Consideraciones sobre el equipo

Store Managers’ Influence on Range of Products

As the product list was issued by HQ, all FS’s stores basically offered a similar range of products, varying between 60 to 80 per cent of HQ-listed products. The remaining percentages of products were provided to meet local market environment or customers’ requests.

“…60% of the product categories and assortments we offered in our store were prescribed by HQ. They know which products were popular (in Singapore) so we just follow their list. However, we have been operating in this neighbourhood for over 10 years, so we have local knowledge and experience (requests from regular’ customers for items not on HQ product list). Therefore, 40% of our product categories were for customers in this store (location).” Acting Assistant Manager, N-2-A

Store Managers’ Influence on Store Operations

With in-store operations, GSOPs were adopted with minor customisations due to customer requirements, requests and the respective store managers’ expectations of their in-store performance. For example, the acting Assistant Manager of N-2-A expected stackers to ensure display shelves ‘looked’ fully stocked, i.e. bottles had to be placed to the edge of display shelves, with products’ front facing forward (see Figure 4-20). If there were insufficient bottles to fill the display shelf, bottles had to be moved to the edge. The space behind the bottles was deliberately left empty to help staff identify which items needed immediate replenishment. Display shelves that were not fully stocked were considered unacceptable by store managers of some stores (see Figure 4-21). This SSOP was implemented because customers provided feedback that they ‘liked’ to see well-stocked and neat display shelves. However, the Assistant Manager of C-1-C instructed stackers to fill empty spaces with other stocks to optimise space (see Figure 4-22). It was then the responsibility of stackers to remember which stock was placed at those ‘floating’ locations.

117 The different approaches and expectations towards on-shelf availability and display affected the efficiency of replenishment activities.

Store managers in this group experienced varied levels of pilferage. To manage inventory shrinkage caused by pilferage, various methods to increase security levels were established.

Figure 4-20 Display shelves to be fully stocked

Figure 4-21 Display shelves not fully stocked

118 Store managers of single storey stores appointed staff to ‘double-up’ as security personnel, while the two- and three-storey supermarkets as well as the hypermarket used a combination of security teams and CCTV to monitor customer and staff activities.

“We use our CCTV cameras to monitor customers shopping in our hypermarts. As the store has different stories, sometimes, it takes time for us to get to the thief. So we take a screen shot of the thief, print out the image and put it on the notice board in our office so that all employees can keep an eye out for such people. … By doing this, we can point out the ‘regulars’ who keep stealing our goods.” Acting Assistant Manager, N-2-A

Stores’ Relations with Store Staff

Store managers in this group maintained a strict compliance with HQ’s approach towards staff lapses in performance. The store managers and supervisors did not hesitate to reprimand staff when mistakes occurred frequently.

“We all work as a team. Therefore, everyone must be responsible and do their job properly. Otherwise, customers will complain or we may have to compensate customers for our mistakes”. Assistant Store Manager, C-2-C

“All of us (store management levels) have done stacking and replenishment before we come to this position. So we know how the process is and what can be done to ensure good performance. That is why when staff make mistakes, we quickly investigate to see what is the cause of the mistake – is it because they don’t know the process or they are too lazy to follow process. We train when we need to, we scold when we have to.” Store Manager, E-5-B

As mentioned in Chapter Three, the case supermarket chain had no set procedures to calculate either the cost of OOS and OS or the duration of OOS. However, store managers maintained a firm control on staff who committed mistakes that had implications to OSA, especially on high turnover products. In fact, one of the criteria for staff performance appraisal was the ability to minimize the number of mistakes that had a direct impact on inventory record.

“Receiving is very important. If my staff makes mistakes, it will affect the inventory records of my store. If there are always mistakes, HQ will issue a “please explain” letter and that is not good for the performance record of my store.” Acting Assistant Manager, E-6-B

119 Stores’ Relations with Headquarters (HQ)

Store managers in this group maintained close reporting relationships with HQ, working with specific colleagues at HQ to discuss matters related to inventory levels, in-store ordering and incorrect deliveries (product or quantity) from HQ.

“If there is a problem, we just call HQ. We will follow up with an email. But we normally call them first to see what happened and discuss how to resolve the matter. Usually, a phone call can settle everything…and it is fast. Sometimes, we also have to know ‘who’ to call…and then everything will settle very quickly.” Store Manager, E-5-B

The timely provision of the list of products and their barcodes was one of the causes of OOS and OS in stores. Despite store managers’ regular communications with HQ, delays persisted in getting the list of product barcodes, as well as updates on the list before stores opened for business.

“Sometimes, there are arguments at the cashier because the customer argues with the cashier on prices. The newspaper says it is on discount but because we didn’t get the list on time, our system still shows the original price. We then have to quickly call HQ to verify and then charge the customer the correct price. Every time HQ don’t give us the list (of updated barcodes), we experience such problems. We have spoken to HQ several times on this and they always blame the suppliers (for being late).” Manager, E-4-A

“……because we know HQ is not always on time to give us the list, so we run around the store to update price tags and our system as soon as we get updates. It is tiring but blaming is not going to help. So we help ourselves to minimize customers’ conflict. As our store is big, it is actually good exercise for us too so we don’t mind doing it. But it gets difficult when the store is very busy.” Acting Assistant Manager, N-2-A

Stores’ Relations with Suppliers

Store managers in this group worked closely with their suppliers. In addition to access to the FS’s inventory systems, they communicated with their suppliers regularly to investigate errors and resolve conflicts, and when necessary, they approached suppliers’ sales representatives and discussed product promotions and customers’ feedback on their

120 respective products and brands. It was also observed that store supervisors in this group helped suppliers’ sales representatives to replenish or arrange stock on display shelves.

“Sometimes, when customer traffic is low, we will help suppliers as they replenish stocks. While helping them, we would chat with them about the status of their company, about any new upcoming products or promotions. We do this to maintain good relationship with them. You see, these suppliers also ‘service’ our competitors. So with good relationships…if anything happens, for example, we need urgent stocks, they would put in extra efforts to meet our requirements. If the supplier was new to our store, we will also help them…guide them on how we want our display shelves to look. In our opinion, if we help them, (in hope) they will help us back. Suppliers were also happy to share product knowledge with us because they know if one of their products was OOS, we would promote substitute products or flavours or packaging (from the same supplier) to them. Suppliers were also aware that if their competitor brand was OOS, we would promote their products as substitutes. They also knew we tend to promote new products to our regular customers. So in a way, we are helping them (suppliers) to create awareness of their products.” Manager, E-2-B

However, despite such efforts, stores in this group still experienced noticeable errors caused by suppliers, such as incorrect deliveries and incorrect barcodes on packaging. These errors caused inaccurate information in the inventory systems of the stores as well as those of the suppliers.

“Despite working closely with our suppliers, we still experienced inaccurate deliveries. Each time it (e.g. incorrect deliveries) happens, we would call the affected suppliers for clarification and we found that the information on our systems don’t match those at suppliers’ information system. I think problem will require some time to get it right. We will just have to continue to work closely with our suppliers.” Manager, Acting Assistant Manager, E-6-B

Stores’ Relations with Customers

Store managers in this group were diligent in ‘spotting’ customers that seemed to need their assistance or advice on products or brands. As the checkout stations were located near the entrances of the stores, store managers in this group proactively stationed themselves near the checkout stations, and attempted to greet customers entering the store. But it was their diligence in helping customers with product assistance that constituted the majority of their dealings with customers.

121 “We have a lot of China foreign workers shopping at our store after their shift work. As they are

unfamiliar with the brands common in supermarkets in Singapore, very often they would ask us for recommendations. In addition, they will ask us to recommend the cheaper range of food products and household items as well.” Manager, E-3-B

“My store is small so I know where the stocks are very quickly. Quite often, the maids (domestic helpers) would come with two young children and ask me to help them pick a few items because they struggle to control the children inside the store…so if we’re not too busy, we will do it for them..even if the store is a bit busy, the maids can see, and so they will wait a little while…but we still help them…it is okay.” Assistant Store Manager, C-2-C

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Stores with Medium Occurrence of OOS (Medium-OOS)