Transcript Career Equity and Experience Maps: Action Plan

© 2013 West Monroe Partners | Reproduction and distribution without West Monroe Partners prior consent prohibited
1
Utilizing Simulation to Determine
a Retail Best Practice
Abstract #A4066
Kate Fisher and Joel Brock
West Monroe Partners
IIE Annual Conference 2014 – Montreal, Canada
© 2013 West Monroe Partners | Reproduction and distribution without West Monroe Partners prior consent prohibited
Introduction
Background

West Monroe Partners (WMP)
 Operations Excellence (OPEX) Solution
Line
• Our Team delivers IE solutions in the
retail industry space

Joel Brock
 BS/MS IE from Northern Illinois
University
 14 years of IE/OE experience
Kate Fisher
 BS IE from The Ohio State University
 Simulation modeling expertise

Objectives
The main objectives of this study are:
 Review how “best practices” play into
retail and why simulation is a great tool
to help make business decisions
 Present information on differing stocking
methodologies, how these impact the
retail store, and why this case study was
chosen
 Portray the approach used in testing the
stocking “best practices” using
simulation, share how others can use the
approach
 Illustrate the outcomes of the simulation
study
 Share key lessons learned
© 2013 West Monroe Partners | Reproduction and distribution without West Monroe Partners prior consent prohibited
3
Why Use Simulation to Determine Best Practices?
Core Retail Process
Examples:
Register Processing
Customer Service
Tools to Analyze
Processes
Develop
Current
State
Processes
Stocking of Product
Simulation
Process Mapping
•
•
Value Stream Mapping
Others
When engineering the retail world, fixed
measureable processes are integrated with
the more randomly fluctuating aspect of
the customer. As a retailer develops a
process both the controllable aspects of
the process and the variable aspects must
be considered.
Benefits of Simulation as
a Process Analysis Tool
•
Ability to model activities
that have variable
components
Ability to test multiple
iterations to scenarios
without having to facilitate
and setup live tests
No limitations in a virtual
world
While possible in static models to capture
variable elements, simulation provides a
virtual environment where multiple variable
elements can be modeled to interact as they
would in the real world. Simulation can
provide backup proof and data that validates
that a best practice is truly a best practice.
© 2013 West Monroe Partners | Reproduction and distribution without West Monroe Partners prior consent prohibited
4
Common Retail Stocking Methodologies
Stocking with Pre-Loaded Cart


Associate stocks with an already loaded cart, relies on
knowledge of aisle and product locations
Store floor remains clear of obstacles and debris
Stocking with Case Spotting


A member of the team with product placement
knowledge pre-positions the cases in the correct aisle
near the product location for a second group of
associates to follow through and stock to final location
Creates a double handle of each case and places
obstacles in the aisles which can affect the customer
© 2013 West Monroe Partners | Reproduction and distribution without West Monroe Partners prior consent prohibited
5
Approach
Stocking with Pre-Loaded Cart
Stocking with Case Spotting
Baseline – determine a baseline scenario (same cases, aisles, product) that will be modeled utilizing both processes
Build – create two models that utilize the same baseline data run through the two different processes
Analyze – test both models determine which process steps cause the most variability to the outcome
Design – based on the model output, present a preferred best practice that minimizes the labor requirement
© 2013 West Monroe Partners | Reproduction and distribution without West Monroe Partners prior consent prohibited
6
Findings
Stocking with Pre-Loaded Cart
Stocking with Case Spotting
The final results and recommendations will be
presented live at the conference session
© 2013 West Monroe Partners | Reproduction and distribution without West Monroe Partners prior consent prohibited
7
Key Stocking Lessons Learned
Stocking Variables
Best Practices
Staging Location
Search Time
TBD
Cart Travel
Rework
Recommendation
TBD
© 2013 West Monroe Partners | Reproduction and distribution without West Monroe Partners prior consent prohibited
8
Questions?
Contact Information:
Joel Brock
[email protected]
Kate Fisher
[email protected]
© 2013 West Monroe Partners | Reproduction and distribution without West Monroe Partners prior consent prohibited
9