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Six Sigma for Retail
Lek
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What is best way to measure defects in a retail business in order to improve efficiency? (...) Read more? Sign up for free
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'Defects' in Retail
Michel van Wijk
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Dear Lek, your question is basically very general - it generates too many potential answers for the brief space that we have to respond. However a good technique is to analyze the processes you are addressing and the CSF's for your business, retail in this case. Example in the last category: out-of-stock, to differentiate for store either for warehouse. If you can produce a base measure for OOS in store (and this figure is often quite high), you have a good challenge for improvement. OOS in warehouse, on the other hand produces not only lack of delivery to the stores (with all result of loss of sales etc.) but also waste of costs in DC for non-productive pick-pack labour + additional effort to restore stock levels. Can continue with dozens of other examples but the issue is: analyze and define cost drivers with large(st) impact.
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