Benchmarks & Client Cases

Daily Management in Food Retail

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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

Productivity in logistics operations increased by 8%

Shrinkage rate

Inventory Shrinkage

Inventory shrinkage rate reduced by 4%.

Average Stock

Average Stock

Stock level reduced by 5%.

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