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SLM-TD022 Review Local Local Shortage
SLM-TD022 Review Local Local Shortage
No: R3-SLM-TD022
Date: 29-05-2012
Task description:
Review local-local shortage
1 Overview
“Review Local-local shortage” is part of sales location management working method - Monitor. This document will
support you to:
• Understand Local-local shortages and why the should be reviewed
• Understand the steps to perform the task
• Understand of the roles and contributions to this task
2 Reasons to start
This task is done to check how much Local-local shortages effect
• Perceived availability for the customer
• filling rate and visual fill levels
• availability
• efficiency levels
4 ARC Model:
Task Accountable: In-store Logistics Manager
Task Responsible: Goods Flow Manager
Task Contributor: Shopkeeper, Sales & Supply Support Manager, Sales/Logistics co-workers
Changes to this document since the previous edition will be indicated by a vertical line in the left margin Page 1
Review Local-local shortage
Reg. No: R3-SLM-TD022
Definitions
A detailed understanding of Local-local shortages is needed before starting this task. See the IKEA Concept
“Service Level and Shortage Concepts” [1].
Local-local shortage
Local-local shortage means that goods are in the store, but not available to the customer (in the sales location)
during store operating hours.
In order to secure a high level of commerciality and secure availability to the customer, local-local shortages
should be prevented by the goods flow manager and supported by the shopkeeper and sales/logistics co-workers.
It is important not to confuse the local-local alerts in the SLM tool with the KPI “local-local shortages”. These are not
measured at the same frequency. These differences are also acceptable, because each serves a different purpose:
• The SLM tool is used to optimize the planning process of sales location management
• KPIs give an indication how well a store is operating and in which areas improvement may be needed
The shopkeeper is alerted by the sales location management tool regarding articles that have local-local shortages.
This means he/she can check sales space sizes or discuss with the goods flow manager which alternative actions
can be taken. Additionally, Local-local shortages are visible in the GADD list “SL-040”.
Inventory differences
If the physical amount of stock does not match the amount in the system, the system cannot work properly. See
the IKEA Concept “How to reduce inventory differences” [5].
Items marked in red have no descriptions or are not confirmed at this time. Page 2
Review Local-local shortage
Reg. No: R3-SLM-TD022
6 Appendix
Terminology:
Definitions can be found in IKEA Words & Terms.
http://online.inter-ikea.com/wordsandterms/Pages/default.aspx
References:
The following documents support or elaborate on the task step definition described above:
[1] IKEA Concept: “Service Level and Shortages”
http://toolbox.inter-ikea.com/sites/IKEAConcept/Articles/Pages/
HTDIMainSection259.aspx?NodeId=c9695e0e-1bdc-467f-96e1-4879dc776205
[2] Task Description (TD-029): “Check maximum density”
[3] Task Description (TD-014): “Review sales space”
[4] Task Description (TD-004): “Review efficiency base”
[5] IKEA Concept “How to reduce inventory differences”
http://toolbox.inter-ikea.com/sites/IKEAConcept/Ideas/Pages/How
%20to%20reduce%20inventory%20deviations.aspx
[6] Task: “Review staff distribution“
[7] Task Description (TD-025): “Review replenishment point”
Revision History:
Edition Date Revision details Author
2.1 29 May 2012 Changed update frequency for local-local alerts Aaron Bialke
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