White Paper Presentation  On The Five S’s of Retail Operations A Model and Tool for Improvement Presented to – Prof. Sapna...
<ul><li>“ Retail is detail”   </li></ul><ul><li>The three most important factors for success in retailing are </li></ul><u...
Fundamental Problems in a Retail Store   <ul><li>Dirty Fresh rooms  </li></ul><ul><li>Messy Trail /Dressing Rooms  </li></...
Objective of the Study <ul><li>Understand what the challenge is perceived by expert, practitioner & authors in Retail. </l...
<ul><li>Hypothesis 1 </li></ul><ul><li>H0 = “Relevance of Five S’s in a Retail store.” </li></ul><ul><li>Hypothesis 2 </li...
Literature Review  <ul><li>Understanding Consumer Motivation and behaviour related to self – scanning in retailing   </li>...
<ul><li>Research Design  </li></ul><ul><li>Exploratory  </li></ul><ul><li>Descriptive  </li></ul><ul><li>Data Collection  ...
Cause Effect Diagram  <ul><li>It is a tool that is supposed to help search for the root cause of problems.   </li></ul><ul...
 
The Adapted Cause - Effect Model  <ul><li>Stock  </li></ul><ul><li>Staff </li></ul><ul><li>Space </li></ul><ul><li>Systems...
Stock  <ul><li>The 7 R’s of merchandising </li></ul><ul><ul><ul><li>Right  Product  </li></ul></ul></ul><ul><ul><ul><li>Ri...
Space  <ul><li>Space management  </li></ul><ul><li>Display according to company policies  </li></ul><ul><li>Logical Sequen...
Staff <ul><li>Argos Catalogue store operation </li></ul><ul><li>Complexity of product  </li></ul><ul><ul><li>E.g. Subhiksh...
Systems  <ul><li>Include the ordering of stock </li></ul><ul><li>The display and rotation of stock  </li></ul><ul><li>The ...
Standards  <ul><li>Opening hours  </li></ul><ul><li>Credit facilities  </li></ul><ul><li>Fitting rooms </li></ul><ul><li>R...
Example One – Lays  <ul><li>Misplaced SKU  </li></ul><ul><li>Incorrect Inventory Record  </li></ul><ul><li>Scanning Lays S...
 
Example – Two – Stock loss  <ul><li>Stock loss level to the order of about 4 per cent of sales in ladies’ dresses   </li><...
Continued … <ul><li>The second stage of analysis demonstrated that dresses were “going missing” on a specific day of the w...
 
Scope of the Research  <ul><li>It will provides a model for the mangers to improve the performance of the store  </li></ul...
Conclusion  <ul><li>It is believed that the model presented here will provide managers with a useful guiding framework tha...
 
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  1. 1. White Paper Presentation On The Five S’s of Retail Operations A Model and Tool for Improvement Presented to – Prof. Sapna Modi Presented by – Jainesh A Shah PGDM – 42
  2. 2. <ul><li>“ Retail is detail” </li></ul><ul><li>The three most important factors for success in retailing are </li></ul><ul><li>Location, Location, Location”. </li></ul><ul><li>“ Retailing is a simple business” </li></ul>
  3. 3. Fundamental Problems in a Retail Store <ul><li>Dirty Fresh rooms </li></ul><ul><li>Messy Trail /Dressing Rooms </li></ul><ul><li>Loud Music </li></ul><ul><li>Handwritten Signs </li></ul><ul><li>Stained Floor or Ceiling Tiles </li></ul><ul><li>Crowded Aisles </li></ul><ul><li>Disorganized Checkout Counters </li></ul><ul><li>Lack of Shopping Carts/Baskets </li></ul>
  4. 4. Objective of the Study <ul><li>Understand what the challenge is perceived by expert, practitioner & authors in Retail. </li></ul><ul><li>It then aims to unpack some of the perceived wisdom as to what constitutes a successful retail operation in India </li></ul><ul><li>Reviews the academic and practitioner literature on retail operations and identifies five core elements of retail operations. </li></ul><ul><li>Proposes a method by which managers can examine ways of improving their operations by the use of a modified cause-effect technique. </li></ul>
  5. 5. <ul><li>Hypothesis 1 </li></ul><ul><li>H0 = “Relevance of Five S’s in a Retail store.” </li></ul><ul><li>Hypothesis 2 </li></ul><ul><li>HO = “Ishikawa model helps identify problem and improve retail operation.” </li></ul>
  6. 6. Literature Review <ul><li>Understanding Consumer Motivation and behaviour related to self – scanning in retailing </li></ul><ul><ul><ul><ul><li>Pratibha A Dabholkar, University of Tennessee, USA, L. Michelle Bobbittt, Bradley University, Peoria, Illinois, USA </li></ul></ul></ul></ul><ul><li>Linking consumer perception to preference of retail stores: an empirical assessment of the multi-attributes of store image </li></ul><ul><ul><ul><ul><li>Doreen Chze Lin Thanga, Benjamin Lin Boon Tan - National University of Singapore, Singapore </li></ul></ul></ul></ul><ul><li>A new wave of merchandising </li></ul><ul><ul><ul><ul><li>www. imagesretail.com </li></ul></ul></ul></ul><ul><li>Functional differentiation in retail presentation </li></ul><ul><ul><ul><ul><li>by Simon G Blore </li></ul></ul></ul></ul>
  7. 7. <ul><li>Research Design </li></ul><ul><li>Exploratory </li></ul><ul><li>Descriptive </li></ul><ul><li>Data Collection </li></ul><ul><li>Primary Data </li></ul><ul><li>Disguised Observation in Unstructured way </li></ul><ul><li>Secondary Data </li></ul><ul><li>Search Engine/ Web site Used </li></ul><ul><li>Books Referred </li></ul>
  8. 8. Cause Effect Diagram <ul><li>It is a tool that is supposed to help search for the root cause of problems. </li></ul><ul><li>The “usual” questions of managers is answered by the model such as </li></ul><ul><ul><ul><li>What </li></ul></ul></ul><ul><ul><ul><li>When </li></ul></ul></ul><ul><ul><ul><li>Where </li></ul></ul></ul><ul><ul><ul><li>Why </li></ul></ul></ul><ul><ul><ul><li>How </li></ul></ul></ul>
  9. 10. The Adapted Cause - Effect Model <ul><li>Stock </li></ul><ul><li>Staff </li></ul><ul><li>Space </li></ul><ul><li>Systems </li></ul><ul><li>Standards </li></ul>
  10. 11. Stock <ul><li>The 7 R’s of merchandising </li></ul><ul><ul><ul><li>Right Product </li></ul></ul></ul><ul><ul><ul><li>Right Quality </li></ul></ul></ul><ul><ul><ul><li>Right Quantity </li></ul></ul></ul><ul><ul><ul><li>Right Price </li></ul></ul></ul><ul><ul><ul><li>Right Place </li></ul></ul></ul><ul><ul><ul><li>Right Mix </li></ul></ul></ul><ul><ul><ul><li>Right Time </li></ul></ul></ul>Lack of product availability Lack of proper mix Inventory Cost Markdowns Dissatisfaction
  11. 12. Space <ul><li>Space management </li></ul><ul><li>Display according to company policies </li></ul><ul><li>Logical Sequence </li></ul><ul><li>Perishable goods / Impulsive goods </li></ul>
  12. 13. Staff <ul><li>Argos Catalogue store operation </li></ul><ul><li>Complexity of product </li></ul><ul><ul><li>E.g. Subhiksha </li></ul></ul><ul><ul><li>E.g. Croma </li></ul></ul>
  13. 14. Systems <ul><li>Include the ordering of stock </li></ul><ul><li>The display and rotation of stock </li></ul><ul><li>The procedures for selling </li></ul><ul><li>OTB Plan </li></ul><ul><li>Queuing System </li></ul>
  14. 15. Standards <ul><li>Opening hours </li></ul><ul><li>Credit facilities </li></ul><ul><li>Fitting rooms </li></ul><ul><li>Returns policy </li></ul><ul><li>Stock availability </li></ul>
  15. 16. Example One – Lays <ul><li>Misplaced SKU </li></ul><ul><li>Incorrect Inventory Record </li></ul><ul><li>Scanning Lays Salted twice instead of </li></ul><ul><ul><ul><li>Scanning One Lays Salted </li></ul></ul></ul><ul><ul><ul><li>and </li></ul></ul></ul><ul><ul><ul><li>Scanning One Lays Masala </li></ul></ul></ul>
  16. 18. Example – Two – Stock loss <ul><li>Stock loss level to the order of about 4 per cent of sales in ladies’ dresses </li></ul><ul><li>Measures </li></ul><ul><li>A system of stock checking of ladies dresses on a daily basis. </li></ul><ul><li>Staff were introduced to a paper-based checking and counting system that required them to physically count the stock </li></ul><ul><li>Non-selling spaces such as in window displays, on mannequins </li></ul><ul><li>Staffs were encouraged to report known losses in a blame-free environment </li></ul>
  17. 19. Continued … <ul><li>The second stage of analysis demonstrated that dresses were “going missing” on a specific day of the week. </li></ul><ul><li>Re-allocating staff to this “danger day” helped, as did the introduction of hourly counts which gave further evidence of the loss occurring towards the end of the day when staffing levels were at their lowest. </li></ul><ul><li>Due to lowest staff strength and it was near entrance and exit point theft was easily possible </li></ul>
  18. 21. Scope of the Research <ul><li>It will provides a model for the mangers to improve the performance of the store </li></ul><ul><li>It also helps the manger to effectively and efficiently run a store </li></ul><ul><li>The research will limit itself to stores only in Mumbai. </li></ul><ul><li>The study focuses only on Retail Operation </li></ul>
  19. 22. Conclusion <ul><li>It is believed that the model presented here will provide managers with a useful guiding framework that can be exploited in the retail operations process. </li></ul><ul><li>It is important to note a crucial caveat, namely that the store manager’s influence over elements of the five Ss differs significantly </li></ul><ul><li>Even responsibilities, accountabilities and control are not uniform and are strongly dependent. </li></ul>

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