Benchmark & Case Studies

Productivity Increase in Specialised Retail

The Challenge





Initial State

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

After State

  • 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

MOD/Sales reduced by 10%.

Productivity

Productivity

Productivity raised by 25%.

Online Service Level

Online Service Level

Online Service Level increased by 11%.



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