Retail

Superior Replenishment, Superior Sales, Superior Profits

In the retail industry everything starts and ends at the point of sale. Improving how you get product from your suppliers into the hands of your customers does not require new IT systems, a cavernous new warehouse or expensive robotic handling equipment. Although such solutions have their place, at TBM we stress creativity before capital.

Using Lean and Six Sigma techniques (which TBM combines as Lean Sigma), we help you understand the impact of demand volatility on service-level decisions and determine how product families should be stocked and sold. Without losing any sales due to stock outs, a pull system that relies on customer orders to trigger replenishment can minimize inventory, reduce risk of shrinkage and obsolescence, and conserve cash.

At TBM Consulting Group we have worked with retail clients to analyze and transform their order management, replenishment and stocking processes. These projects often involve cross-department teams representing the entire value stream for product families spanning multiple distribution centers and retail stores. These teams have included people from forecasting and planning, procurement, production and inventory control, sales and marketing, customer service, finance, and information technology. With the full support of executive management, such participation and engagement is essential for making permanent process improvements and sustainable results.

Some of the characteristics that distinguish the operations of our retail clients include:

  • Superior product availability
  • Fast lead times, from the supplier to the shelf, or from the DC to the customer’s door
  • Optimal use of store staff to serve customers and minimize time spent de-boxing, tagging and stocking shelves
  • Disciplined distribution processes that maintain strict schedule adherence
  • Effective sales and operations planning
  • Strong supplier partnerships

Argos, a U.K.-based retailer with both retail outlets and a strong online business, found that having the latest automated material handling equipment in their giant new distribution center wasn’t enough to achieve the desired service levels. What they needed, which TBM helped Argos implement, was a continuous improvement culture:

“During the training process, I began having discussions with TBM who, following an initial assessment of the site, have now been working with us for six months, implementing lean tools and techniques, running kaizen events, which have a direct impact on process improvement and productivity gain while integrating a mechanism to sustain improvement.…  Whilst cost reduction is the main driver, we are managing continuous improvement in a way that has other ‘softer’ benefits, as accidents have substantially reduced, site housekeeping is maintained to a high standard and communication has improved."

—David Lloyd, operations manager, Argos, as quoted in Manufacturing Today magazine.

TBM can help you set business priorities and fully leverage Lean and Six Sigma techniques in your retail business. We start by helping you build your continuous improvement team’s knowledge and skills, including thorough training, exposure to best practice operations, and personal coaching that will ultimately enable your organization to become self-sufficient. Using a combination of project teams and the kaizen breakthrough methodology, we help clients move their operations forward simultaneously in multiple areas.

It sounds simple. But as any business leader knows who has dabbled in these techniques, who has tried to implement a lean value chain and achieved lackluster results, it’s all too easy to become distracted by daily demands and fall back into old habits. The hardest part is always cultural, which provides the foundation for sustainable progress. If it were easy, everyone would do it and there would be no competitive advantage.

TBM business consultants have worked with retail companies around the world to generate breakthrough business improvements. To learn more about our experience and how we can help your company move forward, contact Bill Swisher at 800-438-5535.