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The shop floor isn't the most inviting place to be these days if The Financial Times Limited's recent report bodes accurate. When the publication reported, “Conditions on the shop floor look treacherous, it pointed out, “Many companies have already shut up shop. The final branches of Woolworths closed this week and a number of companies have fallen into administration. Waterford Wedgwood became the latest household name to collapse this week, following, among others, Zavvi, the music retailer, and Adams, the children's clothing chain.”
Matters look no more promising across the pond in the United States, where electronics giant Circuit City, low-cost clothing retailer Steve & Barry's and bedding specialty Linens 'n Things are just the latest casualties in a long line of retail closings. And this dire shop floor situation doesn't look to improve anytime soon. “Also, as banks remain reluctant to lend, many more retailers could run out of funds and have no choice but to close or offload stores.”
One cited expert believes that cash flow will be the one factor that will separate the best and worst shop floor performers. “Cash flow implications from being overstocked are worse than most people think and could question the survival of even large retailers. I'd back a strong balance sheet and a management that has planned its stock cautiously.”
The more shops dwell on this trend, they less likely they'll be able to focus on the strategies that will keep them from becoming the next shop floor victim. So what can they be doing to keep their heads above the water? A real-time data collection system that provides job tracking and shop floor control can provide seamless oversight, so that shop floor managers can concentrate on their bottom lines.
Shop floor management software affords better scheduling, work in progress (WIP) tracking, data collection, and time and attendence labor management. And shop floors that meet or beat schedules, stay ahead of the curve in their workload, track their expenses like a hawk and have a team of laborers who are committed to putting out a stellar product each and every day will be the most likely to weather the dismal retail storm.
The easier it is for a shop floor manager to see what is going on in the factory, the easier is is for him or her to maintain control. A Manufacturing Execution System (MES) puts a visual factory right before the shop floor manager's eyes. From that perspective, he or she can make sense of all the shop floor data that is being collected. As a result, he or she can see how effectively labor time and machine resources are being used. From there, the shop floor manager can identify areas for making process improvements.
Then, when unanticipated changes arise, effective decisions can be made by the shop floor manager on the spot. Decision support is provided by “seeing” each and every part and process in real time. This viewpoint helps reduce the need for expensive outsourcing, safety stock and premium transportation, while improving shop floor labor efficiency and machine utilization. And in today's retail climate, shop floor survival depends on ultra-efficiency.
A recent U.K. “TimesOnline” article declared in its headline, “We cannot stand still on the shop floor.” The subheadline gave further insight into this call for action: “You change or you die: a leading retailer describes his strategy for surviving the downtown.” Of what downturn does this article speak? The one that's led to the recent closing of big-brand retailers like Circuit City. Oh yeah, that one.
When even well-established retail kings are perishing under the recession's stranglehold, shop floor managers cannot afford to rest on their laurels. They must constantly fine-tune their operations to stay afloat in this floundering economy. In the wake of uncertainty, however, “planning and forecasting” are “exceptionally hard,” as the article pointed out.
“Modern supply chains need to have the agility to react to changes in the market almost instantly,” the TimesOnline report illuminated. It went on to suggest that “The way customers shop is also undergoing a revolution and businesses have to be quick to adjust. …Second, retailers need to keep investing – in new store space, in the supply chain, in technology and in infrastructure.”
What proactive measures can and should retail management be making to stay on top of the situation? Topping the agenda is getting in touch with their factory floor. The article concludes, “Those businesses that have the courage to commit to key investments will emerge stronger … That means investing in people and skills as well as buildings and technology.”
Shop floor management software might be just the technology that will save the day for retail factory floors. For the past quarter century, such technology has been helping manufacturing companies implement innovative, state-of-the-art software solutions with powerful results.
A leader and innovator in information systems solutions for manufacturing companies can equip retailers with the products they need to manage inventory better, shrink cycle time, and increase productivity. All of these benefits, in turn, allow the shop floor manager to focus on the necessary business matters to stay afloat in these trying times. More specifically, state-of-the-art software solutions help manufacturing companies to improve the use of information systems in controlling and managing their businesses.
Now more than ever, lean manufacturing is becoming a requisite mode of survival in the world of retail manufacturing. As the key to improving a company's floor performance, customer responsiveness, and, ultimately, bottom line, no modern-day establishment can afford to turn a blind eye to the approach. Fortunately, factory floor management technology can aid in the implementation of lean manufacturing. By entrusting the implementation of lean manufacturing to an expert, manufacturers are likely to experience superior results, less disruption on their factory floors, and a quicker return on their investment.
Surviving in the retail world in the face of a firmly entrenched recession is a scary proposition, but the right shop floor management software solution can take a lot of the fear out of a manager's daily grind. That way, he or she can focus on what really matters: racking up sales and avoiding becoming yet another casualty of the times.