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Facility Layout
ZONING OF AREAS WITHIN THE STORE
INSPIRE
EXPLORE
PURCHASE
Main Entrance
Inspire
Push Corner/Best Sellers/New Arrivals Section in first 3m of store
Explore / Engage
Clear specific themes on product display.
Explore / Engage
Explore lighting options in various settings.
Consultancy / Purchase
Transformed resource moves according to established sequence Layout of transforming resources optimised
Transforming resources are fixed and the transformed resources take an appropriate pathway through them
Process Flow
Inspire
Explore
Purchase (Consultancy)
10
ADVANTAGES
High product and mix flexibility Relatively robust in case of disruptions Ease to supervise
PHILIPS BRAND STORE PROVIDES TOTAL LIGHTING SOLUTIONS WHICH INCLUDE INTERIOR DESIGN CONSULTANCY, HOME LIGHTING DESIGNER SERVICES AND STYLE ORIENTATION /COMPATIBILITY TO HOME
DISADVANTAGES
Low utilization Can have very high inventory 500 skus LOW VOLUME HIGH VARIETY HIGH VARIATION HIGH VISIBILITY
Copyright 2006 John Wiley & Branded Retail Philips Way Sons, Inc.
2-12
Retail Implications
Lighting Playground
Clean, Bright, Uncluttered, Highly Interactive Being a Protagonist
Operational Implications
SERVICE = EXPERIENCE + OUTCOME
ADVANTAGES Service experience maximization The lay-out allows showing more products variation and its applications helping on the sales process (managing multiple customers).Tentative to make more tangible the service outcome providing customer value : 3D software (innovation) DISADVANTAGES Increase complexity in staff requirements (software knowledge / more and specific sociable interaction). Increase one more step in the process (coordinating different parts of organization) communication between front and back office. Increase time in service experience (including 3D simulation) could lead to workload increase staff or customer waiting time. Risk of increase after sales services as a result of 3D simulation (results could not fit customer requirements) How to ensure consistent quality in the lighting consultancy and designs? It is an additional service, not provided before, that requires management. Increase sales but increase costs too = can I charge more for it? Extremely flexible processes may be excellent for responding to a wide range of special customer requirements but may be quite costly to maintain (R.Johnson and G.Clark, 2005).
Thank You.
References
Johnston, R. and Clark, G. (2005). Introduction to Service Operations
Management: Improving Service Delivery. 2nd ed. Harlow: Pearson Education Limited.
Slack, N., Chambers, S., Johnston, R. and Betts, A. (2009). Operations