A Food Marketing Institute Study Recognizes ADC’s P-Cubed Production Manager System as an Effective Shrink Control Tool

The Food Marketing Institute (FMI) recently released the “Food Retailing Financial and Business Review 2012-2013,” which includes a detailed overview and analysis of shrink in food retailing.
 
The study found that the average total store shrink (as a percentage of sales, excluding gasoline and pharmacy sales) was 2.9% among all respondents and 3.4 percent among companies operating 51 or more stores. The highest levels of shrink were measured in the fresh food departments — deli/prepared foods (9.7%), bakery (6.9%), meat (5.5%) and produce (4.4%).*

Study respondents provided a list of tools and processes they have found to be most effective in managing shrink. Improved tracking, analysis and reporting was the first and foremost way, with several retailers calling out improved perishable management in particular.

Responses included, “Fresh-item management systems that produce accurate costs for prepared items,” “data analysis down to the item level” and direct mentioning of our P-Cubed Production Manager Software System.

Specifically, our P-Cubed Shrink Manager module identifies shrink factors, assisting management with reducing perishable food wastage and helping to reduce shrink in fresh food categories. The P-Cubed Shrink Manager also reduces the amount of labor required to capture and report shrink by using hand-held wireless barcode scanners.

“Many of our clients are reporting significant reductions in shrink, without negatively impacting sales, by using our P-Cubed Shrink Manager,” said Steve Loveridge, CEO at ADC. “By tracking and understanding where perishable shrink is occurring, grocery chains have a great opportunity to improve the bottom line in their fresh food departments.”

The P-Cubed Shrink Manager is a module within P-Cubed, a system within ADC's InterStore Fresh Item Management (FIM) software suite. The other two systems within InterStore are the InterScale Scales Manager and the NutriGen Recipe Manager. InterStore provides grocers with an integrated software solution to help increase efficiencies in fresh food departments.

*“Food Retailing Financial and Business Review 2012-2013” published by the Food Marketing Institute - http://fmi.org/forms/store/ProductFormPublic/search?action=1&Product_productNumber=3113