As far as DC trucks go, the company has decided that if items are not correct on clubs DC trucks, then the company will assume that the mistake was made by the DC. Ultimately if the DC checks in the product from the vendors correctly at the DC, no matter if a mistake is made by the DC when they send the product to the clubs, it is still in the company’s inventory ultimately.
Example, DC ships your club the wrong paper towels, even if you find the mistake and have it corrected by the DC, the “corporation” has not lost a pallet of paper towels, the towels either went to another club by accident, or they are still at the DC and will be over the next time the DC does a audit. Now if the DC doesn’t correctly receive the 22 pallets of paper towels correctly when P&G ships them to the DC, then the “corporation” is going to be short a pallet of paper towels. So home office figures on that senecio, it doesn’t matter if the DC takes the hit and has to CO out the pallet of towels or if the club ultimately has to CO out the paper towels the next time there is a audit, the “corporation” is still out a pallet of towels. You have to find A LOT OF MISTAKES at club level to justify having the old Audit Team of 3 FT associates to make up for the added shrink that comes with the Audit Team elimination.
Example:
3 FT Audit Associates probably cost the company $100,000 a year per club when you factor in their salary and benefits package all together. That allows each club to have roughly $2000 a week in mistakes from the DC (52 weeks x $2000 = $104,000 a year per club). And again, of those $2000 a week DC mistakes, the “corporation” can safely say that over half of the mistakes are kept within the DC/Club structure, meaning that they are probably either still at the DC or have been sent as extra to another club, either way, the mistake did not cost the “corporation” any lost merchandise.
DC forgets to send you a pallet of foam cups, if you don’t catch it on the DC truck as short, the club is out around $250. So you would need to have 8 pallets of foam cups a week wrong EVERY WEEK to just break even with the savings each club received by no longer having 3 Audit Associates.