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> A small group of employees also made an alarming discovery that helped explain why certain items appeared to be in stock at headquarters but were actually mis
by faitswulff 11y ago
> A small group of employees also made an alarming discovery that helped explain why certain items appeared to be in stock at headquarters but were actually missing from stores. Within the chain’s replenishment system was a feature that notified the distribution centres to ship more product when a store runs out. Some of the business analysts responsible for this function, however, were turning it off—purposely.
Business analysts (who were young and fresh out of school, remember) were judged based on the percentage of their products that were in stock at any given time, and a low percentage would result in a phone call from a vice-president demanding an explanation. But by flipping the auto-replenishment switch off, the system wouldn’t report an item as out of stock, so the analyst’s numbers would look good on paper. “They figured out how to game the system,” says a former employee. “They didn’t want to get in trouble and they didn’t really understand the implications.”
I think this article, and the employee quoted here, works too hard to excuse immoral behavior in their junior business analysts.
- SixSigma 11y agoFor me it is the fact that they receive punishment for stock outs, especially in a company in such trouble! Why would you only look at stock amount and not stock turn. I would be concerned at "in stock, sold zero". This whole story is a clusterfuck. "We are going to have a new product, it ships on June 1st, no matter how ready it is" has never been a wise choice.
- iSnow 11y agoThe metric is bullshit, those business analysts would get punished even if the delay was not their direct fault. If you go crazy with KPI's, people will find ways to avoid getting bit by them. Show me a metric and I'll show you a game.