The Warehouse Group - Organizational Structure and Performance
The Warehouse group is New Zealand's largest retailer, operating multiple outlets under various brand names. It focuses on several product lines such as grocery, electronics, gardening, clothes, and sporting items. The firm, which was founded in 1982, has more than 92 warehouse stores spread around the country and is publicly traded on the country's Stock Exchange. It has relied on its organizational framework to improve operational efficiency over the years. As a result, the purpose of this study is to examine the company's organizational system and performance, as well as lean principles.
Organizational Structure
For an organization to perform effectively, it ought to have an efficient structure that involves the entire stakeholders. In other words, there should be coordination between the top management and the employees for operations to be run smoothly. The Warehouse functions in three major formats in different divisions i.e. Red Sheds (Warehouse New Zealand), Blue Sheds (Warehouse Stationery), and Noel Leeming. It comprises eight board of directors who are involved in decision making. The three different stores are meant to ensure customers of the various products have adequate access to the same. For instance, the Red Sheds comprises of a selection of merchandise such as toys, house products, sporting goods, apparels, health and beauty aids. The Blue Sheds has stationeries, office products, printers, and computers. On the other hand, the Noel Leeming stores electronics and appliances. Under the guidance of these directors, each division has a manager who reports to the overall officer in the headquarters.
Performance and Growth
As elucidated above, these divisions are vital in heightening the efficiency of operations and reaching a wider market. It is for this reason that the company has grown and increased their stores across the country. For instance, in 2015, the Warehouse group recorded an income of NZ$2.77 billion, which translated to a 4.6 percent increase from the previous year. Each of the stores has its own manager who is charged with overseeing the operations of the store including employees and customers' demands. The store manager makes decisions regarding the respective store and only asks for assistance from the higher body when necessary. This division of labor and decision making speeds up the company operations making it more efficient.
Lean Principles - Enhancing Product and Service Quality
Lean principles is the system of nonfinancial controls that are utilized in enhancing product and service quality. In the process, waste is reduced while efficiency is heightened. It is mainly used in operations like product development and processing. Lean principle seeks to utilize limited inventory, workers, and space while maintaining high-performance levels. The five fundamental principles include defining value from the customer's view, creating flow in the value stream, establishing the value of stream for each good or service, producing at the pace of the client's demand, and striving to enhance business operations constantly.
Defining Customer Value
The first principle mandates the company to offer products and services that are in line with the customers' wishes. The Warehouse group seeks to operate under conditions that are favorable to the consumers. For instance, the three major divisions i.e. Red Sheds, Noel Leeming, and Blue Sheds offer products that suit the different consumer demands. As required by this principle, the corporation has to define the value from the consumer's perspective and strive to provide the same. Their definition of value entices consumers; hence, the continuous growth across New Zealand as portrayed by the continuous opening of stores. The managers and all people involved in Warehouse group should understand the desires of their customers including time and price as they offer the products.
Creating Flow and Establishing Value in the Value Stream
In the second principle, Warehouse group offers complete products and services to the consumers and include elements of indirect events such as management of the materials, purchasing, order processing, and direct manufacturing. It is imperative that a corporation describes the value of the different products as they avail them to the consumers. Throughout their branches, Warehouse group provides high standard products and services that meet consumer expectations. It is the sole reason why the Warehouse group stands out in comparison with its competitors.
Smooth and Constant Operations
The third principle requires that activities be run in a smooth and constant manner from the onset to completion. The opening of various stores across the country is meant to increase Warehouse group flexibility. Organizations tend to increase flexibility via the reduction of production batches, which is also portrayed by the Warehouse group. The fourth principle also encourages the production of products and services at the pace of the customer. Unlike corporations that predict demand levels and offer goods and services in line with them, the Warehouse group provides the goods according to the customers' demands. In that regard, the corporation can respond to the consumer demands quickly. Furthermore, they are able to lessen inventories for work in process and the finished goods.
Constant Enhancement of Business Events
Finally, the Warehouse group aligns itself with the fifth principle that entails constant enhancement of the business events. This is because it constantly believes that it can improve regarding product and service delivery. This principle has enabled the corporation to expand and meet the consumer demands across the country. Furthermore, it has enabled the Warehouse group to enhance their goods and services regarding quality; hence, making it a reputable brand.
References
Aleksandra Andelkovic, M. R. (2016). Effects of Lean Tools in achieving Lean Warehousing. 517-534.
Kevin. (2015). The Warehouse Statergy Analysis. Retrieved from https://www.scribd.com/document/257583216/The-Warehouse-Statergy-Analysis
Nightingale, D. (2005, September 12). Fundamentals of Lean. Retrieved from https://ocw.mit.edu/courses/aeronautics-and-astronautics/16-852j-integrating-the-lean-enterprise-fall-2005/lecture-notes/2_lean_fundament.pdf
The Warehouse Group. (2017, March 9). The Warehouse Group Interim Result. Retrieved from http://www.thewarehousegroup.co.nz/
The Warehouse Group Limited. (2017). Summary of CEMARS certification. Retrieved from https://www.enviro-mark.com/__data/assets/pdf_file/0005/126536/Disclosure_1516_TheWarehouseGroup_CM_Org.pdf
The Warehouse Group. (n.d.). Sustainable Development Reporting Case Study. Retrieved from http://www.sbc.org.nz/__data/assets/pdf_file/0005/55589/The-Warehouse-SDR-Case-Study.pdf
