Supply Chain Flashcards
1BW
One Best Way
Four Core Responsibilities
- Create the Annual Operating Plan (AOP)
- Monthly Close
- Bi-Monthly Forecast
- Analysis to drive productivity/cost savings and to ensure appropriate decisions are being made.
Annual Operating Plan
- Ensure the business is aligned to key assumptions.
- Building level plans drive quarterly incentive payouts
- Identify key risks and opportunities
Monthly Close
- Ensure the financials are correct.
- Explain drivers of variance to plan and forecast.
Bi-Monthly Forecast
- Ensure business alignment.
- Identify risks and opportunities.
Quarterly Incentive Program
Potential bonus based on productivity, accuracy/damages, and quality.
Warehouse Claims
Charges to DC of 0.17% of sales to compensate stores for routine losses that happen during handling for stores that do not file a claim.
Primary DC revenue sources
Warehouse Service Charge, Buying Allowances, Trucking Income, Shrink Accounts (Stock Shortages, Warehouse Inventory Variances)
Warehouse Service Charge
1.4% of sales + inbound freight + outbound freight. Upcharge for the service we provide the stores.
Trucking Income
0.61% of sales for RDCs and 0.3% for FDCs
DSD
Direct store delivery. Supplier directly delivers products to store.
Prepaid transportation
Supplier is responsible for shipping product to DCs and cost is included in product cost. About 66% of total transportation.
Collect transportation
Walmart is responsible for picking product up at supplier and shipping to DC. About 34% of total transportation.
Staple stock
Inventory that is stored within the DC
Distribution assembly
Inventory that is typically shipped and received the same day
Break pack
The most labor-intensive freight type. A case needs to be opened to remove the inner packs inside.
Non-conveyable inventory
Large, bulky items
Base Wage Rate
(Maintenance wages + associate wages + temp/contractor wages + 2/3 OT wages) / Total Hours
AP0341R
Payroll daily accrual
AP0340R
Daily accrual reversal
AP0345R
True payout earned by associates
WHSE GP
Warehouse gross profit. Calculation of COGS expenses. Measures how well we are managing our inventory.
What accounts make up warehouse GP?
- cost of good sold (debit or credit)
- inventory variances (usually debit)
- buying allowances (usually credit)
- transportation expense (usually debit)
- other COGS and cost of services (usually debit)
Buying allowances
Generated by supplier/merchant agreements in which we receive a percentage of the total inventory cost received in the building. Usually a credit balance. Warehouse allowances are excluded from SG&A networks since merchants capture this on their P&L.
5 criteria to retrieve data from Reporting Cube in Essbase
- Year
- Scenario (actual, plan, etc)
- Period
- Entity
- Accounts
MIP
Management incentive plan
COGS networks
GMC, Imports
SG&A Networks
RDCs, Fashion, Specialty
Cross Docking
Unloading freight from an inbound load and loading it directly into an outbound shipment with little to no storage in between.
Ship Void
An order is canceled by the system when it has not been billed to the store and the label and freight have not been physically located after 6 days.
OIR
OSHA incident rate: a measure of OSHA recordables per 100 FT employees.
LTCR
Lost Time Case Rate: a measure of lost time injuries per 100 FT employees.
Cost Bust
A product is billed to a store with an incorrect cost or weight.
