Case Study Launceston Aquatic - Stock Ordering & Stock Take Process

Situation / Driver:

  • The process for stock ordering/re-ordering and stock take had been in place for many years with no review
  • There was a lack of understanding of exactly how long the process took; therefore no clear understanding of the resources required to complete it effectively, efficiently and effectively
  • There was a perception that there was a lack of storage
  • The data i.e. around costs for items was not always correct in the system
  • There was a lack of space to display stock
  • LA Fit items are sold in a separate space and there’s no cash handling process in place
  • Security gates do not work and items are not security tagged
  • Social Media is not well utilised to promote the sale of products
  • Storage was across multiple areas and was disorganised and untidy, so stock-take is a time consuming and frustrating process
  • Drawers in the shop were not locked
  • There is a lack of process to compare prices with competitors
  • The process for managing stock was in Mandy’s head
  • Leisure and  Aquatic is known for having a great range of quality items
  • There was a Council mark-up for all products

Impact this was having:

  • The process for stock-ordering is adhoc
  • Only one staff member knows how to reorder stock  and do the stock take
  • There ‘s a lack of organisation with space
  • Risk of theft is significant
  • There’s a lot of stock in the system

The approach undertaken:

  • Under the guidance of an External Facilitator, Nikki and Mandy used the Plan-Do-Check-Act and Lean methodologies to:\
    Understand the current situation, the issues and causes of the issues
    - Frame up possible solutions
    - Implement the solutions
    - Understand the difference these solutions made
    - Standardise for the future

Solutions imple mented:

  • Development of a stock ordering and stock take process and capture of this in a process map
  • Use of Lean 5S to implement more organised storage and visual reordering meaning staff are in control, not Sales Representatives
  • Collaborated to the external provider of our system (Links) to ensure the system continues to meet our needs
  • Reviewed the data in the system (Links) to ensure it is accurate and costed correctly
  • Training other staff in how to stock order and use the system (Links) so more than one person knows how to do it
  • Social Media beginning to be used to promote new items, sales etc
  • Benchmarking undertaken with competitors to understand how we compare with our pricing
  • Remove Council mark up
  • Visual Standard implemented to sustain the improvement we’ve made

Benefits Achieved:

  • More organised storage – see photos meaning it is quicker to complete stock take and replenish stock
  • Knowledge of how to do stock reordering  is now shared across the team
  • Information in Links is up to date and accurate and meets financial management auditing requirements
  • Visual alerts are now in place for reordering stock
  • There’s more controlled spending and a better understanding of the items that sell well versus those that don’t
  • There’s now a documented and understood process for stock take so it’s now more efficient and less frustrating

Future plans:

  • During the upcoming refurbishment the following will be considered:
    - Centralising all items (including LA Fit items) into one area with appropriate cash handling procedures in place
    - Security gates that work and items tagged
    - Social Media well utilised to promote the sale of products
    - Lockable drawers e.g. for goggles etc in the Shop
  • Review and update our auditing process to include Lean 5S audits
  • Review Position Descriptions to ensure they are up to date with correct responsibilities