Ex-Accenture team has developed a program for diagnosing operations for retail

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The Russian company, which was previously part of the Accenture global network, has developed a program for diagnosing operations for retail. The ex-Accenture team’s service will help retail chains reduce costs by optimizing workspaces, implementing standards, developing clear visual instructions for employees and other initiatives.

According to the company’s experts, optimization helps to add from 3% to 20% to the productivity of stores and increase revenue by 1-2%. According to Accenture’s experience, the implementation of initiatives reduces from 9-10% of labor costs for a chain of stores. Customer satisfaction is increased by 2-5% due to the presence of the right product on the shelf. According to Accenture experts (the company has been handed over to the Russian management), the overall effect for a retail network can reach 1% of sales – for example, for an average network from several hundred to a thousand stores, this is up to 1.5 billion rubles. in year.

“Russian retail chains are going through a difficult moment today. Due to inflation, the purchasing power of the population is decreasing: according to Romir, in April 2022, the average check in stores fell immediately by 6.1% compared to March. Purchase prices are rising, logistics costs are rising, and technological development is complicated by the departure of foreign vendors. These processes dictate the need for retailers to reduce costs in all key operations,” said Alexey Sidorovhead of retail consulting at Accenture (the company was transferred to the Russian management).

Retail diagnostics help identify issues such as imbalanced resource allocation, miscalculated workloads, equipment and workspace issues, incorrect schedules, frequent reprioritization, and so on.

The project includes interviews with employees, observations of operations, analysis of the daily rhythm of the store and KPI, assessment of the utilization of working time and productivity of employees, and other types of measurements. For diagnostics, from 1 to 8 outlets are selected, the process takes from 3 to 7 weeks. The survey can include both all the main operations of the store, and operations only for certain categories of goods, for example, perishable goods, or areas of the store, for example, only a warehouse or a trading floor.

“The goal of Operations Diagnostics is to develop a set of specific initiatives to improve store performance. For example, a company may need to reduce excess product touches or synchronize the shelf replenishment schedule with other activities such as receiving or replacing price tags. Also a common problem is often changing priorities, when sellers switch from one unfinished task to another during the working day. By finding and solving these problems, federal and regional retail chains can significantly increase the efficiency of operations,” said Timur ShayakhmedovRetail Consulting Line Manager, Accenture.

On April 12, 2022 the Accenture company announced full transfer of the Russian part of business to local management. The new technology consulting company will be completely independent of Accenture’s international network. The team is currently working on creating a new brand in the domestic market.

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