Attch 4 -- Retail Inventory Statement of Work.pdf

Retail Inventory Statement of Work

A.1 BACKGROUND

The Office of Business Enterprise (BE) operates within the Library of Congress Office of the Chief Operating Officer. BEs primarily provides goods and services through its three business entities:

Duplication Services, Retail Services and Cataloging Services.

The Office of Business Enterprises is a cost recovery division within the Library. BEs businesses and programs enable the Library to serve all Americans through its products, without use of appropriated monies. As with any retailer, inventory management and proper inventory controls are a key performance indicator for BEs successful fiduciary management.

Retail Services currently operates with approximately 2,000 SKUS that are offered through both channels. Product includes books, apparel, stationery, jewelry and gift items. Successful inventory management enables us to better service our customers with sufficient in-stock levels of the products they want to purchase.

B.1 SCOPE

BE seeks a contractor to provide accurate, reliable and timely inventory counts to support its inventory management through annual and seasonal physical inventory counting (i.e. midyear) of its on-hand retail merchandise. The Retail Services entity operates an online store and one brick-and-mortar store.

It is the desire of BE that the contractor incorporate improvements in inventory management and control applications, using their expertise of inventory management.

The contractor shall assist BE by:

• Performing annual physical inventory counts using existing bar-codes, tickets, and ISBNs that can be tracked and verified and compared against data from our Enterprise Resource Management system (ERP)

• Using technology (i.e. scanners) to provide timely reporting needed to ensure accurate inventories and data collection, and identify shrinkage (based on dollar or unit variances)

• Ensure the highest level of inventory count accuracy; methodology to minimize counting errors and validate that all physical inventory in designated counting areas is accounted for

• Ensure inventory validation: including price verification, unique item number, ISBN, or UPC codes are scanned or counted.

C.1 OBJECTIVE

The objective of this requirement is to conduct an automated physical inventory count of the Retail areas. Retail inventory is stored in three primary locations in Washington, D.C., on Capitol Hill:

- Jefferson Building Retail Store (and small auxiliary stockroom)

- Jefferson Building cellar level stockroom

- Adams Building ground level stockroom

Contractor shall provide accurate physical inventory counts of products stored in the listed areas, to support the annual operations, enable centralized management of tasks such as tracking inventory levels and stock locations and create management inventory reports that provide information needed to efficiently control the movement of products and materials in and out of these areas. BE closes its physical store during all counting activities and typically doesn’t reopen until all counting is completed.

Our goal is for the contractor to provide accurate and efficient inventory counts, and recounts, so that

BE is able to evaluate actual physical inventory against quantities documented in its inventory management system.

BE shall provide the contractor with an .xml or .csv file that includes pre-identified data fields, such as item number, ISBN, cost, and retail. The contractor shall track inventory counts based on the locations listed above. The contractor shall roll-up counts from all locations into a single report which will be used to identify variances. The contractor shall use the predefined data supplied by BE to populate the contractor’s own inventory database/equipment before inventory begins. The goal is to enable reporting to BE utilizing actual physical counts, shortly after counting ceases.

The contractor shall provide a report with counts and valuations (at cost and retail) using their physical inventory results. This report shall be supplied to BE and used by the contractor to identify variances from data in the initial counts that BE provides. The contractor shall provide BE with the variance report and based on pre-determined variance thresholds, BE will identify areas and/or products where recounts are needed to reconcile the variances. The contractor shall recount products identified by BE as above the pre-determined variance threshold. After recounts, the contractor shall provide an updated inventory report to calculate the total inventory valuation of all counted skus.

BE will work with the contractor to establish a location scheme that will identify aisle, section and shelf position of stocked items, and identify bulk areas and first-in, first-out designations. BE shall supply at least two staff to work with the contractor to navigate the counting area, conduct lookups for unticketed items, and general guidance for routing on-the-spot product identifications. The contractor shall be able to provide the Library designee (typically the store manager) with progress updates on completion and verification of areas counted.

C.2 REQUIREMENTS

C.2.1. The contractor must contact the Library at least 2 months in advance to schedule each inventory.

The Library will provide an inventory listing to the contractor at least 2 days prior to the start of inventory activities.

C.2.1.1 The contractor will provide the final physical inventory data report(s) in CSV or Excel formats.

Columns in the data sheets shall include:

LC SKU#

ISBN# (when provided) PART# (when provided) VENDOR BAR CODE (when provided)

PRODUCT DESCRIPTION

BEGINNING QUANTITY (as reported by LC) UNIT COST and EXTENDED COST UNIT RETAIL and EXTENDED RETAIL

EXTENDED COST

EXTENDED RETAIL

ACTUAL INVENTORY QUANTITY

VARIANCE (UNIT & DOLLAR VALUE)

The contractor shall use barcode/electronic data collection equipment and software to conduct each inventory and provide timely completion reports. Contractor cannot use Library equipment to complete inventory. The contractor shall do the following for the retail physical inventory:

C.2.1.2 Conduct a physical inventory of existing Retail stock on or before September 20th of each year.

Special ad hoc inventory counts, such as mid-year inventory counts, will be scheduled with a minimum of a two-month notice.

C.2.1.3. Provide sufficient labor to complete Physical Inventory counts and any needed recounts in the three (3) primary locations listed in C.4 and timeframes provided herewith. Physical counts (initial and recounts) in the Retail store shall be completed within 1 business day; physical counts (initial and recounts) in the combined stockrooms shall be completed in 1 business day. BE will accommodate escorted access to the store and stockrooms and our buildings for up to 10 hours per day (7:30 a.m. to 5:30 p.m.)

a. Total Retail Inventory consists of approximately 2,000 to 2,250 SKUs.

b. Not all products shall be physical ticketed; all products shall have a unique identifier (i.e. ISBN, UPC or ticket);

C.2.1.4. Notify Library of any missing Bar Code labels (or identifiers), which the Library staff shall provide as needed information for remediation

C.2.1.5 Utilize Library provided inventory report data as basis to conduct physical inventory counts and variance counts

C.2.1.6. Utilize and supply their own equipment and technology to complete counts, scans and to generate reports; NOTE: Wi-fi connectivity may vary by location.

C.2.1.7. Perform all data manipulation including: scanning SKUs, collocating counts from various equipment into a single report; creating report calculations (i.e. variance reports); organizing and emailing reports

C.2.1.8. Provide initial inventory count report, inventory variation report, final inventory report (in Microsoft excel format)

C.2.1.9. Provide final inventory report within 48 hours from inventory start for acceptance by the Library. Reports provided to the Library shall:

a. include data listed in C.2.1.1

b. provide a separate report of missing or unidentified items (items counted by contractor, but not on Library supplied report)

C.2.1.10. Recount all items that fall outside of pre-established variance within 2 hours of completing inventory (quantitative variances of 8% or higher and/or cost valuations above $400+).

C.2.1.11 Prior to starting the inventory, contractor shall conduct a review of the BE facilities and view actual inventory. This can occur up to one day before the physical inventory and must be scheduled.

Contractor shall consult with the Library on high level priorities and test equipment in the identified store and stockrooms.

C.2.1.12 Contractor shall establish a completion scheme that will identify aisle, section and shelf position as an area is completed. The scheme shall also identify bulk areas, disposal areas, and inventory that recently arrived. The contractor shall indicate inventory location is complete by “tagging” inventory location.

C.2.1.13. Contractor’s laborer shall communicate with BE staff to resolve any questions, un-readable barcodes, or unidentifiable labels before departing the property.

C.3 DELIVERABLES

C.3.1. Inventory Reports The contractor shall deliver a finalized inventory report to BE within 48 hours after the inventory counts begin. The contractor shall ensure the final report is delivered electronically via email to the Library COR, includes all fields as designated in C2.1.1., is formatted with either CSV or Excel, and conforms to data layout in report initially provided by the Library. Final Inventory Reports will identify initial item values and quantities (as provided by the Library’s most recent report), the updated counts accepted by the Library (inclusive of reconciled variances), and a column to show any actual quantity and dollar variances by SKU. All data should be totaled.

Interim reports the contractor shall deliver include an initial count report (contractor’s first count) and variance report (delta between the Library’s counts and the contractor’s first count).

C.3.2. Revised Final Inventory Report (if necessary) contractor will recount all items that fall outside of pre-established variance. A finalized and updated within 48 hours of starting inventory.