LEAN RETAIL
Traditionally, the retail industry has been focusing on early technology adoption as a major driver to improve its bottom line. In the 1980s, unique packaging codes/barcodes together with point-of-sale systems were implemented to boost efficiency and accuracy. In the 1990s more complex planning tools for forecasting, merchandising, smart warehousing/distribution and pricing were introduced to retail operations. And finally, in the 2000s, cross channel integration, ERP platforms, online stores, and pricing/markdown tools were implemented. Still missing, until now, are major improvements/investments in inventory management processes between central warehouse/depots to retail stores/outlets and within retail stores (in-house logistics) themselves. While RFID technology and item-level inventory management systems are considered to be technologies to once again drive retailers’ bottom line, we at Four Principles believe that these technologies, as with any other technology, deliver their full potential only when implemented in combination with a continuous improvement process following and adopting Lean principles (technology follows process - and not the other way round).
