Store deliveries run one to three times a week, depending on the demand for warehoused products (extra stock is not kept on-site at its stores). The hardware chain claims a 97-percent efficiency rate in getting replacement products to stores to keep the shelves filled.  

Much of Ace's loss prevention, he notes, has to do with being diligent and following up on meeting those re-stocking needs:  “We hold our feet to the fire when it comes to shortages. We have some very strict internal controls and checks and balances on incoming and outgoing freight as well.”

Ace keeps some 300 professional commercial drivers on its payroll, and when an extra hand is required it enlists the aid of outside small or independent “carriers” that the company has worked with previously.

Theft, which he says is essentially a non-issue in the U.S., is more of a concern when Ace exports product to its international retailers. In those cases, its standard policy is to ensure all its shipments are sealed before they leave the country.

“Because you're placing things into a container that's going onto a boat, there tends to be a little more 'shrinkage' going to foreign countries,” says Montanez. “We ship to Latin America and the Mideast and other parts of the world that perhaps aren't as high in security as the U.S.”