Benchmarks & Client Cases
Daily Management in Food Retail
The Challenge
Problem
• Disorganised material storage in instore warehouse
• Excess material stock in instore warehouse
• High inventory shrinkage rate
• Low productivity in replenishment and warehouse activities
Root Causes
• Lack of visual management for material flow within instore warehouse
• Lack of standard work
• Weak culture of continuous improvement and lack of routines
The solution
• Daily Meetings for work planning, KPI analysis and implementation of improvement actions
• Workplace organisation based on visual management principles to improve productivity
• Task Standardisation and Training to eliminate variability in task completion between team members
• Team Development Programme to roll out implementation to all department stores
The Results
The project had a payback period of less than 3 months with annual Savings of £4.5 million.
Productivity
Productivity in logistics operations increased by 8%
Inventory Shrinkage
Inventory shrinkage rate reduced by 4%.
Average Stock
Stock level reduced by 5%.
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