Your Shrink Action Plan – Part 2 of 4
Red Flags You’re Overordering in Fresh Departments
Last week you established your baseline. This week, learn to spot warning signs that you’re creating shrink through overordering—before product hits the shelf.
THE CORE PROBLEM
A large percentage of shrink comes from having too much inventory on hand. The issue isn’t what you’re selling—it’s what you’re buying.
SIX CRITICAL RED FLAGS
#1: Consistent Day-of-Week Markdowns
Marking down the same items every Wednesday? Your Tuesday delivery is too large. Reduce that delivery by 25%.
#2: Full Case Displays
Entire cases on display signal overstock. Start merchandising smaller quantities, restocking throughout the day.
#3: Back Stock Over 48 Hours
Product in coolers longer than two days? Your par levels are too high.
#4: Regular Donations of Same Items
Patterns in donations reveal ordering problems. Cut orders 30-50% on repeat items.
#5: Staff Comments
“We always have too much of this” is valuable intel. Ask department staff weekly what you’re overordering.
#6: Markdown Sticker Fatigue
Applying dozens daily? Fix ordering, not symptoms.
THE TWO-WEEK TEST
Pick your highest-shrink category. Reduce ordering by 20% for two weeks. Track sales, shrink, and out-of-stocks. Most grocers discover they can cut orders without hurting sales.
SMART ORDERING TOOLS
FMS Track-It analyzes your markdown patterns and identifies consistently overordered items. The system tracks which products require frequent markdowns, helping you adjust par levels before shrink occurs. Historical data shows optimal order quantities based on actual sales and waste patterns.
YOUR QUICK WIN
This week, identify ONE overordered item. Cut the order quantity in half for two weeks and measure the impact.
SHARE YOUR STRATEGIES
These red flags come from real-world experiences shared by grocers tackling the same challenges. The G.O.A.L.S. Share Group meets annually to exchange proven strategies for improving operations and reducing shrink. If you’re a VP or Director of Operations, Loss Prevention, or Asset Protection, discover how peer insights can accelerate your results. Learn more about The G.O.A.L.S. Group
Next: Five quick wins to reduce front-end shrink
