsible for establishing and maintaining a neat organized area in the backroom for damaged and outdated product waiting for disposition from the vendor. Returns area should be set up in the following format: Returns area is required to be worked and process weekly to ensure all credits are received as well as to maintain a clean functioning environment. Store Management is responsible for ensuring the backroom meets all corporate standards and that all store staff comply with the requirements. Store Management must work their backroom to clear excess inventory and eliminate the possibility of ordering products already on hand. Stockroom is required to be laid out as per the Best Way Project Standards found on the portal under Best Way and Project Phoenix Tab, including but not limited to the following guidelines: Separate stock by aisle number and zone (overstock) Promo and Fast Moving Overstock should be the closest area to the stockroom entrance. All designated locations should be marked off with different colour tape on the stockroom floor with specific space being made available to the receiving desk and receiving area and non-inventory items (fixtures) Colour guidance is outlined in the procedure below. Effective Date: October 25, 2013 Last Updated: December 6, 2016 Page 1 of 6
2 Regular overstock is integrated into the weekly ordering process to replenish the salesfloor and ensure product is always available to our customers. Refer to Front Store Merchandising SOP 4.10 Regular Orders Fast mover and promo overstock must be replenished daily to ensure our most crucial product is being replenished to the salesfloor frequently to serve our customers. The promo overstock section must be updated weekly on Friday to reflect the current promotion An employee is to be assigned to the 2PM Daily Replenishment task for the Fast Movers and Promo sections of the backroom daily. The name of the person and the day they are assigned to the task must be identified on the BEST way performance board. When sections are stocked from the backroom they must coincide with the ordering patterns of the store to ensure that backroom overstock is pulled and merchandised prior to placing an order for additional units. This will avoid ordering products that are not required and will help manage optimal inventory levels. The receiving door must always be closed and the alarm must be activated always. Store Management must use company approved processing carts when working the backroom. All perishable and short-dated items must be stocked from back to front (to ensure the oldest product is closest to the front of the shelf/peg) to maintain freshness and minimize short dated/expired products Products that are susceptible to theft must be stored in its designated home (unless mandated by RPLM or RD in which case the Fragrance Lockup can be used) and placed on the replenishment list for daily attention. Fragrances must be placed in the backroom lockup. A dedicated area must be assigned for Pharmacy. This dedicated area must be used for vials and supplies. The backroom must have a designated area for garbage and cardboard and all garbage must be placed in clear garbage bags according to Loss Prevention SOP #3.07 Waste Management. The designated area must be safely away from electrical panels, and not blocking emergency exits. The Ladder must be stored in compliance with Health and Safety Standards (secured using appropriate ladder hooks on the wall or chained to a bolted shelving unit. Products are not to be stored behind other projects on shelves. All products need to be visible and accessible for restocking the front shop. Products are not to be stored in totes and boxes, as it removes visibility to what items are in overstock. All products are to be placed on the shelves in the backroom. The approved exception to this rule is seasonal pack-a-way (clearly defined with a pack-a-way report taped on the outside of the box with the season marked on the pack-a-way in bold black marker). Old files for retention and seasonal packaways should be stored on higher shelves. Lower shelves are to be used for overstock to ensure easy access. Effective Date: October 25, 2013 Last Updated: December 6, 2016 Page 2 of 6
3 Roles & Responsibilities RD FSM ASM Sales Clerk/ Staff Post Office Clerk Rx Mgr Cosmetics Pharmacist Reg. Tech Rx Asst Delivery Driver Approved by: Validated/Reviewed by: Performed by: A. Procedure for Backroom Setup 1. Backroom should be setup and organized as per the illustration above. 2. Designate racks for each section by taping off the floor and shelves based on the colours 3. Designate spaces (receiving, staging) by taping of the floor 4. All sections are to be signed using the BEST way signage kit following the signage placement guide. Use magnate for shelf labelling allowing for adjustments 5. Use the following guidelines to maintain an organized backroom (please note: the positioning and placement of the racks will vary by store based on layout and holding capacity of the backroom): a. Blue (Promotional items): This section should be located closest to the sales floor. All promotional items are to placed in the blue sections. This section is to be updated weekly on Fridays to reflect the current Promo b. Green (Fast Moving items): This section should be located next to the blue section. Any product identified as a fastmover utilizing the shelf indictors should be placed in the green section. i. The items in the Blue and Green sections are to be worked on a daily basis. Refer to c. Grey (Overstock): This section is designated for all regular overstock items that does not fall into the blue and green section criteria. If possible: Effective Date: October 25, 2013 Last Updated: December 6, 2016 Page 3 of 6
4 i. The sections should be sorted by the predetermined zones on the sales floor ii. The products should be sorted by aisle d. Yellow (returns): This section is designated for all outdated, damaged and pilferage items. As well as any vendor products that require servicing from vendors (hallmark, FGX, cosmetic relines), recalls awaiting authorization, and merchandise with RTV opportunities for credit. i. Clear bins with proper signage is to be used sort merchandise ii. Store any product to be returned. Label all products with the following information: 1. Date of Return 2. Return Authorization (RA) Number 3. Vendor/ Destination e. Grey w/ X (designated skid space): This section is designated for: i. Bulk items (paper, household) ii. Merchandise not worked to the floor; requires attention f. Red (Receiving): This area by the receiving door is to be identified as a keep clear area. To be kept clear at all times unless in the process of receiving a shipment. g. Black (Storage/DNI): All non-merchandise (signing, fixtures, paperwork, etc.) is to be designated in the black section. The section is to be located furthest away from the sales floor. A. Regular Overstock Stocking Procedure 1. Identify the products required to be replenished to the salesfloor based on the ordering schedule of the predetermined zone 2. Utilizing the RF unit, scan each item to review the last 7 day sales history to determine if replenishment is needed i. If last 7 day sales history indicates units sold, placed replacement quantities on the stocking cart ii. If sales history indicates no units were sold, place product back on shelf and proceed to the next item 3. Once all the products are scanned for the zone, proceed to the salesfloor to replenish the floor 4. Prior to placing the product on the shelf, check the expiration dates of the product on the shelf and the product from the order/stockroom to ensure the product expiring first is always placed at the front of the shelf or peg hook. i. If there are no expiry dates evident, always place the stockroom merchandise behind the merchandise already on the shelf. ii. If the product is expired, or approaching expiry, utilize the Distressed Merchandise function on the RF for direction. 5. Look at the shelf tag to see if there is symbol displayed. If there is, attach an EAS tag to the products prior to placing them on the shelf. Place the tag as close to the bar code as possibly, being careful not to cover information and text on the packaging. 6. Once all products are stocked to the salesfloor, continue with the zone ordering process. B. Updating Promo/ Fast Mover Overstock section 1. Fast Mover products, identified by the yellow and green shelf indicators should be maintained replenished Daily at 2PM a. When working stock to the floor from a delivery, all items identified as a fast mover must be placed in the fast moving( green) section of the backroom b. If a new product has been added to the section, the item must be added to the daily replenishment list c. If a product is no longer in the section, the item must be removed from the daily replenishment list 2. Promo overstock section is to be updated every Friday to reflect the current promotional items a. Utilize the RF and a copy of the current flyer b. Scan all products in the promo section using the RF to determine the promo status i. If the product is no longer on promo, remove and place in the regular overstock section sorted by aisle ii. If the product remains on promo, leave in the promo section Effective Date: October 25, 2013 Last Updated: December 6, 2016 Page 4 of 6
5 c. Scan all merchandise in the regular overstock section using the RF unit i. If the product is not on promotion, place back on shelf and scan the next item ii. If the product is on promotion, move the product to the promo section 3. Create a Daily Replenishment List based on the Fast mover and Promo section. C. Promo/ Fast Mover Overstock Stocking Procedure 1. Retrieve the Daily Replenishment List and proceed to the salesfloor to identify products that require replenishment 2. Start from the closest or furthest from the backroom door 3. Check each item listed on the replenishment list and determine if additional quantities are required a. If replenishment is not required, mark the item on the specified day with a checkmark b. If replenishment is required, mark how many units is required to fill the shelf 4. Proceed to the backroom to retrieve all item requiring replenishment, once all the items have been checked on the salesfloor 5. Utilizing a stocking cart, place all items requiring replenishment sorted by aisle for easier stocking a. If all units of an item is removed from the section, delete the item from the list indicating the item is no longer in the backroom. 6. Start from the closest or furthest from the backroom door 7. Work one aisle at a time and work stock onto the shelves. 8. Prior to placing the product on the shelf, check the expiration dates of the product on the shelf and the product from the order/stockroom to ensure the product expiring first is always placed at the front of the shelf or peg hook. a. If there are no expiry dates evident, always place the stockroom merchandise behind the merchandise already on the shelf. b. If the product is expired, or approaching expiry, utilize the Distressed Merchandise function on the RF for direction. 9. Look at the shelf tag to see if there is symbol displayed. If there is, attach an EAS tag to the products prior to placing them on the shelf. Place the tag as close to the bar code as possibly, being careful not to cover information and text on the packaging. 10. Return the stocking cart to the backroom, once all products have been replenished to the salesfloor 11. Initial the replenishment list as well on the BEST way performance board to indicate the task as been completed. References Glossary of Terms Related Forms Related Policies Reference Materials Supplies Required DSD Direct Store Delivery FIFO First In First Out HABA Health and Beauty Aids OTC Over the Counter RA Return Authorization RF Radio Frequency wireless hand held devices used to access store applications SKU Stock Keeping Unit (product number or item number) Loss Prevention SOP #3.07 Waste Management Front Store Merchandising SOP #4.01 Daily Merchandising General Office SOP #2.07 Write Off of FS Products (Z Matrix) General Office SOP #2.08 Store Owned Promotions Management (BBS) Front Store Merchandising SOP 4.10 Regular Orders Stock Room Pick List report Effective Date: October 25, 2013 Last Updated: December 6, 2016 Page 5 of 6
6 RF Unit Self Audit Questions Procedure Step Question 1 A.1 Audit Question Are all store supplies, discards, fixtures and extra shelving organized according to the recommended backroom layout? Options Question 2 A.4 Is the Receiving Desk is clear and clutter free? Question 3 A.6 Were all promotional and seasonal deliveries placed in the designated area? Question 4 A.7 Question 5 A.9 Question 6 B.7 Were appropriate labels created and placed for products found on the shelves? Were all products to be returned stored in the designated area and labeled with: Date of Return, RA number, Vendor/Destination? Was all the necessary stock placed on a cart and put in the appropriate spot out on the sales floor until all stock was replenished? Effective Date: October 25, 2013 Last Updated: December 6, 2016 Page 6 of 6
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