Archived What's your opinion? Work or not work?

[No I in Team]

Just by looking at Store Modernization and E2E, epic failure.

What they're attempting to do is a form of JIT (Just in Time Inventory). As soon as one unit is consumed, another is delivered.

Everyone will have to know and understand Turn Around Time (TAT) along with inventory management to be successful at JIT. TAT is not just the time it takes from the sale to the back door, it's everything associated with replenishing the system. The end user has to be able to control the incoming freight and inventory levels to be successful. If not you'll be way under or over with the occasional being close.

Then you will be required to constantly monitor incoming shipments, current inventory and past due shipments for integrity. You have to cycle count and reconcile frequently. If not, you will be out or way over.

The goal of such inventory management systems is to increase inventory turns while reducing cost. The key to achieving this is through freight utilization. Too many shipments, material handling cost along with freight cost go up. Not enough shipments and your either running out or over. If your running over, you look at case pack quantities and other capacity issues. Splitting cases always increases cost substantially. So you better have a fairly healthy cost savings to cover this added expense. Master carton cases are not included as an extra cost as they should be already be factored in.

Both Store Modernization and E2E will fail miserably in supporting the new system as you do not have the required control of inventory management let alone the hours needed.

Control is based within the system and Spot's Dog House in Minneapolis. That's just a little too far away. IMO they'll either relinquish control or go to plan "B" with casualties.

I believe the cost of such will eliminate a significant number of large footprint LV stores (under 27M annually). We simply will not be able to support the amount payroll required to carryout the process.

We can't afford the current process (hours anyone?) nor can we adequately staff our current process. We're screwed before we get the first shipment.

 

[FlowTeamChick]

They send only what needs to go out each day and that means less pushing, backstocking etc so more time to focus on the guest.

Most shifts, I push the "H" part of HBA. If product isn't on the shelf, the guest can't buy it, at least not on their Target run that week. Happens too many times, and they won't be shopping there anymore. Between crushed packaging and mis-picks, there are times that we have none of a product that typically comes in re-packs.
Sometimes, there's a lot of back stock, but that's usually when a major transition is coming up or multiple end caps that will be set soon. More often, there's not a ton of back stock.