Improvement in ordering process within Fresh food divisions within retail stores to reduce shrinkage and working capital: Case study on Retail Grocery Chains
The study of the project is based on the usage of basic statistics that can help reduce the inefficiencies in the retail inventory and ordering process of fresh foods within grocery chains. Low shelf life and fluctuating demand was leading the stores to do clearance sale with zero or negative margin or write-off the inventory as shrinkage, annually leading to thousands of Euros of value loss to this European hypermarket stores. There were no defined tolerance limits to manage stock and shrinkage within these divisions across various stores due to thousands of SKU’s and needed an approach that can help monitor and control this waste. This project was a classic case of establishing department wide control charts and RAINBOW SPC charts (A simple visible, reliable and responsive process) to help monitor day to day progress. The project achieved significant control of the process through application of Lean tools, control charts/ RAINBOW SPC and created a process of internal benchmarking to continuously improve the ordering process across store outlets. The reduced waste in shrinkage and stock levels has enabled the retailer generate higher margins and concentrate more on availability and customer interaction. This project learnings and approach can be applied to any retail within India or elsewhere in the globe.
Achieving improved productivity in shared services set-up using Lean Six-Sigma approach: Case Study of a MNC Share Service BPO center in India
“Improved productivity” is a continuous buzz word among many shared service center teams that support the global operations located across India. Investing in latest and greatest technology and systems to boost the productivity needs to follow Design for Lean Six-Sigma process. There are some key steps before investing in a technological or capital solutions; directly opting for one is like putting a cart before the horse. An international company (ABC Co) engaged us as Lean six sigma experts to help project team make productivity decision framework. This case study will take you through the DMAIC process we followed to execute the project to establish current baseline with some applications of DFSS tools and will be beneficial to the audience when they face similar situations. ABC Co (company name changed), a shared services company in India is a BPO center with over 2000 employees supporting the global operations of a large MNC into retail business in Europe. This case is dealing with a 35 member team that processes and records the invoices of suppliers (Accounts Payable costs) for one of the company’s European country operations. The European management team was requested for investing significant capital in procuring an optical scanning solution (OSS) to scan various supplier invoices which will decrease manual work and enhance productivity. As a result of the project measurement and validation exercise the project team has discovered significant process gaps and productivity measurement gaps. This approach led to improvement in productivity without any investment and has helped to create a proper baseline for ROI calculations before considering investing in a new OSS technology.