Pack size can have a significant impact on Inventory, product flow, order smoothness, transportation cost, and product cost. The rules for pack sizes help ensure that the product is able to flow from the truck directly to the shelf once it arrives at the
Supply Chain KPIs – Pack Size
Pack size can have a significant impact on Inventory, product flow, order smoothness, transportation cost, and product cost. The rules for pack sizes help ensure that the product is able to flow from the truck directly to the shelf once it arrives at the store.
Below are explanations of the various pack types:
Breakpack items are ordered from warehouses as whole Vendor Packs. Within each Vendor Pack, there are additional packages that are conveyable to store level. As an example, if an item is shipped to a warehouse with 24 units in the outer box (Vendor Pack), and there are 4 inner packs (Warehouse Packs) inside, the configuration of this shipping unit is referred to as a 24:6 configuration — there are 24 selling units in the Vendor Pack and 6 selling units in each of the 4 inner packs (Warehouse Packs).
"Pack and a Half" Rule
The "Pack and a Half" rule can help make decisions on optimal pack size. The general idea is that Walmart's shelves should be able to hold at least one and a half packs of merchandise. For example, if Walmart's shelf can hold 6 units, it is ideal to ship in packs of 4 or less (4 x 1.5 = 6). This helps to ensure that the product is able to flow from the truck directly to the shelf once it arrives at the store.
"Two Pack" Rule
If you sell a product that is packaged in shelf-ready packaging, the product should be compliant with the "Two Pack rule". The idea with this rule is that two entire shelf-ready packs should be able to fit on the shelf at once. That way, when the first pack sells through, the next pack can be pulled forward for customers to shop until the new shelf-ready pack arrives and can be placed directly on the shelf.
Determining Pack Size Compliance
To determine if your product is “pack and a half” or “two pack” compliant, let's create a simple Decision Support report.
The path to this report template is:
Once your report pulls back sort for the stores that have the smallest Max Shelf. Remember that varying different store formats and sizes might have different sized shelves for your products.
Do the following calculation, depending on which rule you applies to your product:
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