Benchmark & Case Studies
Productivity Increase in Specialised Retail
The Challenge
Problems
- Increasing number of units sold, with a decreasing profit margin, creates pressure to improve productivity
- Labour cost rising faster than sales do – high % of MOD/Sales
Root Causes
- Fixed team sizes, not adapted to workload fluctuation
- High percentage of time dedicated to processes that are not customer-driven
- Unclear distribution of tasks and process monitoring, leading to low resource occupation
- Differing level of customer service between stores, no company-wide standard
Solutions
- Daily team sizing, based on customer flow, incoming stock and online order volume
- Task and process standardisation, with frequent monitoring
- Alignment between 200 stores on how to operate, involving operators and team leaders
Results
This project generated benefits of £28m/year
%MOD/Sales
MOD/Sales reduced by 10%.
Productivity
Productivity raised by 25%.
Online Service Level
Online Service Level increased by 11%.
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