Good day 

Below is the results of Physical Count and Cycle count as of August 2021 

 
For Makati Store 
 
PHYSICAL COUNT CYCLE COUNT FEB TO CYCLE COUNT AUGUST
JAN 2021 JULY 2021 2021
TOTAL FREEZE COST           345,944,830 316,371,491.88 72,320,376
ACTUAL COUNT COST            228,686,309 312,201,192.30 75,607,848
VARIANCE 117,258,520 -4,167,181.60 3,287,471
VARIANCE  % -34% -1% 5%
 
SKU Analysis 
 
LOCATION WH SA TOTAL
# OF SKU SUBJECT FOR CYCLE COUNT 6,892 6,604 13,496
# OF SKU WITH VARIANCE 588 2,765 3,353
# OF SKU WITHOUT VARIANCE 6,304 3,839 10,143
% OF SKU WITHOUT VARIANCE 91.46% 58% 75%

 
The Cycle Count for the Month of August were consist of the Following:

HIGH VALUE HIGH VALUE HIGH VALUE AUTO TOTAL

WINE MILK CIGARETTE REPLENISH
TOTAL FREEZE
COST 902,262.50 0 1,444,205.85 69,973,908 72,320,376
ACTUAL COUNT
COST 935,591.66 0 1,435,494.91 73,236,761 75,607,848
VARIANCE 33,329.16 0 -8,710.94 3,262,853 3,287,471
VARIANCE  % 4% 0 -1% 27% 5%

This is the Line Graph presentation of High Value Item since the start of the regular cycle count.
Negative Variances of August will be considered as losses and will be charged to the securities.
For the others stores count of High Value Items only started this August. Variances are from
wrong physical count and other wrong transaction happened earlier this year.
 
TRINOMA ALABANG NUVALI
TOTAL FREEZE COST 2,023,577 69,318 85,865.82
ACTUAL COUNT COST 1,754,475 21,363 81,278.44
VARIANCE -269,101 -47,955 -4,587.38
VARIANCE  % -13% -69% -6%
  

As of August 31 , 2021 there are still 7,016 SKU's with negative on hand that needs to verify
 
MAKATI TRINOMA ALABANG NUVALI TOTAL
WAREHOUSE #  OF SKU REPORTED
0 592 645 758 1,995
WITH NEGATIVE ON HAND
SELLING AREA #  OF SKU REPORTED
417 1,156 764 2,684 5,021
WITH NEGATIVE ON HAND
 
 Recurring reasons for negative on hand  are as follows.
 
1. Wrong Entry of quantity in JDA MMS
2. Incorrect count during physical /annual count and Cycle Count. 
3. Physical transfer of items from WHSE to SA  without inventory transactions performed at JDA-
MMS (Undocumented Transfer)

Sample of Undocumented Transfer detected during the cycle count.

Store: 123 and 114

System On Hand: 123(WH): 312pcs 114(SA): - 326pcs
Actual on Hand of both location: 0

The following were also noted during review

 
I. ITEM WITHOUT DISPLAY (STOCKS ARE AT WAREHOUSE ONLY)

MAKATI  TRINOMA ALABANG NUVALI TOTAL

REPORTED SKU COUNT 463 82 24 7 576
TWO WEEKS QTY 33,150 11,643 1,454 487 46,734
AGO TOTAL RETAIL VALUE 3,216,478 760,667.95 131,493.40 18,540.80 4,127,180.15

AS OF   SKU COUNT 357 100 37 16 510

SEPTEMBER 03,  QTY 20,155 13092 1,742 551 35,540
2021  TOTAL RETAIL VALUE 2,110,853.40 830,640.60 126,787.35 47,628.85 3,115,910.20

# OF SKU RESOLVED 151 58 16 6 231

SAME SKU AND QTY REPORTED TWO

175 24 8 1
WEEKS AGO 208

ADDITIONAL SKU 176 76 29 15 296

Based on the Table, from the total of 576 SKU last month, 231 has been resolved and 296
SKU were added as no display in selling are all store. Calling the attention of Makati stores
to address and resolve the issue since too many additional SKU every month.

II  I PC ITEMS

 MAKATI  TRINOMA  ALABANG  NUVALI  TOTAL

 REPORTED AUGUST
 SKU COUNT 689 1,175 675 590 3,129
05, 2021
 RETAIL VALUE 124,503.01 289,124.91 109,087.26 105,270.45 627,985.63

 AS OF SEPTEMBER,  SKU COUNT 783 1320 772 663 3,538

2021  RETAIL VALUE 213,580.46 298,123.81 195,568.10 112,994.95 820,267.32

 SAME SKU AND PRICE THREE WEEKS AGO 258 475 266 222 1,221
 WITH CHANGE IN PRICE (MARKDOWN) 1 1 2 1 5
 WITH CHANGE IN PRICE (MARKUP)) 7 4 13 14 38

 SOLD 423 695 394 353 1,865

NEW  SKU WITH 1 PC 517 840 491 426 2,274

As of September 03, 2021 there are 3,538 SKU with 1pc quantity, 1,221 of it is part of 1pc
quantity last reporting with the same retail price, while 5 has markdown and 38 has a markup
and a total of 2,274 SKU were added with a total retail value of 820,267.32.

III. A. RECEIPT TRANSACTIONS

MAKATI TRINOMA ALABANG NUVALI TOTAL

# OF POSTED TRANSACTIONS 2,214 1,504 1,617.00 834 6,522
POSTED AMOUNT 195,753,083.77 138,619,069.57 106,065,176.04 35,532,332.68 369,904,486
#  OF RA WITHOUT RCR 0 0 0 0 0
 # PO WITH RA ADJUSTMENTS 55 28 103. 116 302
 
 
6,522 transaction was posted transactions with the amount of 369,904,486 were subjected to
PORA Adjustments or reversal due to incorrect posting of receipt transactions mostly error in qty
encoded by warehouse.
 
 
Breakdown of PORA  adjustments are as follows

ISSUES MAKATI TRINOMA ALABANG NUVALI TOTAL PERCENTAGE

ERROR IN QUANTITY POSTING 28 28 29 6 91 18%
ERROR IN COST DURING PO CREATION 27 191 74 110 402 82%
TOTAL 55 219 103 116 493 100%

II. B. DIRECT TO STORE DELIVERY

MAKATI TRINOMA ALABANG NUVALI TOTAL

# OF POSTED TRANSACTIONS 692 936 427 151 2,206.00

POSTED AMOUNT 29,872,568.14 36,585,974.41 12,230,336.49 3,029,111.61 68,230,891.60

#  OF RA WITHOUT RCR 0 0 0 0 0

# PO WITH RA ADJUSTMENTS 24 0 45 20 89.00

The PORA of DSD was also due to error of qty encoded by the purchasing and produce
department. Based
 
Below is the break down of DSD PORA
 
ISSUES MAKATI TRINOMA ALABANG NUVALI TOTAL PERCENTAGE
ERROR IN QUANTITY POSTING 12 0 4 2 18 20%
ERROR IN COST DURING PO CREATION 12 0 41 18 71 80%
TOTAL 24 0 45 20 89 100%
 

Error in quantity encoding could be eliminated if Receiving encoders are cautious in encoding the
quantity before posting 
On the other hand  error in cost could be eliminated if Purchasing review the Purchase order prior
to releasing  
 
IV. RETURN TO VENDOR (RTV) TRANSACTIONS
MAKATI TRINOMA ALABANG NUVALI TOTAL
# OF POSTED RTV TRANSACTIONS 3,034 2,724 2,112.00 1,254.00 9124
RTV UNDER WORK STATUS 0 0 0 0 0
RTV UNDER ALLOCATED STATUS 16 0 1 0 17
RTV WITH  REVERSAL (NEG RTV) 4 18 4 1 27
 
As of August 31, 2021 there still 17 RTV under allocated status this is part from the previous
reporting that need to be deleted in JDA MMS. 25 posted RTV were subjected to wrong entry of
RTV and to separate the VAT and NON VAT item in RTV Shipping Manifest.
The table below shows the main reason of Negative RTV for all store.
 
TOTAL %
 
SEPARATION OF VAT  
8 30%
AND NON VAT
14 52%
WRONG QUANTITY
4 15%
WRONG COST

DOUBLE CREATION
1 3%
OF RTV
27 100%
TOTAL

V. TRANSFER TRANSACTIONS
MAKATI TRINOMA ALABANG NUVALI TOTAL
# OF TRANSFER TRANSACTIONS 14,144 12,026 9,055 3,687 38,912
# OF TRANSFER UNDER WORK STATUS 1 0 0 0 1
#  OF TRANSFER UNDER ALLOCATED STATUS 4 0 0 0 4
#  OF PROBLEMATIC TRANSFER 4 0 5 0 9
 
Inventory of warehouse and selling area are separated in two  store code locations is MMS , thus
in order to transfer the inventory from one location to another  Stocks Transfer Slip are prepared.
For the month of August, no pending transaction under Work and Allocated status but there were
9 problematic transfer due to wrong quantity encoded and all 9 were corrected by transfer
reversal.

VI. ADJUSTMENT 61
MAKATI TRINOMA ALABANG NUVALI TOTAL
ADJ 61  FROM DST AND DVST 156 0 8 2 166
ADJ 61 FROM LEFT BY
CUSTOMERS 0 0 0 0 0
OTHER ADJUSTMENT 61 135 6 0 0 141
 

Adjustment 61 are general adjustments that includes transfer of items from Department Store to
Supermarket ,return to selling area for  customers left item, and adjustment at warehouse location
due to  incorrect system balance .

 
VII. STORE USE
ADJUSTMENTS
MAKATI TRINOMA ALABANG NUVALI TOTAL
# OF  SUA
TRANSACTIONS 0 4 0 0 4
POSTED  COST 0 0 0 0 0
 
Store Use adjustments are for those items used as  Store /Office consumptions such as supplies ,
Representations,  Promos shouldered by Landmark and others  
 
VIII. MAKE UP BREAK UP ADJUSTMENTS
MAKATI TRINOMA ALABANG NUVALI TOTAL
# OF POSTED MUBU ADJ 53 0 56 5 114
# OF  OPEN MUBU
TRANSACTIONS 0 0 0 0 0
 
MUBU  is an inventory adjustments  performed to transfer the system balance of regular sku to
promo/bundled sku.
 
 
IX. INVENTORY AGING AS OF SEPTMBER 06, 2021

60 - 89 DAYS 90 -
COUNT OF EXTENDED EXTENDED
DEPARTMENT QTY COUNT OF SKU QTY
SKU RETAIL COST
MAKATI 1,408 121,102.33 8,649,879.03 7,741,013.23 742 45,374.99
TRINOMA 1,771 214,866.32 16,029,088.97 14,648,211.55 996 123,168.63
ALABANG 1,763 132,889.34 9,307,980.03 8,404,626.20 988 75,027.55
NUVALI 1,675 111,725.45 6,932,416.00 6,254,138.69 1,069 39,510.00
580,583.4
TOTAL 6,617 40,919,364.02 37,047,989.66 3,795 283,081.17
4

An Inventory Aging is a list of the items on hand grouped by the length of time in inventory. Based
on data above 22,980 SKU were identified as slow moving with a total price of 155,427,821.84.

X. INVENTORY VALUE  AS  OF SEPTEMBER 04 , 2021 ; 7:30 AM 

 
MAKATI TRINOMA ALABANG NUVALI TOTAL
WAREHOUSE 2,573,690 2,511,718.06 2,687,042.42 671,527 8,443,977
SELLING AREA 1,103,262.03 2,043,237.28 982,054.02 501,365.51 4,629,919
TOTAL 3,676,952 4,554,955 3,669,096.44 1,172,893 13,073,896
 
Thank you 
 
--
Joseph V Albania