Inventory Control SOP

Overview

Inventory Control is a critical part of running an efficient, accurate, and profitable location. General inventory management requires oversight and daily investigation of both inbound and outbound product movement. This document outlines an understanding and requirements to maintain inventory integrity.

Failure to adhere to the standards set forth may result in claims or a deduction from invoice for shortages, damages, or lost products.

Inventory Management Responsibility

It is the responsibility of the LDC leadership to oversee and understand the movement of products in and out of their LDC location. This also includes virtual inventory relating to No Ship Returns (NS Returns.)

Inbound Inventory

Inbound inventory comes from two different scenarios:

• As delivery documents are ordered on shuttles, products are picked at the RDC and delivered to the LDC for fulfillment via shuttles. Once a document is loaded on a shuttle, which can be verified using the Shuttle Load Sheet (also known as LDSH), it is the LDCs responsibility to report any missing, lost, damaged, or otherwise shorted inventory from the shuttles. Failure to report these by 10:00a local time on the same day using the Shortage and Overage process may result in the LDC becoming responsible for the product.
  • All suspected products that are loaded on the shuttle and arrive at the LDC that haven’t been reported as missing, lost, damaged, or otherwise shorted become the responsibility of the LDC. The transfer of ownership takes place when the LDC signs the shuttle BOL paperwork.
  • The product remains the LDC’s responsibility throughout the lifecycle of the product until it is POD (proof of delivery) and confirmed as delivered with signed BOL paperwork from the customer. Without a signed BOL from the customer, the LDC may still be held liable for product losses and damage. If the LDC uses contracted delivery teams, the responsibility is still on the LDC for inventory control and performance of the contractors.
• Product is brought back to the dock by the delivery teams. This could be a scheduled return/pickup, or a failed delivery attempt. Although the management steps differ downstream, it is the LDC’s responsibility to manage the product.
  • Returns:
    • Returns that come back to the dock must have the return worksheet attached to the product for inventory continuity.
    • The return document number must be verified with the product model and serial number that are physically on the product UNLESS it is an A-stock, brand new in the box Whirlpool product. Do not trust paperwork that has been attached to the product by the customer. Do not let their potential mistake become your responsibility.
    • If the return is part of a multiple BOL return with a return coversheet, for instance an HDA pickup, all return shortages must be captured while on-site with the customer prior to departing. The BOLs and coversheet must be noted of the shortages and signed by the customer. Although the drivers are to take this step, it is up to the LDC to ensure it is completed.
      • For any shortages on a multiple BOL return with a return coversheet, an email must be sent back to the proper return team who scheduled the return noting the shortages with a copy of the signed BOL that highlights what was shorted. If this is not done by the LDC, it is assumed the LDC picked up and took possession of all items on the BOL. These will become the responsibility of the LDC whether they have the products or not.
    • All returns must be Post Good Received (PGR) using SAP within 24 hours of receiving them on the dock. This releases the hold on the account between the customer and Whirlpool.
      • If a PGR is completed in error, it must be resolved right away following the PGR reversal process. Failure to do this will result in the LDC remaining responsible for the product.
      • If any scheduled return/pickups were not complete, they must be addressed properly in Route Planner/SAP. Returns/Pickups do not get automatically replanned. Return documents are one and done. If a failed pickup happens, a new return document must be requested from the proper Whirlpool return team.
      • Product that has been PGRd can then be properly stowed in the correct return lane. Locations that do not have mixed returns must have a Non-A and an A return stow and the product must be sorted accordingly. An A stock return is considered anything brand new in box. Anything else is a Non-A return. Improper mixing may have implications on inventory accuracy.
    • Failed Delivery Attempt
      • The LDC must conduct driver debriefs daily with each delivery team to fully understand why the product is being returned to the dock. The appropriate steps must be then taken:
        • If it’s due to an incorrect customer window in Route Planner, the LDC will need to look up the proper contact at Whirlpool using ZNOM_ACC in SAP to find the contact and send them an email with the customer information and the incorrect window. Whirlpool@AllegroHomeDelivery.com must also be copied.
          • The stop must either be marked MISS (missed with attempt) or MISN (missed with no attempt) depending on if an attempt was made or not. This will replan the delivery for a future date and reserve capacity to be completed. Set the product aside in a staging area in preparation for the new delivery date.
            • If the delivery team marked the stop incorrectly in MobileLink, it must be adjusted to the correct status in SAP by 10am the following morning. If the mistake created a new appointment that is not necessary, cancel the appointment using the CRED (Cancel Redelivery) event in SAP.
          • If it’s due to a customer refusing delivery, the LDC will need to contact the sales team member at Whirlpool to address the issue. The proper contact can be found using ZNOM_ACC in SAP. Send an email to that contact with the delivery document number and details. Whirlpool@AllegroHomeDelivery.com must also be copied.
            • The stop must either be marked MISS (missed with attempt) or MISN (missed with no attempt) depending on if an attempt was made or not. This will reschedule the delivery for a future date and reserve capacity to be completed. Set the product aside in a staging area in preparation for the new delivery date or a return if the customer moves forward with cancellation.
              • If the delivery team marked the stop incorrectly in MobileLink, it must be adjusted to the correct status in SAP by 10am the following morning. If the mistake created a new appointment that is not necessary, cancel the appointment using the CRED (Cancel Redelivery) event in SAP.
            • If it’s due to a vehicle mechanical failure or a driver-related issue, the LDC must call the customers to alert them that their delivery will need to be rescheduled. The stops need to be marked as MISS (missed with no attempt) and the product must be set aside in a staging in preparation for the new delivery date.
              • If the delivery team marked the stop incorrectly in MobileLink, it must be adjusted to the correct status in SAP by 10am the following morning. If the mistake created a new appointment that is not necessary, cancel the appointment using the CRED (Cancel Redelivery) event in SAP.
            • If it’s due to found damage at the time of delivery, the LDC must ensure the driver properly marked the delivery in MobileLink. The secondary reason code needs to be Damaged so that a reorder is generated. Set the damaged product aside in a staging area until the RA and return document are created. To expedite this process, the LDC can lookup the return team email address in SAP using ZNOM_ACC. Send an email containing the delivery document number, model, and serial requesting an RA and return document number due to damage. Whirlpool@AllegroHomeDelivery.com must be copied.

Outbound Inventory

Outbound inventory comes from two different scenarios:

• As the product is received at the dock to be delivered, it is critical that the LDC ensure the proper product is loaded on the proper delivery routes. Product for each route must be counted to ensure accuracy. It is possible for products to be mis-staged or loaded on the wrong truck which will cause downstream escalations. These must be caught during load out.
  • If it is identified later that a product was loaded on the wrong route, the LDC will first attempt to solve the same day. If that is not possible, the product must be brought back to the dock and replanned for a for a future date. The customer must be called and informed of the shortage. The delivery team that should have had the product must not complete that product line in MobileLink and will need to mark the product as missing on truck.
• Return Stock Transfers (also known as return shuttles) require a high level of attention to ensure accuracy. This starts with accurate inbound inventory practices listed above for handling return/pickups. By validating each return was brought back to the dock, attaching the return worksheet, verifying the model and serial number, PGRing the product within 24 hours, and staging the product in the proper return stow will set up the downstream stock transfer for success.
  • LDCs must pull an inventory report weekly to validate their on-hand inventory. Use the ZPIP transaction in SAP to pull the report. LDCs are to use the ZPIP report to validate the counts physically on the dock by model number. Any discrepancies must be immediately researched and resolved.
    • An example could be an overage. ZPIP may say counts are lower than what is on the dock. This discrepancy could be a product that hasn’t been PGRd yet is found. PGR the product and the count in ZPIP will be updated and reflected properly. If this is not the case, the LDC must research to determine where the overage came from.
      • If it is determined it was a return that should have been loaded on a previous return stock transfer, the LDC must notify Whirlpool@AllegroHomeDelivery.com and the inventory control team at Whirlpool to correct the counts and return the product.
    • Another example may be a shortage. ZPIP may say counts are higher than what is on the dock. The LDC will need to investigate to determine where the missing product is.
      • If it is determined it was improperly loaded on a return stock transfer and should not have been, the LDC must notify Whirlpool@AllegroHomeDelivery.com and the inventory control team at Whirlpool to correct the counts.
    • Depending on the velocity of returns at the LDC, once your return stow reaches approximately 90%+ full, a return stock transfer must be ordered.
      • The LDC will need to accurately complete a Ding and Dent Load Sheet
        • This must be validated by reviewing the product model and serial numbers in the return stow. Any data entry issues will result in a cut from the return stock transfer request and delay getting the product off the dock.
      • The LDC will then complete an LDC to RC Request which includes uploading a copy of the finalized Ding and Dent Load Sheet.
        • The LDC will receive confirmation that the request was received.
          • If any product was cut from the request, the product must be immediately pulled from the return stow and investigated as to why it was cut. The cut product must also be noted on the Ding and Dent Load Sheet to ensure those products are not mistakenly loaded.
            • It could have been a data entry error, the product may not be PGRd, or it could have been missed from a previous return stock transfer. No matter the reason, it must be researched and properly addressed that day by the LDC.
          • On the day of the return stock transfer, the LDC must floor load only the approved, non-cut, returns from the stock transfer request. Any misloaded product will become the responsibility of the LDC.
            • If it is determined that a product was misloaded or not loaded and should have been, the LDC must notify Whirlpool@AllegroHomeDelivery.com and the inventory control team at Whirlpool to correct the counts and return product as needed.
            • The LDC must provide a return BOL to the shuttle driver and retain a signed copy to be filed.
          • Once the return shuttle is loaded, the LDC must pick and PGI (Post Good Issue) the product that was loaded on the shuttle in SAP the same day. Failure to do this will result in the LDC remaining responsible for the product that has left the dock.
          • After the return shuttle has been unloaded at the Return Center, the LDC may receive communication confirming the shipment or a discrepancy was found.
            • Discrepancies must be researched immediately and resolved the same day.
            • The LDC will pull a ZPIP inventory report and validate counts are accurate post return stock transfer. Any discrepancies must be researched and addressed immediately.

No Ship (NS) Returns

• No Ships are a document that will impact ZPIP (in SAP) inventory levels. These signal to an LDC that no actual products will be picked up physically (or shipped out physically.) These occur for a few reasons:
  • The customer signed the POD short and needs credit.
  • The LDC lost the product when delivering to the customer.
  • The LDC may have misdelivered the product to another customer and cannot determine which customer has the product.
  • The POD provided by the LDC is insufficient to provide proof that a customer received the product.
    • In a situation where despite a sufficient POD, the Whirlpool team still decides to credit back the customer, a Goodwill Credit will be applied.
  • LDCs in disagreement with a NS Return should provide evidence as to why they should not take the return to Whirlpool@AllegroHomeDelivery.com and the Whirlpool inventory control team.