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One might think that such a new process could have been rolled in gradually - i.e. start with 20% backroom overhead, and begin reducing a percent a week until t
by thrill 9y ago
One might think that such a new process could have been rolled in gradually - i.e. start with 20% backroom overhead, and begin reducing a percent a week until there is indication of overreaction. Why jump into the deep end of the just-in-time logistics pool right away?
- Spooky23 9y agoBecause “transformation” like this only meets its ROI nut if you adopt the religion in full. This is all about eliminating a few hundred man-hours a week. Instead of having 2-3 guys unloading trucks and staging inventory, the whole staff is engaged, and is wasting a lot of time unless the trucks are loaded perfectly. It’s insane. Instead of the fish or cheese guy selling me high margin product, he’s hunting for cartons. When I worked at a computer store in college, they did something similar, and same store weekday sales of premium products (which drove profitabilty) dropped 25%. But they saved 160 man hours of labor, or about $1,600, which was much less than the lost sales.