Playing Safe – It’s Unsafe in Today’s Retail World

Written by John Stanley


It is 2005 and retailing is as dynamic as ever. We are seeing some major changes inrepparttar retail industry, which is makingrepparttar 143456 industry more dynamic than we have seen for a number of years.

The big “box” stores have become a firm part ofrepparttar 143457 retail landscape, although there are still major growth opportunities for them in some regions, such asrepparttar 143458 Middle East. But overall they are a part of most consumers’ lives. They had a major impact onrepparttar 143459 independent retailers andrepparttar 143460 result is that many ofrepparttar 143461 independents have simply disappeared. However,repparttar 143462 survivors are starting to make an impact again inrepparttar 143463 retail environment.

What haverepparttar 143464 survivors learnt? Surviving independent retailers have discovered that playing safe isrepparttar 143465 worst thing they can do. Playing safe means doingrepparttar 143466 same thing as last year withrepparttar 143467 hope they will be just as successful. In today’s retail jungle, playing safe is a recipe for failure. Successful retailers realise that they have to play unsafe to gain market share. Taking risks is part of their everyday strategy and an acceptance that all risks will not be a success is also part of that strategy. To illustrate where I am coming from lets look at some unsafe businesses.

Mid Ulster leadrepparttar 143468 way Mid Ulster Garden Centre in Northern Ireland, had a indoor houseplant department like those you will see in many parts ofrepparttar 143469 world. Jim Bradley,repparttar 143470 owner, had started to consider house plants a waste of time, since it was not bringing inrepparttar 143471 return per square yard/metre he was expecting from his profitable business. It was time to play unsafe or get out ofrepparttar 143472 category. Along with Jim, we analysed whatrepparttar 143473 category was all about, safe thinking said “indoor plants”. Unsafe thinking said he was in “living gifts, living art and living rooms”. This meant rethinkingrepparttar 143474 whole category and playing unsafe, by re-merchandisingrepparttar 143475 whole area. This included introducing fashion statements, table lamps and gifts. Safe thinkers may be concerned about how plants would be watered, but when you play unsafe you start thinking about ways to overcome such perceived problems.

The key to playing unsafe is to measure what is happening. In year to year figures, sales at Mid Ulster have increased by 265%, whilst customer sales have increased by 212% overrepparttar 143476 same period againstrepparttar 143477 previous year. If you analyse specific product groups withinrepparttar 143478 category, ceramic pot sales have increased by 730% and are now 18% of category sales. Indoor plant feeds have increased by 56% and are now 3.5% ofrepparttar 143479 category. Plant shrinkage is now less than 1% of sales. According to Jim, it pays to play unsafe.

Kanban Selected by KOYO and dj Orthopedics

Written by Thomas Cutler


1000% growth in e-kanban services inrepparttar past twelve months has North Carolina-based Datacraft Solutions (www.datacraftsolutions.com) poised to capture significant percentage of lean manufacturing organizations business.

According to Sam Bayer, President of Datacraft Solutions, “We have seen explosive growth from major manufacturing enterprises with Lean initiatives. From Wiremold to dj Orthopedics to KOYO to Outokumpu, our e-kanban system, Signum, is being used throughout North America.”

Fax Kaban is not Efficient and not Lean

At ten minutes per fax, someone is spending 3.5 hours per day in administration time. That inefficiency results in less time to utilize more suppliers or improverepparttar 143455 relationships with existing suppliers.

Furthermore, even if 99% of those faxes are trouble free procurement signals, four faxes per month are going to be problematic and diluterepparttar 143456 entire rationale for a lean manufacturing operation. Suppliers claim they did not receiverepparttar 143457 fax kanban; suppliers cannot makerepparttar 143458 shipment date requested and expedited shipping fees are incurred, or worse, there will be a stockout which will negatively impact customer service levels.

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