Blockbuster Video does a lot when it comes to maintaining inventory in their stores. They must make sure that the stores inventory matches what the computers say the stores inventory should be at. The difference is the calculated “shrink,” or stolen product. Blockbuster employees a division called lost prevention whose only duty is to keep track of inventories. They run quarterly inventories in stores whose shrinks are low and monthly inventories in those stores that have high shrink.
Blockbuster stores do inventory on their store supplies which are usually ordered in the beginning of each month. Supplies are ordered by using a system called the EOS system. The EOS system allows the store to use the computer system to order supply items, non-inventory office supplies, cleaning products and new retail movies from the Distribution Center (DC). The stores all receive a binder filled with an updated list of products that can be ordered. The General Manager or the Assistant General Manager will take an inventory to see which supplies need to be ordered and place the order the first Monday of the month, shipment arrives two weeks later. There is not calculation of when to order, it relies on the mangers experience and ability to estimate buying patterns using previous year’s sales.
Blockbuster runs inventories in every store, they have an inventory team that goes around to every store during their scheduled inventories. They scan every product in the store including rentals, sell-thru, candy and soda, and other items such as toys. A report prints up showing what is missing from the inventory. The inventory team will then go around and see if they can find the missing product, then scan any product in that was missed. This concludes the inventory, based on how much product is missing will determine if the store is high shrink or low and how often inventory will have to occur at that specific store. This helps lost prevention and management to see if there is any theft going on in the store possibly internal.
Blockbuster has a system called the Point of Sales System (POS) that keeps count of the entire inventory. When customers are looking for specific products, either for sale or rent, an employee can just look it up in the system. When it comes to the new release rentals corporate sends the store copies of the movies. They base the amount of copies sent based on the demographic of the area, if they think the movie will rent a lot then they will send more copies of it. No store places orders for sell-thru, that too is done through corporate. The system notifies corporate when the store is running low or has sold out of a specific title and ship more out to them for the following week. Corporate also recalls movies that don’t sell or rent, they will send a transfer through the computer system for the store to pull these movies and send them back to distribution.
Candy orders are filled the same way as movie inventory. The computer keeps track of how much of what candy is being sold and if more needs to be sent. The soda orders are filled differently. A Coca-Cola representative will go to each store and place an order that the manager gives them. The representative comes every 3rd week of the month so when placing the order the manager must make sure that the amount ordered will last for the next 3 weeks. Some stores also sell ice cream and the ice cream orders are ordered the same way that the soda is ordered. The ice cream vender will come once a month and place the order to be shipped the following week.
Blockbuster has a very organized inventory procedure. It is the General Managers job to make sure that all inventory procedures are being followed. They have to make sure that the product is being received into the store properly in order to maintain the inventory in the system. They most always check the receiving reports to make sure they match what the computer says. When it comes to new movie retail every store must check their system to make sure that the computer numbers match with the amount out on the shelf. Every store does these cycle counts every Wednesday, by doing this it helps to see if there are any errors in the receiving or the product is being stolen.
Blockbuster stores do inventory on their store supplies which are usually ordered in the beginning of each month. Supplies are ordered by using a system called the EOS system. The EOS system allows the store to use the computer system to order supply items, non-inventory office supplies, cleaning products and new retail movies from the Distribution Center (DC). The stores all receive a binder filled with an updated list of products that can be ordered. The General Manager or the Assistant General Manager will take an inventory to see which supplies need to be ordered and place the order the first Monday of the month, shipment arrives two weeks later. There is not calculation of when to order, it relies on the mangers experience and ability to estimate buying patterns using previous year’s sales.
Blockbuster runs inventories in every store, they have an inventory team that goes around to every store during their scheduled inventories. They scan every product in the store including rentals, sell-thru, candy and soda, and other items such as toys. A report prints up showing what is missing from the inventory. The inventory team will then go around and see if they can find the missing product, then scan any product in that was missed. This concludes the inventory, based on how much product is missing will determine if the store is high shrink or low and how often inventory will have to occur at that specific store. This helps lost prevention and management to see if there is any theft going on in the store possibly internal.
Blockbuster has a system called the Point of Sales System (POS) that keeps count of the entire inventory. When customers are looking for specific products, either for sale or rent, an employee can just look it up in the system. When it comes to the new release rentals corporate sends the store copies of the movies. They base the amount of copies sent based on the demographic of the area, if they think the movie will rent a lot then they will send more copies of it. No store places orders for sell-thru, that too is done through corporate. The system notifies corporate when the store is running low or has sold out of a specific title and ship more out to them for the following week. Corporate also recalls movies that don’t sell or rent, they will send a transfer through the computer system for the store to pull these movies and send them back to distribution.
Candy orders are filled the same way as movie inventory. The computer keeps track of how much of what candy is being sold and if more needs to be sent. The soda orders are filled differently. A Coca-Cola representative will go to each store and place an order that the manager gives them. The representative comes every 3rd week of the month so when placing the order the manager must make sure that the amount ordered will last for the next 3 weeks. Some stores also sell ice cream and the ice cream orders are ordered the same way that the soda is ordered. The ice cream vender will come once a month and place the order to be shipped the following week.
Blockbuster has a very organized inventory procedure. It is the General Managers job to make sure that all inventory procedures are being followed. They have to make sure that the product is being received into the store properly in order to maintain the inventory in the system. They most always check the receiving reports to make sure they match what the computer says. When it comes to new movie retail every store must check their system to make sure that the computer numbers match with the amount out on the shelf. Every store does these cycle counts every Wednesday, by doing this it helps to see if there are any errors in the receiving or the product is being stolen.
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