The document outlines an inventory accuracy improvement plan with the goals of maintaining less than 0.01% stockouts and meeting inventory accuracy requirements. It details the current state of inconsistent cycle counting, lack of adjustment monitoring, excess SKU locations, and minimal training. The future state and implementation plan involves establishing a dedicated cycle counting program, monitoring adjustments more closely, consolidating SKUs based on space utilization, and providing comprehensive training programs.

1. INVENTORY ACCURACY
IMPROVEMENT PLAN

2. ●Bin accuracy is 89.5%
●Inventory accuracy is 96%
●Excessive “No Location Summary” units
●Stockouts during sales was 2.5% per 1k
orders
CURRENT STATE

3. ●Meet inventory accuracy requirements
●Maintain .01% stockout levels
FUTURE STATE

4. 1. Consistent cycle counting program
2.Monitor inventory adjustments
3.Effective space management
4.Thorough training of IC associates
IMPLEMENTATION PLAN

5. CYCLE COUNTING PROGRAM
CURRENT STATE
Inconsistent counts
Three and under
counts
Variances are not
confirmed
FUTURE STATE
Dedicated cycle
counters
10 and under counts
Confirm variances
before accepting
adjustments

6. MONITORING ADJUSTMENTS
CURRENT STATE
“CC” adjustment code
used for all
transactions
Daily adjustments are
not monitored
FUTURE STATE
Utilize Adjustment
Reason codes
Obtain and review
adjustment report

7. SPACE MANAGEMENT
CURRENT STATE
SKUs are spread
across multiple
locations
Excess distance
between additional
locations
FUTURE STATE
SKU consolidation
based on cube
utilization
System directed
putaway for
identical SKUs

8. TRAINING PROGRAM
CURRENT STATE
Minimal training on
new associates
Inconsistent training
across the board
FUTURE STATE
Comprehensive
training and
satisfactory test
completion
Analytical aptitude
test for core
associates

9. IC CPU AND HITTING COSTS

10. MEETING CPU GOALS IN PRODUCTION
Receiving 2 million units Shipping 2 million units