Font Size: a A A

Research Of Organization Of Self-service In The Retail Network

Posted on:2020-01-15Degree:MasterType:Thesis
Country:ChinaCandidate:F Y S o f i a P i a t a i Full Text:PDF
GTID:2439330602964259Subject:Business Administration
Abstract/Summary:PDF Full Text Request
Retail has a special place in the organization of trade services for the population.Retail is the final link,closing the chain of economic relations in the process of distribution from manufacturers to consumers.Retail has so firmly entered modern life that we no longer notice it.Being buyers,people do not think about what difficult decisions are taken by the heads of trading enterprises,what technologies they offer goods and services.To retail network was competitive,you must always improve all the life processes of the organization of this network.Retailers provide customers with services that facilitate the process of buying and using goods,demonstrate the goods they have,so that consumers have the opportunity to examine them,hold them in their hands,and often try them out even before they make a purchase.In addition,the organization of self-service should not forget about working to improve the quality of customer service.As you know,a high level of service is the key tosuccess for any store.Polite,attentive,well-known proposed product,sales consultants,a wide range,decent design of the sales area,attractive appearance of the store,the surrounding area,convenience of the store location,location of product groups and presentation of certain goods,comfortable movement and choice of goods,if all the elements are thought out and chosen correctly,then it is quite natural that they all constantly work to improve the quality of customer service,which is called a high level of service.The purpose of this master's thesis was to study the organization of the self-service process in the retail network.In the first chapter,a definition was given of retail network and the level of retail trade in the world and Russia was considered.Retail is the sale of goods to the final consumer to meet his personal goals,not related to commercial activities.In today's global retail,there is a significant increase in competition.In the US,the food retail market has always been extremely difficult and was characterized by intense competition and low profits.The French company Carrefour plans to make large-scale reductions as part of the restructuring,given that not so long ago the company was among the three largest in the industry.In the UK,there are still consequences of leaving the EU.The weakening of the pound sterling leads to an inevitable increase in import prices.Meanwhile,in the EU,the situation is more favorable.In Germany,Spain,the Netherlands,high growth rates are observed.This reflects the positive effect of tightening monetary policy.Inflation in the EU is low.The growth rate of the Chinese economy increased to 6.9%.Among the economic achievements of the country,it is necessary to highlight the decrease in unemployment,the growth of the stock market,the increase in reserves and a significant improvement in the business climate.Moreover,in 2017 there was a growth in retail sales of consumer goods.Retail network in the real sector of the Chinese economy is characterized by rapid growth,sales,increased profitability of companies,as well as qualitative growth.If you turn to the global rating of retail chains,it is worth noting that the five leading enterprises have retained their leadership positions.The combination of factors such as organic growth,the conduct of major acquisition transactions and the volatility of foreign exchange rates led to rearrangements within the top 10 global retailers.The report "The World Retail Sector in 2018"also provides an overview of the main changes in the rules of retail trade during the next stage of radical transformations.In order to revitalize commercial activity,it is necessary to introduce innovations,updated interaction tools,consolidation,integration and automation,which will improve the efficiency of retail business both now and in the future.Comparing the level of retail trade in Russia and in the world,we can conclude that Russian retail chains have the opportunity to be leaders in the world.However,in order to do this,they need to increase sales and quality of service.It is also noted that the level of retail trade is consistently high,and competition between retail chains is getting tougher every year.Some large Russian retail chains are ranked in the 250 best retail chains in the world(in terms of profits)rating.One of such networks is LLC Lenta.The choice of this network of hypermarkets is not accidental:it is one of the fastest growing and fastest growing networks in the world.In Russia,LLC Lenta ranks fourth in the ranking of the best retail chains.In order for this network of hypermarkets to rise in the ranking,it is necessary to fight with competitors for each client and increase the efficiency of all business processes in the organization.In the second chapter of the thesis,the types of network retail and the main methods of retail sale were considered.Retail network is a group of stores,usually united under one brand,implementing the same product policy,and having a common infrastructure:warehouses,suppliers,logistics and partners.Such stores can be combined under one owner,often used franchising.By passing this retail network can be divided by the size of stores.The main types of retail chains are hypermarkets,department stores,supermarkets,specialty stores,convenience stores,discounters,fixed-price stores,kiosks,catalog sales,and an online store.In the retail,one of the most popular types is the supercenter(hypermarket).A striking example of this type is Walmart,which is also the most successful and profitable retail now.Since the object of the research was the retail network of hypermarkets LLC Lenta,the definition of a hypermarket was considered in more detail.Hypermarket ? retail outlets ranging from 4 to 20 thousand square meters selling food and non-food goods in a self-service format.The largest hypermarket in Europe covers an area of 67 thousand square meters located in Ireland.In Malaysia,there is a hypermarket area of 112 thousand square meters.The range of hypermarkets exceeds 30000 names of goods.Hypermarkets are often located not far from residential areas,less often outside the city near busy highways.The average receipt of a hypermarket is on average 4000 rubles,while it can reach 10000 rubles.The main methods of retail sale are self-service method,the service method across the counter(individual service),the sale of goods on samples and the sale of goods from catalogs.The most popular methods are the self-service method and the method of selling goods across the counter.A comparison was made between these two methods,during which it was found that objectively the self-service method is the most convenient and effective method of retailing goods.Shops that use the form with individual service significantly slow down the sales process,increase the time spent by the population on the purchase of goods,and have a lower carrying capacity.They use the trading area less efficiently,higher the cost of manual labor,it requires many sellers.However,we cannot exclude the sale of goods across the counter:in some cases,this method is more convenient and has no alternatives for the sale of a certain type of goods.It is advisable to use the sale through the service counter for such goods that cannot be transferred to independent selection by buyers,since they require special,careful handling,which is achieved by the presence and participation of the seller in displaying the goods,explaining its properties and features,checking the quality of the goods in the presence of the buyer,demonstrating in action.In general,sales of goods across the counter are more efficient than self-service and other progressive methods,provided shops provide a wide range of bulk goods and low intensity of customer flows.Since the target for the study was LLC Lenta,which is a network of hypermarkets,respectively,has large retail space,high customer throughput and a wide range of goods.Thus,in this case,the self-service method is the only correct one.The main advantages and disadvantages of the self-service method were also analyzed.One of the advantages of self-service is the increase in turnover.Perhaps the main advantage of the format is that,compared with the classical one,it gives a minimal increase in turnover.When translating a traditional-format store for self-service in conjunction with the restructuring of all business processes under it and the introduction of active merchandising,some stores have seen an increase in sales.The next benefit was a more efficient use of retail space for shops of more than 60-80 square meters.If you do not take into account stores that are too small for self-service,this format allows you to more effectively use the area of the shop's trading floor,placing a greater number of items.Accordingly,with an increase in the number of commodity items in the assortment,the turnover increases as well.One of the significant advantages is that with the growth of the sales area,the efficiency of the staff's labor increases,as well as its quantity decreases.These factors cause a more efficient use of the wage fund,which affects the overall cost reduction.In addition,in self-service stores,the work of the staff is quite simply built into the system,which reduces the dependence of the success of the store on its qualifications.One of the major shortcomings of the self-service method is an increase in theft.The high level of theft in a self-service store is the main argument of opponents of this format.Indeed,in such stores they steal more and have to allocate additional funds for the installation of security systems.With a well-functioning security service,the losses from theft are minimal,and the additional cost of the format is the payroll of the security service.For medium and large self-service stores,the level of turnover more than compensates for all these costs.When you open a self-service store,you enter into competition with powerful online retail stores.If you do not have a network,it will be hard to compete in this sector.The main factors here are more conditions of suppliers for large networks,streamlined and proven business processes over the years,high customer loyalty to well-known networks.One of disadvantages is also to include a reduction in customer service compared to traditional stores.It is known that the main advantage of shops with trade through the counter is a high level of customer service,because the process of any purchase is associated with direct communication between the seller and the buyer.Many people just because of this personal communication,and prefer traditional shops.In order to analyze how effective the self-service method in the retail network is,it is necessary to consider this method as a business process.The next chapter defined the business process,and described the algorithm and method for evaluating the effectiveness of the business process.A business process is a chain of logically related,repetitive actions that use the resources of an enterprise to process an object(physically or virtually)in order to achieve certain measurable or results or products to satisfy internal or external consumers.Business process modeling is a reflection of the subjective vision of the processes actually existing in the organization using graphical,tabular,textual presentation methods.The efficiency of a business process is the ratio of the result of the process to the resources spent on its receipt.Any organization process can be analyzed in terms of meeting certain requirements.Currently there are no specialized standards in the world governing business process requirements.Modeling business processes(examples of which are also given here)requires that all operations of an enterprise be as clear and transparent as possible.This will allow them to analyze in the best way and identify various problems before they fail.In order to organize business processes,it is necessary first to investigate the actual state of the processes in order to obtain certain data.For example,how long the order runs,how much money is spent on processing,what delays,working conditions,etc.Then it is necessary to work out the options for solving certain problems and problems obtained in the analysis.Therefore,in the first place,an observation was made of how the process of selling goods is being implemented at LLC Lenta.For each business process,the same characteristics can be applied,namely:process boundaries-boundaries(beginning and end),within which the operations of the process are performed.Process owner-a person who has resources at his disposal,plans,manages the process,bears responsibility for its result and efficiency,ensures the interaction of all participants in the process.Input process-request,materials,information that initiates the start of the process.Output process-material and information objects that are the result of the execution of the process and consumed by external clients in relation to the process.Process performers-organization personnel engaged in carrying out process operations.Process resources-material or information objects that are constantly used in the process,but not transformed by the process(information,equipment,software,transport,etc.).Its evaluation criteria are indicators used to make decisions regarding a process by its owner or top management.After selecting a process,the next step was to determine how the selected process interacts with other processes in the organization,thus,first,it is necessary to determine the inputs and outputs of the process.After determining the inputs and outputs of the process,it is necessary to examine all the documents that affect the organization of the process in the organization.Documents can be internal or external.Further,the main operations for the implementation of the selected process are highlighted.To identify a business process means to identify and describe the components that characterize it:the owner of the process-the person who has the resources of the process,has the rights,is responsible for the results and organization of the process;process technology-the procedure for carrying out activities to transform the information and material flows of the business process from the input(source objects)to the output(result);a system of process indicators-product indicators,business process efficiency;customer satisfaction indicators;process management-the activity of the process owner in analyzing data on the process and making management decisions;process resources-information and material resources that the owner distributes in the course of planning the implementation of the process,and takes into account when calculating the effectiveness of the process,as the ratio of resources expended on the result of the process;business process interface-a set of objects through which a business process interacts with other processes.The importance of correctly defining the listed components of a business process is connected with the need to single out areas of responsibility and coordination points for effective management.Here the following pattern is manifested:the more managed business processes,the more interfaces and the need for coordination at the inter process level.Conversely,the smaller the business processes,the wider the area of responsibility of the owner(manager)of the process that coordinates the execution of functions within the process.To determine the boundaries of the business process,the input and output uniformity factor is usually used.To determine the boundaries of the business process,the input and output uniformity factor is usually used.Therefore,if the outputs of all interrelated operations are tied to the same management unit(object),for example,an order,then there can form a business process that is managed as a single entity.In this case only the state of the managed object changes in the business process.For example,accepted order,secured order,completed order,paid order,and issued order.There are some general rules for identifying processes in an organization.By the nature of the activity and the relation to the product being created,the organization's processes can be divided into four main types,covering:main business-processes;supporting business processes;business-management processes;business development processes.Currently,several methodologies are used to describe business processes.The most common are the methodology for creating structural type models,the methodology for describing workflows(Work Flow)and the methodology for describing data flows(Data Flow Modeling).The long-known and widely used methodology for the structural description of business processes is the US standard IDEFO.IDEFO approach was developed based on the SADT structural analysis and design methodology in 1963,since the development of the standard has not changed significantly.At present,the development of the IDEFO methodology is associated with the development of its supporting tools-software products for modeling business processes(for example,Casewise,Business Studio,etc.).The notation makes it possible to reflect different types of feedback in the process model:information,management,movement of material resources.Complex mechanisms of decomposition of the process model in IDEFO greatly simplify the work of the analyst.Note also that the models in IDEFO notation are structural and are intended to describe the business at the top-level.Their main advantage,in our opinion,is the ability to create a top-level model and describe the management of the organization's processes.To describe the business process of selling goods by self-service methodology was used IDEFO.An important factor in any business process will be its efficiency,and the most important task of management is to improve the performance of each business process continuously.In order to offer customers high-quality goods or services,the company must control the internal processes of their creation.Sophisticated and well-established business processes ensure a high level of quality.The main task of management is to determine accurately the most essential components of the process for its subsequent evaluation,optimization and development of implementation standards.The choice will be made easier if you identify customer requirements and conduct research on the components of a specific process that is related to the most significant characteristics of a product or service.It has become a tradition to copy any innovations introduced by competitors.These innovations excite the minds of marketers,and they enthusiastically offer to copy them in order to keep up with competitors.However,plagiarism does not always justify itself,it is better to spend money and efforts on studying behavioral and operational indicators that are directly related to the quality of the service(product),financial result and the degree of customer satisfaction.One of the most important operational indicators and evaluation criteria for any company should be an indicator of the duration of the process completion cycle.The total cycle time is the amount of time that passes from the moment the task starts to the moment it is completed.For example,the duration of a customer service cycle in sales is calculated from the moment an order is accepted from the customer to the delivery of goods to the customer or the issuance of an assembled order from a warehouse.The indicator of the duration of the working cycle is very important not only from the point of view of the internal calculation of cost,but also from the point of view of its importance to the client.The group of technical indicators for assessing business processes includes indicators characterizing the efficiency of using the means of production to carry out business processes.These include indicators of the use of equipment,software,and the technology itself run the business process.These indicators can be calculated for processes occurring at enterprises in different areas of activity.However,a number of common indicators can characterize business processes:the number of functions in the process performed at workplaces,the number of process personnel,including managers and specialists,the number of automated workplaces.Reflecting the efficiency of the organization of business processes,technical indicators can be used in a comparative analysis of processes with the processes of a competitor's enterprise.At the same time,a number of conducted assessments of technical indicators leads to the conclusion that it is more appropriate to use relative indicators than absolute ones,due to the more informativeness of the data obtained.Such an approach allows one to make the most substantiated conclusions based on the results of the calculations carried out and to develop appropriate management decisions aimed at improving the implementation of business processes.It is important,according to the results of the analysis,to get not just many technical indicators in absolute terms,but use their dynamics to make appropriate decisions,which is possible because of relative indicators.Among the most important groups of indicators for evaluating processes are the indicators of the quality of business processes.Considering that quality reflects the ability of a process to meet the needs of its customers while minimizing resources,as a key aspect of determining the quality of a process,we highlight customer orientation.Indicators for assessing the quality of a process that do not take into account customer needs cannot be considered tools for process improvement.It is possible to trace the change of this group of indicators by analyzing the failures occurring during the operation of the process,occurring in various external and internal abnormal situations.If you know the causes of the problems,it is possible to determine directions for improving business processes.In the practical part of the master's thesis,the history and characteristics of the selected retail distribution network LLC Lenta were reviewed.Lenta is a distinctive group of hypermarkets in Russia with a focus on pricing,and led by a highly qualified management team.Lenta has an attractive,integrated business model and has good opportunities for growth in the Russian food retail market.LLC Lenta organizes exemplary trade and customer service,independently and on its own behalf concludes contracts,acquires ownership,owns,uses and disposes of the property necessary for the implementation of its activities.LLC Lenta carries out retail trade with the population.Trade and production activities of the store is carried out according to the assortment list approved by the Center of Sanitary and Epidemiological Surveillance.To carry out its activities,LLC Lenta opened in the prescribed manner a bank account,has an independent balance,its own seal.The profit received by the store because of its business activities is subject to taxation in accordance with the laws in force.Profit remaining after taxes(net profit),comes at the disposal of the store.According to the form of product specialization,this store should be attributed to the group of universal stores,whose range is built based on a wide range of product groups.LLC Lenta is designed to serve the most popular buyers and has the greatest ability to build a wide range of products with prices that satisfy different contingents of buyers.In order to make sure that the company is able to achieve these goals,what opportunities and threats may arise in the near future,a SWOT analysis of the company was carried out.Strengths include the use of an integrated supply chain(IT platform),a wide range of products,convenient hypermarket location(large parking),a website with current promotions and all information about the company,a wide range of additional services,stable growth and the opening of new hypermarkets throughout Russia.Weaknesses include weak communication policies,reducing the number of studies on consumer demand,the lack of additional services to stimulate sales aimed at children,the lack of packaging services for goods,the lack of advertising about additional services.A large number of intermediaries in the purchase of goods from the manufacturer.Opportunities include the expansion of the sales area,employee training directly at manufacturing plants,the growth in consumption of Russian products,the search for new suppliers,and an increase in the minimum wage.Threats include the absence of new ideas and approaches to improve the efficiency of the customer service process,the occasional analysis of the implementation of additional services,an increase in the value-added tax,a small number of suppliers of high-quality Russian products,and increasing inflation.The results of the calculation of the assessment matrix showed that the greatest value was determined in the Strength and Opportunities field,therefore,the main goal of the activity is to obtain maximum profit.As a result,it is recommended to use the strengths of the enterprise for the realization of opportunities related to the external environment of its activities;expansion of retail space(construction of an attached cafeteria,construction of a private bakery);strategic alternatives increase Sales of existing products(use of sales promotion,search for new suppliers,control over the quality of the supplied goods,monitoring the prices of competitors);the creation of new products in the existing market(opening its own bakery).An economic analysis of the main network performance indicators was also carried out.In the course of the analysis,it was revealed that the growth in gross profit was a little behind the growth in revenue from the sale of products,which indicates a relative decrease in the efficiency of productive activity.In the period under review,there is a gradual increase in the value of fixed assets.A possible reason for the growth was the renewal and opening of new retail space in Siberia.Since the growth rate of this indicator lags behind the growth rate of sales revenue and gross profit,we can conclude that fixed assets are used more and more efficiently with each period.LLC Lenta increases the number of employees every year.Yet,labor productivity remained the same,the rate of growth.The dynamics of profit from sales and net profit are also growing steadily.Despite the increase in sales profits,sales profitability decreased.With a steady increase in the cost of fixed assets and cost of sales(costs),there is a decrease in sales profitability,which is due to the fact that inflation growth outpaces revenue growth,and in 2016 the product range was updated,which could also cause a decrease in sales profitability.In the period under review,the capital-labor ratio,that is,the sum of the average annual value of fixed assets per employee has decreased.This is explained by the fact that the growth in the number of staff in 2016 did not exceed the growth in the value of fixed assets.However,in 2017,the growth of fixed assets was insignificant,and the growth in the number of staff remained almost at the same level.The main indicators of the efficiency of use of fixed assets is the capital productivity and capital intensity of products.In general,we can note a positive trend in all indicators of the efficiency of use of fixed assets.This trend coincides with changes in the indicators of renewal of fixed assets and an increase in the number of personnel.Gross profit and sales revenue at the enterprise tend to increase.The cost of goods sold,work,and services also grew.Almost all revenues were generated due to the result of the main activity-revenue;its increase provided a significant increase in total revenues.The net profit indicators in organizations tend to increase,which indicates a satisfactory financial condition of the organization.It was concluded that in the period 2015-2017 LLC Lenta worked efficiently:it remained profitable and quite profitable,despite the growth of inflation and the constant updating of the range.In order for the new hypermarket to bring high profits,it is necessary to attract and retain customers.Thus,the quality of customer service should be improved.Further,the self-service process was monitored and all documents related to this process were reviewed.Self-service allows you to speed up the sale of goods,increase the capacity of stores,and expand the volume of sales of goods.This method provides free access of buyers to the goods laid out in the trading floor,the ability to independently inspect and select them without the assistance of the seller.Payment for selected items is carried out in the cash register of the store.As a result,the following operations were identified:familiarizing the buyer with the range of goods sold;the formation of the motivation of choice of goods by the buyer;selection of selected products(if necessary,their weighing),payment for selected goods and receipt of purchase.Based on the theory presented in chapter 3,the business model of the self-service process in LLC Lenta was compiled in IDEFO notation,and all documents related to the regulation of the self-service process in the Lenta hypermarket network were considered.Thanks to this business model,process and performance indicators have been developed.In this thesis,temporary and qualitative performance indicators of the process were considered,since they are the most important for the customer service process.The effectiveness of the self-service process was also assessed.According to the results of this analysis,no major problems were identified,but areas were identified for improving the process,the most important of which is the low throughput of customers at the settlement site.Thus,measures were proposed to improve the process of self-service in the retail network of LLC Lenta:open express cash offices for buyers who have no more than 2-3 products to calculate;install automatic cash desks operating without cashiers;offer a packer service,as many visitors delay queues,packing purchases at the checkout site.The theoretical significance of the research lies in the development of a business model of the self-service process in online retail.This business model will help to implement the self-service process in other trade enterprises of this retail network,as well as to analyze and evaluate this process.The practical significance of the study lies in the fact that its results can be used in the actual practice of the organization to develop a strategy for the development of self-service and its evaluation.The business model of the self-service process in retail will allow a comparative analysis of the development of self-service at the level of organizations and stores.
Keywords/Search Tags:retail network, business process, self-service, efficiency
PDF Full Text Request
Related items