The retail industry was not kept aloof from the influence of the Lean Six Sigma Methodology. As a result, the retail sector has grown manifold and has touched new zeniths of success, with better customer satisfaction and Customer-centric approaches.
Amazon; the retail giant of the entire retail industry worldwide, uses Lean process in its business. Lean Six Sigma flows in the bloodstream of Amazon since the day, the company was founded by Jeff Bezos. The organization uses the Six Sigma methodology and the KAIZEN methodology in every corner of the business process. The company is customer-centric, and thus it has the maximum numbers of employees working in the fulfillment centers. There are ample of customer service centers than there are Computer Science Engineers. Therefore, the company is focused on developing the user experience to upsurge the business process.
The Lean Six Sigma methodology was used in almost all workplaces, including multinational organizations, distributors and small companies. In the list of top 10 tools for occupational safety and health administration, the pedestal grinder tool remained. After analyzing the job hazards, and Six Sigma Failure; the safety and hazard risk were eliminated from the process. Along with that, the lost productivity due to on-duty injuries was reduced, which was followed by an excellent safety culture. The organizations thus experienced a significant quality enhancement in their productivity, delivery and lower cost.
According to the business blogger of Croatian; Vedran Pavlic, the Croatian companies, lack and left behind while it comes to improve the operational capabilities of the organizations. Other foreign companies, while competing the Croatian companies, use the Lean Six Sigma Methodology in enhancing their business flaws and understanding the defects lying under the organization process. It helps them to become more competent.
Not only in the industries or multinational companies; Six Sigma is now a part of non-industrials organizations too, including banks, hospitals, and municipals. Previously the Lean Six Sigma methodology was used by industries to provide and deliver quality products to its users. The purpose of using Six Sigma is no more adhered to provide quality product or material anymore.
The main focus of utilizing the methodology is converting any service or product with a customer-centric approach. Thus non-industrial organizations also use the Six Sigma methodology for customer satisfaction.
We all know about the global brand Nike and the quality products that this company offers to the users. Nike is basically in the manufacturing of sports footwear, clothes and gear. Apart from focusing on global marketing and providing quality materials to all age, sex, and sports category in 190 countries, this company focuses on creating excellent stakeholder relations too.
For the purpose, the company applies the Lean Six Sigma Methodology, and it reports several billion dollars every quarter in their growth purpose. The 5 years plan of Nike too includes Six Sigma.
Small and medium-sized enterprises are also focused on getting an improved bottom line to have a smooth operation in their business. Thus leveraging the Six Sigma methodology helps them in many ways to do so. It is imperative for rising companies to maintain the standard of their product and keep on the practice of regular improvement while keeping their cost in a reasonable state.
The lean process helps them to cut the cost of production while improving quality and productivity. Also, it helps them in reducing time and adding value to their products or services.
Accenture helped the Lean Six Sigma process of the organization to achieve dozens of improvement and in generating million dollars of benefits. As a result, the company became able to return a 10 times investment return to its process improvement program.
· Lean improved the company’s item order cycle and fasten the ordered items be present in the store on given dates.
· The company eliminated the special handlings between their merchandise and dock loading.
· The company invested in its customer fulfillment segment and saved almost 50% of their budget reduction target.
LEAN FOR SAVING $100 MILLION
The company claims of achieving a saving of $100 million in the last 6 years from its Six Sigma Programs.
The $9.4 billion brands are one of the world’s most valuable brands. Many organizations want to know the secret behind Zara’s success. It’s that Zara uses the Lean Six Sigma Process in their business planning to execution. Taken from saving time to valuing customers, Zara’s business module is based on the chosen methodologies of the Lean process.