Building better workflows keeps a business competitive and profitable. But how do you make sure that progress doesn't stagnate? ⏱️ Today's edition of The Backorder is all about keeping tools sharp with optimised processes. In this week's issue:
- UK retail giant predicts Brits will be eating bugs by 2054
- 5 continuous improvement strategies for optimising your processes
- Insights from the President of a mail-order shoe-repair business
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In supply chain headlines:
- New report suggests global trade is finally on the rebound. The growth is partly coming from an uptick in demand across the global manufacturing sector – but according to Tradeshift's Q1 Index of Global Health Trade, it's not all good news for suppliers.
- Climate-related supply disruptions look set to continue. Consulting firm Kearney's 2024 State of Logistics report warns that sea level rise and inland flooding could cost the logistics industry billions annually by 2050.
- Co-op predicts the UK will be eating cricket salads by 2054. Yep, that's right. Crickets. The leggy insects are one of the retail chain's many British dietary predictions for the next 30 years – along with locusts, grasshoppers, and lab-grown steaks, writes Retail Gazette.
Mini-quiz: How well do you know procurement?
1. Which of the following is not part of the procurement process?
a) Vendor sourcing
b) Needs identification
c) Order fulfilment
d) Invoice approval
2. Which of the following purchases would be classified as 'indirect' procurement?
a) Raw materials
b) Packaging
c) Components
d) Products
3. P2P stands for ______?
a) Procure to pay
b) Procure to purchase
c) Pay to purchase
d) Purchase to payment
(Scroll down to reveal the solutions)
Continuous improvement: 5 strategies to level up your processes
Striving for perfection is the key to sustainable success. The following strategies for continuous improvement pertain mostly to business growth – but if you take off your employee hat for a second, you might find they hold lessons for personal development as well.
- Kaizen. Inspired by a Japanese word that means “change for the better”, Kaizen is about making small improvements that over time create notable results. It ensures that errors or issues are identified early so they can be resolved before a process continues forward.
- Six Sigma. The Six Sigma concept focuses on measuring and improving workflows using a statistical benchmark. It uses data as a type of quality control to eliminate defects, reduce the number of variations in your end products, and improve process efficiency.
- Lean thinking. Based on the lean manufacturing operational model invented by Toyota in the 1950s that seeks to eliminate seven types of waste, lean thinking refers to a series of principles and practices designed to increase the efficiency and quality of any work undertaken by a business.
- Total quality management (TQM). TQM aims to achieve long-term success through customer satisfaction whereby all members of a company are involved in improving processes, products, services, and team culture.
- Supplier relationship management (SRM). Effective management of external suppliers is an ongoing effort to improve reliability, efficiency, and transparency in the supply chain. It involves monitoring supplier performance, identifying areas that need improvement, and setting goals and objectives that your suppliers must meet.
From shoebox to mailbox – meet Eric Neuner
Eric Neuner is the Founder and President of NuShoe Inc., an online mail-order shoe-repair company based in San Diego, California. Since 1994, Eric and his team at NuShoe have repaired over 5,000,000 pairs of shoes by hand. We spoke to Eric to find out what goes into running a successful business for 30+ years. Here's what he had to say.
What inspired you to start your own shoe repair business?
"The inspiration came from an internship I had in 1993 at a family-owned shoe repair business, where I saw the potential to elevate the shoe repair industry with higher-quality craftsmanship and customer service."
What's the secret behind your 30+ years of success?
"Our mission is to provide the highest quality craftsmanship and best customer service every day. Our commitment extends beyond simple repairs; we offer quality correction work and returns processing for brands, making us an integral service provider in the U.S. shoe industry. [We work] closely with well-known brands to provide exclusive refurbishment services."
What have been your biggest challenges at NuShoe Inc.?
"Managing an increasing volume of returns and scaling our quality correction services to meet the demands of millions of pairs of shoes each year has been challenging. We've also had to adapt to supply chain disruptions that required innovative problem-solving."
How have you kept the business afloat during the recent bouts of global supply chain instability?
"Enhancing our quality control measures and forming exclusive partnerships with renowned shoe brands has been pivotal. We've also invested in specialised equipment for tasks like mould remediation and sole delamination, ensuring we can meet diverse needs efficiently."
Could you share some of your most valuable business advice?
"Focus on customer feedback and constantly seek improvements in your service offerings. Consistency in operations can significantly improve quality and customer satisfaction. Also, sustainability should be a core part of your business model – resoling and repairing shoes not only helps the environment but also builds customer loyalty."
Are there any books or podcasts you'd like to recommend?
"The E-Myth Revisited by Michael E. Gerber has been influential in understanding how to transform a small business into a well-organised entity. The How I Built This podcast also provides valuable insights from other entrepreneurs."
Mini-quiz solutions
1. c) Order fulfilment
2. b) Packaging
3. a) Procure to pay
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