Discount Retailer Realizes Efficiencies in Stocking, Replenishment and Recovery

A Discount Retail Leader operating over 1,400 brick-and-mortar storefronts across the US

Efficiency Improvement
Annual Direct Cost Savings


Our Client had experienced stead decline in a highly competitive industry over the last 5 years even though it had posted record numbers the year prior. Although they had an expansive store network, they were struggling to allocate labor hours properly for 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.


Our team was 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, a labor model was built to more accurately predict required labor hours. We also optimized processes by:

  • Eliminating excessive labor hour allocation – determined required time to complete activities based on volume and other factors
  • Increasing process efficiencies – by defining standard operating procedures, roles and responsibilities
  • Eliminating unnecessary steps taken – for introduction of new processing equipment and reorganization of the stockroom layout, streamlining the inventory management process

These solutions were validated and subsequently rolled out network-wide to more than 70 high-volume stores, realizing pilot efficiencies at scale.

Value Created

As result of this pilot initiative, our client realized immediate financial benefits and efficiency improvements:

  • $1.08M in annual direct labor savings, a 12% increase in Cartons Per Hour (CPH) attributed to process redesign and labor modeling
  • 27% efficiency improvement in stocking, replenishment, and recovery activities

Additionally, the client maintained a better in-stock position and reduced “stock-outs” through improvements to stockroom organization and layout.

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