Fresh items produced within the store are critical differentiators in defining a retail brand. They also represent a significant investment in labor costs. Once you understand the real labor costs, you can better gauge each item’s net profit performance and make fact-based decisions about item assortments. Focus your production resources on the items that generate higher profits and less shrink.
Map individual UPCs to the labor standards used to produce that item
An extension of Enterprise Labor Model (ELM), our UPC Analyzer uses the same store-specific engineered labor standards in ELM which incorporate all unique store profile elements and store characteristics to create the item-specific labor time per item by store. The result is a precise time per item that can be used to calculate an effective labor cost per item to assess item or program profitability.
Uniquely positioned insight
This level of insight is only possible by leveraging the store-specific standards developed to quantify labor for budgeting, staff planning and scheduling. Other methods such as using department averages to project a labor component cost will not reveal the same opportunities.
Accurate item labor cost visibility enables you to:
- Define mapping of UPCs to volume groups and units of measure for the application of appropriate standards
- Analyze the labor content for any UPC using UPC Analyzer
- Analyze item and program profitability including labor, supply and known shrink costs
- Improve gross profit
- Reduce shrink through item rationalization and program performance reviews
- Improve capacity for in-store production once store teams are not creating items that do not sell