Client was about to take inventory when I first arrived on site. After being shown their processes I suggested some changes. The inventory taken prior to my arrival took 8 people 4 hours. After some minor prep the first new “style” count was done in 4 hours with 4 people. Saving 16 hours. The 2nd “style” count was done in 2 hours with 2 people. Saving 28 hours. Including the prep it’s closer to 26 total savings. This client is taking inventory 12 times a year. 26x12=312x$15=$4680. Savings are calculated at min $15 per hour wage. You probably don’t have min wage staff doing your counts. Additionally, out of a sku count of 300, 38 skus were found that were not in their inventory. Are there unknown skus on your shelves?

How can I help save your business $$$?

While visiting a client at a trade show, I noticed there were “Made in the USA” labels on the some of their garments but not others. When I asked, they said that the fabrics were from all over the world but everything was cut and sewn in Los Angeles. We discussed that the products would qualify as “Made in the USA” and they agreed, stating that sometimes they just ran out of the labels. I looked around and noticed there were no “Made in the USA” signs in their booth. After our brief conversation I suggested that they make some “Made in the USA” signs for future shows. Placement should be up high near the aisle edge of the booth so attendees walking up the aisle from either direction would see them. See them before even seeing their products or company name.

Flash forward 6 months to the next show. I’m walking up the aisle and came upon their booth, my sign suggestion now in place. And the booth, well, it was packed! Let me say, they had a good business to begin with. Prior to my suggestion, this was a family run business, a mom and her 2 adult daughters with others in LA at their production facility. The 3 of them were their whole show staffing needs. Their booth was rarely empty and that was always enough to serve their customer base. After the “Made in the USA” signs went up? Not anymore. There were now 3 more people writing orders. They said that they have been overrun at the recent set of shows and most new customers they were writing told them the “Made in the USA” signs made them stop to look. They said they were so overwhelmed at the first show of the new season that they flew one person out to help. The next show they brought 2 and, in the end, realized they needed 3 extra people for order writing during the peak hours of the shows.

 How can I help your business increase sales?

During a tour of client’s facility, the dock bell rang. UPS was here. I watched as one crew member met the UPS driver who said “Only got 2.” Within a minute or two 6 other crew members gathered around the dock area, including the Warehouse Manager. The first crew member did not say anything to any of the other crew members and 7 people stood around watching the UPS driver unload 2 boxes. The boxes were signed for and left on a pallet by the open dock door. Slowly the group broke up and all went back to their specific tasks. Clearly the manager needs training. When I asked him why everyone seemed to show up he said “that’s just what happens.” Turns out he was promoted into the position based on the Peter principle, not that he wasn’t deserving, but he had zero management experience. And with some management training it might not be a Peter principle promotion at all, he had just not been trained to see what I saw. We spoke about how 1-2 crew members should be trained to do daily receiving’s and that’s all it should take, with him as a 3rd backup. The other crew members should be instructed not to be bothered from their tasks when deliveries arrive.

When the tour was over, the 2 boxes were still on the pallet. I asked how long the boxes would be there. The manager told me it could be a couple days if it wasn’t something that was needed right away. Turns out they had an issue of keeping things in stock. The company grew to fast for proper systems to get developed. What a great problem to have!! A problem that when corrected means more profit to the bottom line.

What can I see in your business to help identify and solve processes or issues that will result in better loss prevention and labor $aving$!!!!