I was thumbing through an old produce training manual when Russ T. Blade peeked out from behind the cover. “Rusty,” as regular readers know, is the miniature, imaginary produce manager who occasionally appears to talk shop.
Rusty: Looking for a study point in that thick binder, are you?
Me: Huh? Oh, I’m just pondering about something that occurred to me lately regarding how we used to manage the produce department’s initial ordering plan for a new store or remodel grand opening.
Rusty: How is ordering for a new store any different than what someone orders on a daily basis?
Me: The difference is in the precision. Imagine you and me working together on a grand reopening. We’ve gone through all the fixture layouts and how many linear feet are available in the department.
We’ve merchandised on paper exactly where everything is going, the volume needs, what the weekly ad items are, the projected volume and pricing, and what the grand opening special ad items are — all the way down to space allocations on secondary displays, dry item displays and, of course, the wet rack. (You know what it’s like; you have to actually work and experience this fresh produce life for years to even begin to know anything about it.)
Rusty: I get it. We’ve got our merchandising map all carefully laid out. Suppose the warehouse is limited or temporarily out of something?
Me: Knowing what we do, we assume we can get most everything in the order guide and that we are also familiar with all current seasonal items.
Rusty: So, we just order for the plan. Doesn’t sound that hard to me.
Me: You would think so, but I have seen total chaos at many new store openings in the past due to panic or uncertainty, which leads to overordering. Imagine: pallets of specialty items no one planned for, too much of some items and not enough of others. Especially when you receive everything all in one day, the pallets wind up staged all over the department and your crew is confused and disorganized.
Yeah, it can be a disaster in terms of poor preparation, misallocated labor, breaking the cold chain and more.
Rusty: Again, we just order what we need. Nothing extra.
Me: Ah, but that’s just it. We need to order to set up the displays in a planned sequence. Meaning we make and follow an action plan ahead of time so that our first order received, say, five days from grand opening has only table mats, supplies, crisping tubs, carts and plastic shopping bags. Order only what’s needed to prepare the fixtures.
Rusty: I get it. We’re on an as-needed ordering schedule, and we schedule labor to match.
Me: Exactly. So, the next day or so we only bring in the hardier items — apples, citrus, onions, potatoes, jar items, dried fruit, dry mix packs — and set up those tables with just enough product to fill the display to our desired width and height.
Rusty: I’m liking this. I prefer full front-end displays and little to no backstock.
Me: No backstock at all is the goal. Most new store openings get fouled up with wasted, neglected product and labor when overzealous orders block coolers, hallways and prep areas.
Instead, we time our orders so that the more perishable orders arrive no more than two days prior to grand opening. That gives us time to break down, crisp, prep and assess quantities, out-of-stocks, quality and culling. It also gives us a one-day cushion inbound order just prior to grand opening for any last-minute adjustments.
Rusty: Again, initially the goal is to have a gorgeous, fully stocked produce department and no backstock.
Me: Right. From then on, your orders should follow the same method. Be aggressive, anticipating maximum sales, but have the discipline to hold off ordering excess merchandise. Trust your gut and years of experience. Strive for one realistic-sized load every day throughout the first week of grand opening so every load can be properly handled and rotated, as well as so you and your crew can maneuver and work to maintain inventory, stock conditions and quality standards.
Rusty: I get it. Then after the first week, we can revert to whatever order and receiving schedule we’ll have on a regular basis beyond that.
Me: Keep that first goal in mind, so that whenever each subsequent delivery arrives, your displays are full, but your backroom and cooler spaces are as empty as possible. High inventory turns, my boy.
Armand Lobato’s more than 50 years of experience in the produce business span a range of foodservice and retail positions. He has written a weekly retail column for nearly two decades.
