Post by account_disabled on May 1, 2024 22:59:51 GMT -6
Her advice Consider the supply chain foot soldiers—stock clerks trucking coordinators inventory managers—as potential profit drivers rather than the first troops to cut in a downturn. Ton s working paper The Effect of Labor on Profitability The Role of Quality examines how mundane activities such as stocking shelves setting up displays labeling and returning unsold merchandise to distribution centers can seriously affect an organization s bottom line and undermine its strategy.
My research reveals that what happens in the last yards of retail supply chains is really important. Customers often experience stockouts not because the supply chain plans are Heavy Construction Contractors Email List poor as we often assume but because they are not executed well at the stores. Boots on the ground matter a lot. workers on the selling floor it s those ‘boring supply chain activities that are affected first Ton observes. If employees are spread too thin they re going to be rushed. Then they either make mistakes or take shortcuts to get their work done. Merchandise ends up being misshelved or not shelved at all. The store claims to have it but neither the customer nor employees can find it. If other stores have the same product customers will go there instead—and may never return.
Labor As Profit Driver Many retailers see labor more as a cost driver than a sales driver says Ton. The findings from her four year study of stores owned by a large specialty retailer tell a different story. Based on extensive fieldwork interviews and quantitative data Ton s research indicates that increasing the amount of labor at a store is associated with an increase in profit margin.
My research reveals that what happens in the last yards of retail supply chains is really important. Customers often experience stockouts not because the supply chain plans are Heavy Construction Contractors Email List poor as we often assume but because they are not executed well at the stores. Boots on the ground matter a lot. workers on the selling floor it s those ‘boring supply chain activities that are affected first Ton observes. If employees are spread too thin they re going to be rushed. Then they either make mistakes or take shortcuts to get their work done. Merchandise ends up being misshelved or not shelved at all. The store claims to have it but neither the customer nor employees can find it. If other stores have the same product customers will go there instead—and may never return.
Labor As Profit Driver Many retailers see labor more as a cost driver than a sales driver says Ton. The findings from her four year study of stores owned by a large specialty retailer tell a different story. Based on extensive fieldwork interviews and quantitative data Ton s research indicates that increasing the amount of labor at a store is associated with an increase in profit margin.