easy to produce a staff rota as employees can fulfil a variety of tasks. Employees can carry out whatever tasks are needed throughout the day, leading to time-based savings. Training, high wages and a diverse job role all help to motivate staff. This in turn leads to lower sickness levels and a more empowered team. The process of buying and selling within Aldi stores also operates on time based management principles and means that they require fewer tills and cashiers. For example, products display numerous bar codes. This means that cashiers do not have to search for them and they can be scanned more quickly. Customers place products back in the trolley after scanning. They then pack their bags away from the till after paying. This helps throughput. It is also more efficient as another customer can have their shopping scanned as the previous customer packs. Again, these cost benefits can be passed on to customers. These savings help Aldi to operate more efficiently as an organisation. The savings are then passed on to its customer. This is in the form of quality products at prices that are lower than the competitors. Aldi | Competitive advantage through efficiency GLOSSARY Multi-skilled: Having a number of different skills enabling staff to undertake a range of different roles within the workplace. Empowered: (People) given sufficient authority to exercise control and responsibility in their work environment. Working capital: The day-to-day finance needed for running a business. In accounting terms it means current assets less current liabilities. Simplicity Responsibility Consistency Core values
JIT Aldi uses a just-in-time approach to store management by only holding the stock that it needs. Stock is expensive. The company therefore only buys the stock required at any given time. When stock levels are reduced an organisations working capital is improved. In other words, Aldi is not tying up too much investment in stock that is then going to be held for a long period of time before it is sold to generate income. It also means Aldi does not pay for large warehouses to store stock or pay for additional staff to monitor warehouse stock. From the moment stock arrives at an Aldi store everything is focused on reducing the cost of holding and managing the stock. For example, products are delivered in display ready cases. Once the top of the case is removed it can simply be lifted onto a shelf for display to customers. Units of 12, 24 or more can be handled easily and quickly merchandised . It means that individual units are not picked and lined up on shelves. In fact some products are sold in store from a pallet. This is a platform for large loads that can be brought mechanically into a store. This is an efficient way of getting a large volume of products into the shop very quickly.
You've reached the end of your free preview.
Want to read all 4 pages?
- Spring '14
- Business, Kanban, Lean software development, lean production