system 21 has operations throughout the world

Case studies

A Boost to Profit in Retail

In the retail sector and in particular the "Big Shed" operations, there is a constant pressure to perform for both shareholders and the public. Pressure on price and customer service is paramount in the battle to distinguish one branded store from another. But margins, value for money and product quality must also be maintained.
To succeed systems must be slick, with efficient administration and constant monitoring of suppliers - both their supply sources and product distribution. The delicate balance between staff costs and expected customer service adds to the complex equation. Staff motivation is also critical in the effective delivery of customer service.

Engineering change in retail operations therefore requires the involvement of all staff in a participative process, rather than the top-down imposition of new procedures and systems by management.

System 21 breaks down the retail operation into separate manageable and measurable chunks. The retail store can be seen as a process - products come in through the back door as inventory and go out through the front door as sales. Different inventories require different activities and handling processes. But in general, the whole cost structure of the business - margins, service level, quality and image - is determined by what goes on between the front and back doors. In addition, administration services, logistics and financial control systems each affect the core business operation.

This approach transforms the retail operation into a modular structure. Each module is measurable and controllable, as is the whole system. Working with management and staff, we are are able to develop sophisticated labour scheduling techniques, stock cover determination and logistics planning to optimise the allocation of expensive overhead resources. This means lower prices and improved customer service, as waste and overheads are controlled more effectively.

Most food, building products, white and brown goods retail operations today have IT systems providing accurate data on a range of customer and stock information, from the rates of customers per hour to the highest selling line item per stock category.

Through IT and effective management decision making, it is now possible to run a "virtual" store in real time. Many companies lack the management control and reporting systems to utilise their IT data this effectively.

System 21 consultants work directly with clients' staff and management to design control systems and report formats. These improve the interpretation of simultaneous data, enabling managers to react much faster to increase sales or reduce overhead costs. Net result - increased profitability on increasing turnover.