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  • Breakage 2

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    NyanaCena
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    The document defines breakage in retail as money set aside to cover the cost of goods that break and cannot be sold. It then lists common causes of breakage such as expired, dented, or broken packaged goods for groceries, appliances, and fresh items. The document provides ways to reduce breakage such as FIFO inventory management, good handling practices, markdowns, return policies, and quality control checks. Examples are given for breakage issues and reduction strategies.

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    The document defines breakage in retail as money set aside to cover the cost of goods that break and cannot be sold. It then lists common causes of breakage such as expired, dented, or broken packaged goods for groceries, appliances, and fresh items. The document provides ways to reduce breakage such as FIFO inventory management, good handling practices, markdowns, return policies, and quality control checks. Examples are given for breakage issues and reduction strategies.

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    8 views12 pages

    Breakage 2

    Uploaded by

    NyanaCena
    The document defines breakage in retail as money set aside to cover the cost of goods that break and cannot be sold. It then lists common causes of breakage such as expired, dented, or broken packaged goods for groceries, appliances, and fresh items. The document provides ways to reduce breakage such as FIFO inventory management, good handling practices, markdowns, return policies, and quality control checks. Examples are given for breakage issues and reduction strategies.

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    © All Rights Reserved
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    of 12

    1 25 December 2018 Division

    BREAKAGE
    DEFINITION
    • In retail accounting, an amount of money set aside to
    cover the cost of goods that breakage. Because these
    goods cannot be sold, the company loses the revenue
    they would produce.

    3 25 December 2018
    4 25 December 2018 Division
    CAUSES OF BREAKAGE
    • GROCERIES
     EXPIRED ITEMS
     DENTED ITEMS
     EMPTY PACKAGING
     BROKEN PACKAGING

    • APPLIANCE (NOON FOOD)


    • EMPTY PACKAGING
    • DENTED ITEMS
    • MANUFACTURE DEFECT
    • MISSING PART
    • FRESH
    • EXPIRED ITEMS
    • BROKEN PACKAGING
    • QUALITY ISSUES
    5 25 December 2018
    EXAMPLE FOR DENTED,EXPIRED,QUALITY ISSUES ITEM

    6 25 December 2018
    7 25 December 2018
    8 25 December 2018
    WAYS TO REDUCE BREAKAGE
    • GROCERIES
     FIFO(FIRST IN FIRST OUT)
     GOOD HANDLING ON FRAGILE ITEM
     MUST CONTROL ORDERING & UP TO DATE WITH RESPECTIVE BUYERS
     MARKDOWN (50% & 70%)
     GOOD STORAGE MANAGEMENT

    • APPLIANCE (NOON FOOD)


    • DO RETURN
    • ASK MARKDOWN FROM RESPECTIVE BUYERS
    • GOOD STORAGE MANAGEMENT
    • SENT FOR SERVICE

    • FRESH
    • REDUCE PRODUCTION
    • 100% CHECKING ON QUALITY ISSUES
    • CONTROL ORDERING
    • MIN DISPLAY
    • MARKDOWN (20% & 50%)

    9 25 December 2018
    EXAMPLE FOR REDUCING BREAKAGE

    10 25 December 2018 Division


    CONCLUSION

    11 25 December 2018
    12

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