Negative On Hand Prevention

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Erin Mason
6 years ago
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1 Negative On Hand Prevention The best way to prevent negative on hand (NOH) is through training and awareness of inventory processes. All employees must have a basic understand of how inventory works. It s your responsibility to make sure everyone in your store is familiar with the following concept. Inventory Flow How do inventory quantities change? It s important for everyone in our organization to understand how they can affect inventory. The ideal way for an item to travel through our system is to enter through Purchase Order and exit through sale. Transfers, Adjustments, Returns and Voids are other transactions that affect inventory quantities but should be kept to a minimum. Sometimes it is necessary to move items into the offline inventory. In the offline inventory an item is still part of your store inventory but does not reflect in your on-hand quantity because it is not available for sale. Items in the offline inventory can be testers, damages, or items waiting to be returned to the suppliers. Return, Voids, and Sales can be performed by any associate with authorization. Manual Adjustments can only be performed by Corporate. Transfer and Purchase Orders can only be performed by a Store Manager or authorized Key Holder Point of Sale Anyone operating a register should be aware of what s happening on the screen. Although it s important to be quick and efficient it is equally important to be ACCURATE. (PRINT SCREEN) The screen shot above displays a message that appears when an item is about to become a NOH. It is a warning message advising you that the quantity you are trying to sell will cause the on-hand quantity in RMS to fall below zero. The following steps should be taken 1. Confirm that the item description on the screen matches the item you are selling 2. If the Store Manager is available, you should request assistance to complete the sale 3. If the Store Manager is not available, you may complete the sale by clicking on Accept Requested and enter the item information on the NOH form. (PRINT SCREEN) The screen shot above displays a message that appears when an Item Look Up code or Alias is not found in our system. The following steps should be taken:

2 1. Request assistance from your Store Manager, if available. 2. If your Store Manager is not available, you may click on Close to continue then Press F2 to perform an Item Look Up. Refer to the Finding Items procedures. 3. After completing the sale, you should notify the Store Manager when he or she becomes available PURCHASE ORDERS Negative On Hand prevention begins upon receiving items. During the receiving process a Store Manager has an opportunity to ensure that all items entering the store are scanning properly. If the item scans properly when it is received it will travel through the inventory process without causing any discrepancy or additional work in the future. If the item does not scan properly, the Store Manager must take the steps to make the item scan properly. Barcode not scanning If the item does not have a barcode or the barcode is obstructed by any kind of packaging process (shrink-wrapping, tin box, metallic printing) the Store Manager should print and apply a manual barcode label. Alias not accepting If an alias is not accepted by RMS for any reason (duplicate, not found, wrong item) the following steps should be taken: Duplicate alias-if an item is a duplicate alias item, you must find the correct Item #, using the Look Up/Find function. You will then print and apply a manual barcode label with the correct Item #. Item Not Found-If an item is not found in the database it may need to be created or have an alias added t o the system. First, locate the item using the Look Up/Find function. If the item is found, you must put through a request for Corporate to add the alias using the Add/Change Alias Request form on the Perfumes 4 U Portal. If the item is not found you, must hold the item in the back room and enter the information in the Create Item Request form on the Perfumes 4 U Portal. The PO can be partially closed until the item is resolved. Wrong Item-If the item scanned does not match the description on the screen, there are two possible reasons. Either the alias was previously added to the wrong item or the alias on the current item is incorrect. Find and use the correct Item #to receive the item and place a manual barcode label on the item. Then report the discrepancy in the Add/Change Alias Request form on the Portal. Place the request in the Change Alias section because an alias is already in the system but needs to be moved. Transfers In/Out

3 Transfers are used to add or remove items from your inventory. A transfer can be used to remove damaged merchandise, re-distribute inventory between stores and to return items to the supplier. When processing a transfer, be sure to scan all items and review item descriptions ad quantities to ensure to accuracy of both. NEGATIVE ON-HAND RESEARCH The Store Manager should review negative on-hands on a weekly basis. To review the NOH s, go to the Perfumes 4 U Portal and select Neg On-Hand Rpt on the Navigation menu. From the drop down menu, select your store. Click Go and the NOH(s) for your store will populate the screen. You can export the report as a CSV file to print and review. Using this report, you count the actual quantity of the item(s) on the NOH report. You should also find out the reason for the item becoming a NOH. Once you have completed the search, you go back to the Portal and select the Inv. Control/Loss Prev. on the Navigation menu. Select NOH Adjustment Request. Fill in the appropriate columns and Submit the form. This submission does not correct your inventory. Based on your input, Corporate will set up a Physical Adjustment page for you to adjust your inventory. (SHOW EXAMPLE OF A COMPLETED FORM) Item Not Received-The item became negative because it was sold but never received. To confirm this you can check for an open PO by looki Wrong Look-Up-The associate rang up a different item than what they are selling, making that item an NOH. You should look into why an associate has to do a Look Up on an item. Is the item scanning incorrectly because it has the wrong alias attached to it or does it not have an alias attached to it so the associate was forced to do a Look Up. We can reduce the error in inventory and reduce the NOHs by assuring that the all items scan. The less that an associate has to do a Look Up, the less they have a chance to select the wrong item. No Barcode or Wrong Barcode Label-In cases like Duplicate Alias, if the proper barcode label is not on the item, again, if an associate has to do a Look Up, there is a good chance they will pick the wrong item. You should also look at putting bar code labels on items that do not scan because of shrink- wrap issues, metallic printing or unusual packaging, like tin cans. RMS Reports/Screens Here are some helpful RMS reports and screens when researching negative-on hands.

4 Item Properties To get to the screen above, go to Database, select Items from the drop down menu, Enter the Item #- Click on Properties. The Item Properties screen contains a lot of useful information on any particular item. The Alias, General, and Inventory tabs can be useful for NOH research. You can also use the Label button in the Properties screen to quickly print labels.

5 Item Movement History This report lists every inventory transaction related to the Item# within the date range specified. This can be found by clicking Movement in the Properties screen. The Item Movement History report can also be accessed by clicking on Reports, selecting Items from the drop down menu and clicking on Item Movement History.

6 Find Items The Find Items screen can be the most useful of all your resources when looking for a cause for a negative on-hand. On this screen, you can try different descriptions of an item to quickly view a list of possible items that may be scanning as the NOH item. Look for items that may be easily confused for your NOH item like similar description, different size, different gender, tester/not tester or different strength. Consider the quantities of each tem as well as to help narrow down your list of suspects. Once you have a possible item that is causing your NOH, you can confirm your finding by counting that item.

Mini Scanner New Purchase Order... 3

Mini Scanner New Purchase Order Mini Scanner New Purchase Order... 3 Mini Scanner Dialog Box... 4 Create Purchase Order... 5 Acknowledgement... 6 Acknowledging a Purchase Order... 6 Creating a Service