Implement these 3 Retail-Ready Initiatives
Retail-ready processes enable your operation to ensure that products are placed in the selling space for your customers in the fastest possible time. This means products are available when needed, improving customer service and increasing sales due to less stock-outs.
- Cross-Dock Fast-Moving Items
One project that I had an impact on making changes on involved the processing of cosmetics cartons at a warehouse. The employees opened the boxes from the supplier, checked every SKU against the Purchase Order and then re-packaged the boxes for delivery to the stores. This process delayed the cosmetics to the store by an average of three days. Meanwhile, the top 6 cosmetics suppliers (which represented over 80% of the cosmetics volume) had an average accuracy rate of 99.7%. Although it sounds like a no-brainer, getting the organization to change its practices was not an easy task. After the changes were implemented, 80% of the cosmetics volume was cross-docked through the warehouse. This greatly improved service levels and increased sales at the store level.
- Let the Supplier do Pre-work
If your operation is involved in ticketing items from your suppliers, consider asking the supplier to pre-ticket merchandise for you. It will save many labor hours from your operation. Of course, you may have to ask your Buyer to re-negotiate terms with the supplier; however you may find that the supplier is more efficient at it than you are. Estimate how many labor hours are used to ticket merchandise and factor that into the cost of the merchandise. Work with your Buyer to determine the break-point cost where it makes sense for the supplier to do it. Then re-negotiate with the supplier.
- Use Standard Containers
When transferring product from your supplier to your retail locations, try to use a standardized container to hold the goods so they need not be transferred before they are sold to the consumer. In the fashion industry, standardized hanger programs achieve this. Suppliers that ship goods on hangers to the warehouse must source their customer’s standard hanger from the preferred hanger supplier first to ensure the garments are shipped in the retail (selling) hanger. This eliminates the need to exchange hangers in the back room of the store. Hangers are then recycled through the program, significantly reducing waste.
Another application which is used extensively in the United Kingdom is the use of roll cages. Produce is pre-processed in the warehouse where it is put into standard trays which are then loaded onto roll cages. The cages are then wheeled into trailers for shipping. Upon store arrival, the cages are then placed into the selling area and merchandized right on the cages. This eliminates additional work in the back room of the store.
This ‘systems’ approach to logistics creates merchandise that is “retail ready” for the customer and significantly reduces cycle time and increases productivity. Think about how you can use these principles to simplify and standardize your logistics processes.