A focus on sustainability in the Retail industry has become paramount as consumers expect brands…
I have found that integrating Lean Six Sigma methods with my clients, always leads to great success with better productivity, greater goals and faster results!
To give you an example, I recently applied the 5S methodology – an important Lean Six Sigma waste elimination method that contributes to continuous improvement with a client and together we saw huge improvements within his business.
This methodology was developed in Japan and actively used by Toyota Motor Corporation. 5S is a method focused on effectively organizing a workspace.
The 5 S pillars are – Sort, Set in Order, Shine, Standardise and Sustain. These pillars allow an organisation to provide a methodology for organising, cleaning, developing, and sustaining a productive environment.
Using these pillars with the client I helped him implement these into the management of his stockroom. The client business is an office supply business and as a result, we were able to change his stockroom management. The first thing we did was to sort the current stock holding. We pulled off reports for slow-selling lines and zero sales over a period. This enabled reductions that freed up cash flow. We identify fragmented lines and discontinued lines. Removed dead stock and created school packs with them and these were donated to charity. We carried out a full clean of the stockroom leaving no area unturned. The stockroom was painted.
Secondly, we set up the shortest distance between pick up and movement. We use reporting to identify best sellers. Removed 3 racks from the store and left more room for the walkway. Made 4 distinct isles to pick from. Ordered a new packing station. Completely revamped picking system (day to night). Created picking lists/all EDI invoicing and purchase ledger/booking in before arrival.
Thirdly we put a cleaning rota in place for the stockroom which included floor swept daily, safety inspections and equipment maintenance checks and the necessary documentation to hold accountability.
Fourth we standardise all the labels. This enables us to get rid of all unnecessary information or clutter. Each shelf/container was labelled with all the information needed to increase the correct pick. Daily check set up to ensure compliance.
Finally, Andrew agreed to take ownership of the LEAN stockroom practice by ensuring he implemented a transparent and visible way to record and measure every 5 s activity. As part of this, he prioritises continuous improvement.
This exercise has resulted in increased cash flow, higher margins, quicker stock turn around and increase customer satisfaction.
To find out more about how I can help you and your business by using Lean Six Sigma methods, contact me by emailing firstname.lastname@example.org or alternatively you can call +353894355975