This is What DNI Mean At Costco!
Have you ever wondered what the DNI stamps on products at Costco mean? Well, Costco usually undergoes inventory exercises twice a year.
During these exercises, the remaining products are counted and recorded to know what the store needs to restock and the required quantity.
Customers often see DNI signs during the periods when these inventories occur. This article explains in detail what DNI in Costco stores means.
“DNI” is an abbreviation for “Do Not Inventory.” The mark identifies items that should not be included in inventories while ongoing. The mark also identifies defective or damaged items, unsaleable products, or products that Costco does not entirely own.
DNI At Costco
The DNI stamp is placed on items not meant for counting during the store inventory.
The tradition of using DNI marks is not solely peculiar to Costco. Other big stores like Walmart also use the idea for their retail outlets.
The use of DNI marks traces back to the invention of the inventory system for retail outlets.
Formerly, retail outlets used the “Replenishment system” to track and record items whenever the products were due for restocking.
The Replenishment system was ineffective as it did not make room for errors, mistakes, or losses.
Hence the store computer might record that the store has 40 remaining items of a certain product.
However, factoring in theft and other errors, 20 of those items remain.
Since the computer reads that there are enough of these items, it will not initiate restocking, causing unnecessary scarcity and frequent customer complaints.
A huge flaw with the Replenishment system was that it made theft easier since products could go missing without the system noticing it.
This flaw was the reason behind Costco’s bi-annual inventory.
Costco hires an audit firm that comes in and physically takes stock of all remaining products in the store and evaluates based on the previous store order, sales and losses.
The inventory ensures that what is on the shelf matches the books. The store computer recalibrates to match this new inventory.
DNI marks are attached to certain products not meant for counting in the inventory during the ongoing process.
A few reasons why these products aren’t listed include;
- Products that might be damaged or defective are not to be counted during inventory as they are unsaleable to customers.
- Items not up for sale by the store are marked DNI.
- Products not wholly owned by the store are marked DNI. Items such as Jewelry are examples of such.
- Usually, they can’t be included in the inventory because separate accounting processes manage the products.
- The items are owned by the manufacturers but are sold by consignment to the customer through the store. Hence, the store was never the product owner in the first place.
DNI signs are removed after the inventory is over. DNI signs do not mean products are not for sale or should not be touched or handled.
They aren’t warning signs for consumers and are only out in cases when an inventory is taking place in a store.
DNI signs are also not solely exclusive to Costco. Other stores can put up the signs when they also go through an inventory process.
You can contact the company’s customer support service if you have questions or complaints concerning DNI signs in any Costco store.
What Items At Costco Have DNI?
Costco can put the DNI sign on any item. However, the items are usually either damaged or defective, not for sale, or not owned by Costco.
In such cases, they are not to be included in the inventory. Some items are intentionally not included in the inventory because they are “pay by scan” items.
Hence, the DNI signs are often seen attached to them. These items include;
- Greeting Cards
- Magazines
- Garden Seeds
Items such as Jewelry or Tech equipment often have DNI signs hanging on them.
The reason is usually that the manufacturers are the owners of the items and sell them by consignment through the store. Therefore, items like these are not included in the store’s inventory.
Below is a table of examples of items that can have the DNI sign attached to them.
| Items | Reasons For DNI Sign |
|---|---|
| La Crosse Projection Alarm Clock | It’s sold in consignment to the customer through the store. |
| Hublot Watches | They are sold in consignment as well through the store. |
| Television Sets | They may be defective. |
Why Does Costco Mark DNI On Some Items?
The reason is to distinguish items not included during inventory exercises by auditors.
The DNI signs also notify auditors of items that are damaged or defective.
These items can then be removed and replaced. Items that are not for sale are also marked DNI.
Costco cannot mark DNI on all products even during an inventory process because the sign is only peculiar to specific items that do not need to be included in the books.
An example is items sold by consignment to the customers through the store.
Including these items during an inventory exercise can cause issues. Like balancing the store’s account since the items are not owned by the store but sold through it.
Items marked with the DNI sign can still be sold to customers, except damaged, defective or unsaleable items.
Other big stores where you can find DNI signs on items aside from Costco include Walmart and Target.
Conclusion
DNI signs are meant to notify auditors during an inventory exercise. A few items that mostly have the DNI sign attached include Jewelry such as Hublot Watches and Cartier bracelets.
Plus, Tech equipment such as La Crosse Alarm clocks and television sets. The items can still be purchased by customers, except if they are damaged or defective.
