The Challenge
![](https://kaizen.com/wp-content/uploads/2022/10/image-12.png)
Problems
- Increasing number of units sold, with a decreasing profit margin, creates pressure to improve productivity
- Labour cost rising faster than sales do – high % of MOD/Sales
Root Causes
- Fixed team sizes, not adapted to workload fluctuation
- High percentage of time dedicated to processes that are not customer-driven
- Unclear distribution of tasks and process monitoring, leading to low resource occupation
- Differing level of customer service between stores, no company-wide standard
The solution
![](https://kaizen.com/wp-content/uploads/2022/10/image-13.png)
- Daily team sizing, based on customer flow, incoming stock and online order volume
- Task and process standardisation, with frequent monitoring
- Alignment between 200 stores on how to operate, involving operators and team leaders
The Results
This project generated benefits of £28m/year
![MOD Sales](https://kaizen.com/dist/filemanager/Uploads/uk/Case%20studies/MOD_Sales.png)
%MOD/Sales
MOD/Sales reduced by 10%.
![Productivity](https://kaizen.com/dist/filemanager/Uploads/uk/Case%20studies/Productivity.png)
Productivity
Productivity raised by 25%.
![Online Service Level](https://kaizen.com/dist/filemanager/Uploads/uk/Case%20studies/Online_Service_Level.png)
Online Service Level
Online Service Level increased by 11%.
#retail #operations #daily management
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