Have you ever met with empty shelves in supermarket? It seems retail chains don’t want to sell.
This is the case when they approached efficiency from a wrong direction.
There are a couple of supermarkets in our neighborhood. If you visit them after 5 pm you can find empty shelves and empty grocery baskets. Meat counter contains a few things left.
You would like to buy salami? Forget it!
Would you eat some simple cheese? Oh, come’ on!
You would buy bakery product? How you dare!?
What about frozen goods? Ridiculous!
You would like to shop at the end of the workday? You are in sane!
Leave your job and go to shop! After job hours only Eaton Hunt from Mission Impossible can manage the situation
The reason is very simple. The typical multinational illness intervene.
Compliance to stock exchange.
Because they have to compliance to the stock exchange the pay attention only to a few simple key performance indicator. Only those are understood by investors who has no any economical knowledge.
The inventory is high? There is a typical sign: there is return! OMG! They do the wrong thing!
This is the point when they call for the efficiency professional.
‘We have return. We have to handle this problem!
‘OK. We’ll measure what happens in the stores and then we make an action plan.’
They start to measure the return. Yes! There are products with expired date! We found the gap! We have to decrease the inventory to prevent return.
The result? – The return starts to decrease. Super good!
They do not ask from the efficiency professional to examine the impact of reduced inventory on revenue. Revenue is simple requested from store workers.
‘Well, you do not get goods but if revenue doesn’t grow you’ll be in big trouble!’
I recommend you to pay attention on your personal efficiency. You have to approach it from different angles. If you intervene in a system in a point it can have an impact on the whole system.