Core tenets of Lean retail execution
February 27, 2013
Retail, like most other industries, can benefit by integrating Lean processes and mindsets. If retailers are looking to maximize their budgets while minimizing waste and improving efficiency, then embracing a Kaizen work culture may be the best way to go.
If merchants do go this route, they must observe the three core tenets of Lean retail execution, as noted by Global Retail Insights:
1. Deliver on trend
Retail is an industry driven by trends and patterns. When an item becomes hot, it will be the most in-demand product available. Merchants need to ensure this product is always in stock during these key time periods, or else they are missing out on sales.
Waste elimination is key to ensuring retailers keep their inventory full of the hottest products. Business leaders should seek out any potential wasteful processes, whether it's in supply chain management or internal stocking procedures, and eliminate them to ensure high-selling goods are always available.
2. Know the value stream
Products start in warehouses and end in the hands of customers. However, there are a number of steps in between that can impact the timeliness of the delivery process. Merchants need to ensure they are moving products from the one beginning point to end point in an efficient manner.
Having a value stream and identifying future states can help retailers discover potential snags in the flow of information of goods. By using value stream mapping effectively, merchants can greatly bolster time to market.
3. Strive for improvement
Retail operations are complex and nuanced, and rarely is there a single reason why any retailer succeeds or fails. Whether merchants are in the red or in the black, there are always ways for them to improve efficiency and other internal processes.
One concept that's core to Kaizen is that of continuous improvement, which urges businesses to never grow complacent. This mindset is critical to the success of merchants, and by always seeking ways to improve operations, work culture and management, they are setting themselves up to run an efficient company.
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