Common challenges faced in the industry and PMC solutions
Challenge #1 – Associate inefficiency PMC Solution: Research has shown that standard retail associates spend up to 50% of their working day walking from department to department, or from zone to zone. Although associate visibility is crucial, often this walking time leaves their specific department unstaffed and customers become frustrated with the lack of sales assistance. PMC uses the Pre-determined Time Study methodology and Work Sampling Techniques to create detailed work instructions that can reduce the waste and optimize profits.
Challenge #2 – High transportation costs PMC Solution: An optimized network has the potential to generate the most savings in merchandise supply chain costs. Furthermore, an optimized network promises to cut an average of 5 to 10 percent of the cost of product transactions. PMC assists companies as they design the most effective network which utilizes assets according to their business strategies. Once a network structure is identified, using analytical software tools and statistical methods, one can identify the most cost-effective inventory strategy considering the multiple tiers of the inventory echelon. With this effective network your organization will be able to respond to customer demand in the most profitable way.
Challenge #3 – Customer dissatisfaction PMC Solution: Most problems with customer dissatisfaction stem from lack of associate availability. By calculating associate utilization rates with work measurement, improvement areas can be clearly identified. Therefore non-value added activities and tasks can be eliminated, and labor costs can ultimately be reduced. Standard retail activities commonly reviewed include zoning, stocking, asset protection, and customer assistance.
Challenge #4 – Sales revenue decrease PMC Solution: In order to reduce static shelves and increase inventory turns, retailers need to eliminate waste and boost value-added activities. PMC works with organizations to identify and eliminate waste with work measurement, develop labor standards/work instructions, and identify specific store/international supply chain areas for improvement.
