Strategic Operations Issues

STRATEGIC trading operations ISSUES Elizabeth Kelly ABSTRACT This paper identifies an operational agency out of a national food-chain. The task is set with the demonstration of the functional relationships and affect diminish analysis. With the utilisation of concepts of operations and exercise management, the problem is analyzed and methods sought to provide recommendations and an death penalty plan. TABLE OF CONTENTS Background of Hi-Lo solid food Stores.. 5 Problem Identification. 5 Background of the LINX Operating System6 Analysis using Concepts7Recommendation and Implementation final cause.. 9 References.. 11 BACKGROUND OF HI-LO victuals STORES Hi-Lo diet Stores is a supermarket chain operational(a) in Trinidad since 1950. With 17 outlets spread end-to-end the length and breadth of the country, Hi-Lo Food Stores employs everyplace 1800 employees. PROBLEM IDENTIFICATION At Hi-Lo Food Stores, which is considered a mass helping bear on type (Slack et al, pg. 114) nodes are afforded the option of variant recompense methods. Payment methods include capital, quote baits and account cards.In an effort to conduct to provide better options for settling of earningss to merchants and guests alike, the family Infolink was formed. Infolink is a joint venture c everyer-up owned by the four commercial-grade-grade cambers of Trinidad and Tobago whose focus is to provide state of the dodge financial transaction-switching technology by direction of calculate card pay. In new-made clock, it has been observed that on peak commercial periods, Hi-Lo Food Stores destructions allow not been able to process debit entry entry card wagess. The marrow No Communication Field is gene computed when debit card legal proceeding slewnot be processed.The client is either forced to use a deferred payment card or use cash. The nature of the business of Hi-Lo Food Stores would in some instances cause for a hulky sum of money at the check-out te rminal. Customers, who do not bedevil a credit card speediness available, are therefore forced to leave their merchandise at the store and locate an change Banking work (ABM) to withdraw cash and then(prenominal)(prenominal) bring forth to the store to complete the transaction. Hi-Lo Food Stores is then faced with the issue of storing in a secure manner those items selected and already bagged for the future node and sewer exclusively be delivered until payment is tendered.This then causes a fund issue since these items are usually rigid at the terminal the customer was accommodated at. Sub-issues of pilfering and bottlenecking of check-out counters have to a fault been evident. The second issue arises when the customer does not collapse for reasons such as, no ABM eagerness within ramble of Hi-Lo, and then causes the customer to leave to a more convenient supermarket. This leaves Hi-Lo with spoiling and re-stocking of the items already held at the terminals. Custo mer dissatisfaction sets in and an wear of brand loyalty occurs.The impact on Hi-Lo Food Stores tramp then be summarized to include increased check-out judgment of convictions at terminals, customer dissatisfaction and decreased sales. BACKGROUND OF THE LINX operational SYSTEM In 1992 saw the sexual climax of the LINX shopping experience to Trinidad and Tobago. Infolink Services expressage is the facilitator of the LINX Network where debit cards from each commercial bank in Trinidad and Tobago would be processed at all Automated Banking Machines (ABMs) regardless of the commercial bank the customer so be commodioused.This governance led the way for merchants to employ the LINX Network at their point-of-sale terminals and so allowing debit cards issued at any commercial bank in Infolinks Accredited Partners to be pass judgment at these participating merchants. While the LINX agreement proved seamless during its pilot run across phase of operations, in recent times as the work became more wide accepted by the general public, LINX seemed to be unable to manage the demand of merchants. establish has not been offered on the number of proceeding over a organize period, in order to ascertain the workload strength of the Infolink Services Limiteds frame.As the pedigree has evidenced at Hi-Lo Food Stores, the debit card payment system seemed unable to handle the workload during peak periods of demand. analytic thinking USING CONCEPTS The use of technology to put back traditional methods of payment can be seen to deliver great advantages and benefits to Hi-Lo Food Stores. The process design of the debit card system in its conception can be seen to provide great advantages to the mass service process type. This payment method can be seen as an internally accessory method of increasing operations capabilities.For example, in times prior to the LINX operations, Hi-Lo Food Stores terminal touch time was generally a monthlong process. This could have been caused by the customer having to present a somebodyal check over for payment along with a draw fix card, if applicable. The second step would be for the cashier to examine both card and cheque for validity. In instances where the cheque was write in excess of the card guarantee amount, a supervisor would then be referred to for authorization.A process that would guarantee a longer turnaround time than the now astray used LINX service, debit card payment option. In analysis of the process however, we essential measure the impact of the unreliability of the service and how it causes delays and decreased outputs. These delays then impact on the cycle time at cheque counters. In carrying out a process analysis, it is obvious that the LINX operating system has a process capacity which has not further been conditiond. In identifying the systems capacity, resources whitethorn be input into the process for alter reliability and cognitive operation.As can be seen the debit ca rd payment system when efficacious can have a imperative strategic impact on operations performance objectives. By firstly, impacting on the festinate by which customers is processed at check-out terminals. When you have a quick turnover time you reduce the handicraft and congestion in the supermarket which can result in time out and accidents. Secondly, the LINX system has impacted on tractability by allowing the customer the option of choosing a more direct form of payment as opposed to credit cards.Dependability can be seen as a performance objective where the system can be relied upon. The above performance objectives, speed, flexibility and reliableness have been negatively impacted on as the debit card system has become unreliable during peak operating times as such the issues Hi-Lo has undergo relates to its inefficiency of its customer experience, its quality of service is risked, thus losing the trust and loyalty of some customers. RECOMMENDATIONS AND slaying PLANIt is the writers recommendation that an ready sourcing of an Automated Banking Machine (ABM) be allocated to all branches. This ABM facility leave demote the customer the ability to exact cash to the check-out terminal without leaving the premises. The ABM facility will have the effect of step on it up turnaround time at terminals for payment. The added advantage of the facility not solely being available to check-out customers but the facility will encourage more traffic with customers who may need just the contraption of an ABM facility.The ABM facility will be strategically placed in an area just after the bank of check out tellers, but out from the main entrance point. This would force the person who came for the convenience of the ABM facility only to line up, surrounded by flyspeck convenient items that may encourage purchasing of candy, gum, magazines etc. In the hopes of a long term resolution, Hi-Lo Food Stores conduct a process design-analysis. This analysis will det ermine the doneput time and impact upon the flow rate of customers by measuring the number of palmy or unsuccessful attempts using the debit card system.In conducting this analysis, list the customers alternate payment method used and whether immediate payment was affected. The system of process mapping can assess the processes for example, Hi-Lo Food stores must also account for those customers who are inconvenienced by having to figure an ABM to use cash as a payment method. List those persons who in fact will follow through and complete the transactions as against those persons who unwrap it far too inconvenient to return to Hi-Lo.With the use of this data, Hi-Lo food stores will then be able to account for workforce used at the terminal for processing a void transaction, storage of items, spoilage of perishable items which may occur and hours of concern time spent re-stocking. Finally, Hi-Lo in confederacy with Infolink needs to formalize a structured plan of action to im plement a larger capacity for processing of debit card transactions, and for Hi-Lo to ascertain its feasibility. ACTIVITY clip OWNERSHIP/RESPONSIBILITY 1. 1 reservoir a consultant 2 calendar weeks IT segment 2. 1 diagnose number of transactions incomplete 6 weeks IT Department 2. Identify time periods for down time 6 weeks IT Department 3. 1 Identify source of problem 1 week consultant 4. 1 Make recommendations 2 weeks advisor 5. 1 Implement changes and examen 6 weeks IT Department 6. 1 Gather feedback from customer 2 weeks Marketing Department 7. 1 Make further recommendations 1 week Consultant 8. 1 Implement and test 3 weeks IT Department REFERENCES Slack, N & Chambers, S & Johnston, R & Betts, A 2009, Operations and deal Management, Principles and Practice for Strategic Impact, 2nd edn