Benchmark & Case Studies

Productivity Increase in Specialised Retail

Challenge


Before 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 rate reduced by 10%.

Productivity

Productivity

Productivity improved by 25%.

Online Service Level

Online Service Level

Online service level increased by 11%.

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