Part 2 of a Six-Part Series.
When a service or product is identified to meet the needs of the customer — as defined by the customer — that item has value. Value is the keystone lean principle, based on the fact that all other lean principles are focused on optimizing the provision of the identified customer value.
Retail value may seem elusive to identify, in that retail is reliant in many ways on the value of the products sold. Within lean’s successful applications in retail, value has been defined in characteristics related to quality, functionality, experience, availability, and beyond.
The heart of Lean Retail value is the idea of “the right products, at the right price, in the right place, and at the right time,” as expressed in these pillars:
- Inventory: It’s important that customers find the right products within store offerings. Retail “value” starts from a basic mandate that items being actively sought by the customer are available to be purchased.
- Merchandising: The value principle extends into the presentation of related, timely, or otherwise desirable products that meet additional customer needs, and grow the shopping cart.
- Convenience: Product availability and frictionless purchasing, at the desired location (in-store or online), and within the customer’s timeframe.
- Price: Customer confidence that products are well-priced reduces anxiety as well as time spent comparison shopping, thus providing value in terms of cost, stress, and time. The ability to provide desired pricing is a Lean Retail value.
- Experience: The expansion of a purchase transaction into a life experience with cultural and emotional meaning can offer tremendous customer value. This value can be provided through loyalty programs, memorable in-store experiences, the ability to express personal identity through brand alignment, etc.
FieldStack Lean Retail Management Software uses Lean principles to optimize resource use and operational flow in retail chains. Contact us to arrange a demo and see how FieldStack can transform your retail chain.
Check out the rest of this series:
- About Lean and Retail
- Principle 1: Value
- Principle 2: Value Streams
- Principle 3: Flow
- Principle 4: Pull
- Principle 5: Perfection