A Discount Retail Leader operating over 1,400 brick-and-mortar storefronts across the US.
Despite being in a highly competitive industry in steady decline over the last 5 years, this company posted record numbers last year. Due to continued growth and an expansive store network, this client was struggling to allocate labor hours properly to inventory stocking, replenishment, and recovery activities. With no defined and documented standards in place, labor was allocated in lump sum amounts based on store size.
We engaged with 10 stores over the course of a 12-week pilot study, interviewing staff and performing time and motion studies to establish a baseline for performance. Having collected 10,000+ data points, we built a labor model to more accurate predict required labor hours. We then identified and tested solutions in several areas:
These solutions were validated and subsequently rolled out network-wide to more than 70 high-volume stores, realizing pilot efficiencies at scale.
As result of this pilot initiative, our client realized immediate financial benefits and efficiency improvements:
Additionally, the client maintained a better in-stock position and reduced “stock-outs through improvements to stockroom organization and layout.