© 2013 west monroe partners | reproduction and distribution without west monroe partners prior...

© 2013 West Monroe Partners | Reproduction and distribution without West Monroe Partners prior consent prohibited

Utilizing Simulation to Determine a Retail Best PracticeAbstract #A4066Kate Fisher and Joel BrockWest Monroe PartnersIIE Annual Conference 2014 – Montreal, Canada


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

Introduction

Background

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

Objectives


Stocking of Product

Customer Service

Why Use Simulation to Determine Best Practices?

Register Processing

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.

Core Retail Process Examples:

Develop Current

State Processes

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

Simulation

Process Mapping

Value Stream Mapping

Tools to Analyze Processes

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.

Others


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


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


Findings

Stocking with Pre-Loaded Cart Stocking with Case Spotting

The final results and recommendations will be presented live at the conference session


Key Stocking Lessons Learned

Staging Location

Stocking Variables

8

Cart Travel

Rework

Search Time

Best Practices

TBD

Recommendation

TBD


Questions?

9

Contact Information:Joel [email protected]

Kate [email protected]

mailto:[email protected]

mailto:[email protected]

© 2013 west monroe partners | reproduction and distribution without west monroe partners prior...

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