Question

Please write a detailed paragraph on each questions based on the knowledge in Supply Chain Management!

1. Discuss three key design/operating considerations when implementing lean in a retail environment.

2. Describe three benefits from implementing a decentralized, low-coordination procurement model.

Answer 1

1. Discuss three key design/operating considerations when implementing lean in a retail environment.

1. Improved customer service, should be achieved from implementing lean in retail. Better services & communication can happen that too without investing in to labor costs.
2. Efficiency increase by predicting demand in almost all parts & eliminating loss of efforts, time & money. Analyzing where extra efforts, time & cost are invested & nullifying by implementing better processes & activities.
3. Removing Bottlenecks in the entire processes & for all the processes. The Lean retail should be implemented in such a manner so that bottlenecks are removed.

1. Describe three benefits from implementing a decentralized, low-coordination procurement model.

1. Better Decision making with more timely decisions. Lower line of managers have more insight to the problematic areas in an operation & they can deal in a much better way than in comparison to higher departments. They understand the problem & provide an answer more timely by comparing the local situations.
2. Keep motivate the mid-level management employees. This helps them feel empowered & held themselves accountable for making any decision which is in good interest of their peers & subordinates. This boost the morale of the people in an organization. Decentralization gives more power to local leaders as they have closer proximity to the problem.
3. Diversification, in a decentralized environment wherein organization is divided into smaller units, work can be conducted easily around different markets, product lines & different locations. Diversification of activities, products, services, responsibilities would be seen.