Synopsis
- Client faced unusually high rates of customers not picking up Click & Collect orders.
- Leveraging LEAN DMAIC workshops and data insights from process mining, the cause of the high non-pickup rates was identified.
- The project team provided insights and analysis and developed a dashboard to support continuous monitoring during implementation of remedial actions.
- Reduced the non pick-up rate from 5.6% to 2.5% over the course of a year, leading to a $2.8 million increase in sales and $73k saved in employee costs.
Article
In the dynamic realm of retail, the Click & Collect service model stands as a testament to the industry's adaptation to consumer preferences, merging the convenience of online shopping with the immediacy of in-store pickup. However, even the most customer-centric services can encounter operational hurdles. Such was the case when our team at BP3 embarked on an exploratory journey with our client to dissect and enhance their Click & Collect process, particularly within the markets of the UK and Ireland. Here, we encountered a perplexing challenge: an unusually high rate of customers not picking up their orders, a phenomenon that not only impacted revenue but also customer satisfaction and operational efficiency.
To unravel this complex issue, we turned to the power of process mining, utilizing Celonis to delve deep into the client's Click & Collect process. This sophisticated analytical approach enabled us to uncover and quantify the extent of the problem. Armed with this data, the next logical step involved a collaborative effort with Subject Matter Experts (SMEs) to pinpoint the root causes. This phase was critical, as it required not just identifying the symptoms of the issue but understanding the underlying factors contributing to it.
Leveraging the principles of LEAN and the DMAIC (Define, Measure, Analyze, Improve, Control) methodology, we initiated a series of workshops aimed at dissecting the problem and formulating a coherent action plan. The insights garnered from Celonis were instrumental in this phase, providing a data-driven foundation for our strategic interventions. Our goal was ambitious yet clear: to halve the failure rate of order pickups from 5.6% to a more acceptable 2.5%. To ensure the effectiveness of our efforts and to provide a mechanism for continuous performance monitoring, we developed a comprehensive dashboard. This tool was designed to track Key Performance Indicators (KPIs) meticulously during the implementation phase, enabling real-time adjustments and ensuring alignment with our objectives.
The outcomes of this concerted effort were nothing short of remarkable. Over the course of a year, our client not only met but achieved the ambitious target we had set, reducing the non-pickup rate to the targeted 2.5%. This significant improvement had a direct and positive impact on the bottom line, leading to a $2.8 million increase in sales. Moreover, the efficiency gains from reducing the need to return uncollected orders to stock saved the client an additional $73k in employee costs. Beyond these financial metrics, the project had a profound effect on customer satisfaction for the Click & Collect service, which saw a boost of 18 points. This improvement underscores the importance of not just meeting but exceeding customer expectations, a principle at the heart of BP3's mission to drive transformation through innovation.
This project exemplifies BP3's commitment to leveraging cutting-edge tools and methodologies to address complex business challenges. By embracing a data-driven approach and fostering collaboration across disciplines, we were able to deliver a solution that not only resolved an operational inefficiency but also enhanced customer satisfaction and contributed to significant financial gains. It is a testament to our belief in the power of strategic transformation and our ability to lead businesses through the journey of continuous improvement.