Playing Safe – It’s Unsafe in Today’s Retail WorldWritten by John Stanley
It is 2005 and retailing is as dynamic as ever. We are seeing some major changes in retail industry, which is making industry more dynamic than we have seen for a number of years. The big “box” stores have become a firm part of retail landscape, although there are still major growth opportunities for them in some regions, such as Middle East. But overall they are a part of most consumers’ lives. They had a major impact on independent retailers and result is that many of independents have simply disappeared. However, survivors are starting to make an impact again in retail environment. What have survivors learnt? Surviving independent retailers have discovered that playing safe is worst thing they can do. Playing safe means doing same thing as last year with 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 lead way Mid Ulster Garden Centre in Northern Ireland, had a indoor houseplant department like those you will see in many parts of world. Jim Bradley, owner, had started to consider house plants a waste of time, since it was not bringing in return per square yard/metre he was expecting from his profitable business. It was time to play unsafe or get out of category. Along with Jim, we analysed what category was all about, safe thinking said “indoor plants”. Unsafe thinking said he was in “living gifts, living art and living rooms”. This meant rethinking whole category and playing unsafe, by re-merchandising 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% over same period against previous year. If you analyse specific product groups within 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% of category. Plant shrinkage is now less than 1% of sales. According to Jim, it pays to play unsafe.
| | Kanban Selected by KOYO and dj OrthopedicsWritten by Thomas Cutler
1000% growth in e-kanban services in 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 improve 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 dilute entire rationale for a lean manufacturing operation. Suppliers claim they did not receive fax kanban; suppliers cannot make 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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