Staffing Company Business Plan Template
It is important that customers find what they are looking for quickly and easily. In this, the orientation is on Great Britain, where the e-commerce share already constitutes 2. If customers have queries or complaints, they can contact the LeShop Call Center. Our range extends from market monitoring and analysis to the development of market strategies and their implementation through appropriate business concepts , right through to providing support for the operational business, including the development of computer-based models for analysis.
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In the analysis, three customer groups are identified: Additionally, various other distinctions are made, e. Derived from this analysis, the customers receive a moderate amount of personalised e-mails [personalization] , the content of which is adjusted to them and which can contain a targeted promotion. An online shopping session can also have an insert of a personalised promotion. Offline, Migros Cumulus letters can contain personalised special offers for LeShop customers.
When a purchase is made within three weeks of the previous one, and exceeds a certain threshold, the customer is rewarded with the lowest possible delivery charge. Provided customers participate in the Migros customer loyalty programme Cumulus, they also receive cumulus points for their purchase of Migros products at LeShop.
Particularly good customers occasionally receive a gift or invitations to special events. The success of the customer retention measures is shown in the fact that more than 35, Swiss households do their main shopping between once and several times a month at LeShop. Cooperation with suppliers LeShop is proud of its relationships with suppliers [ relationships with suppliers ]. These are established with a view to the long-term and included in the continual improvement process.
LeShop had to develop new performance characteristics and processes, which would have been impossible without constructive teamwork with their suppliers. One tries to achieve progress not by putting suppliers under pressure but by including them in the project. The internal fact orientation is extended to the suppliers.
In this way, LeShop could even make a difference in such a large company like Swiss Post. This is how suppliers are transformed with LeShop; a large post service in exactly the same way as the butcher and baker from Weingarten, for whom LeShop has become the most important customer. The principle is give and take.
LeShop gives its suppliers, for example access to a part of the anonymised data so that they receive direct information from the market. Expansion of the range to include own-brand frozen products The decision to include own-brand frozen products in the range first came up when a solution was found how LeShop could deal with the additional demands for the development of this solution see chapter 4.
In its centre there is a separate transport box with dry ice, so that the cold chain can be maintained uninterrupted right to the customer. The freezer box is filled on a made-to-order basis in a separate deep-freeze storage warehouse, provided with final shipment labels and located with other transport containers in a cross docking process.
Display of dynamic transport cost depending on the fill level of the freezer box There are considerable additional costs associated with deep-freeze logistics. One of the reasons is the price of the freezer box itself, for which a deposit of 30 Swiss Francs 20 Euros is charged for each order.
This correspondingly requires stock management and accounting logistics. Another reason is the additional logistic effort; for an order of a single package of ice cream these costs would be out of proportion with the value of the good itself.
This is why LeShop makes the logistics costs for a box clear and charges the customer an additional 10 Swiss Francs 6. If, on the other hand, the customer orders enough frozen products to fill the box, the additional costs are reduced in steps along the fill level to zero empty.
This correlation is shown in a dynamic display under the shopping basket symbol for the customer during the ordering process see Figure 2. Process View The business scenario Figure 1 gives an overview of the most important processes at LeShop. Figure 3 details the process of the assembly of partial orders in the stock zones of the logistics centres [assembly].
The process of assembling the partial orders The complete orders were previously split into part orders per stock zone.
The employees in the stock room assemble their orders led by the warehouse management system. Necessary data is displayed on their mobile handheld appliance, which is also equipped with a barcode scanner.
At the commissioning, the actual articles taken are registered. If it is an article where the weight can vary, e. During the process, the time of each individual operation made by the employee is also recorded. This data is the basis for the later valuation of performance. Figure 4 shows an overview of the applications implemented and their task distribution. Within the kernel system developed in Java, LeShop distinguishes three large programme sections: They are integrated and work with the same data.
The users can access them with a Web browser. Alongside, a series of standard software systems and tools for special application areas are in use, e. IT interfaces exist for the external service providers and transport services displayed in Figure 1.
As the own-brand frozen products were introduced, the assembly of the frozen orders for the Bremgarten logistics centre were transferred to a Migros site. The coordination with this site, as usual, should be carried out with automated electronic data interchange EDI. There was already a connection there in the framework of the orders of Migros products in LeShop. Because LeShop required an array of specific features for its frozen product range, e.
For this reason it was decided to connect directly to the warehouse management system XELOG, which this company worked with. For the information interchange the required message types were individually defined in an XML format.
The most important message types are:. Overview of the most important software applications at LeShop Technical View Figure 5 shows the allocation of the systems to the sites as well as networks used for the integration.
LeShop has outsourced the operation of the networks and the central production systems to the IT provider Migros IT Services, because they can provide a high performance and fail-safe operation cheaper than LeShop themselves. Nevertheless, the back-end system stands ready in both logistics centres, should there be a network interruption or similar, so that the business can continue to function.
In the eleven years that LeShop has been in business, many e-commerce companies have been founded and many had to give up. The way in which LeShop approaches projects and solves problems could well be one of its success factors.
Investment Decision Over the course of years, some ten million Swiss Francs have been invested in LeShop; the exact figure has not been made public. The management emphasises, however, that the sum of investment is much smaller than in comparable companies in the USA and in Great Britain. LeShop has always had to be cautious with capital. The idea was initially implemented on a comparably small scale — with 1, dry products — and then successively expanded and optimised. On the stock market, one might have to tell other stories which are not always well-founded.
It is indisputable that LeShop needed much more money for the development of expertise and infrastructure than they had had available at the start. Not every idea turned out to be right and sometimes a project had to be abandoned, e. However, luck was on their side when they needed to come up with yet more capital at the last minute. The way was paved towards growth and at the same time a second logistics centre was opened. Because of experience gained, human flexibility was more highly valued than rigid structure investment: This is on the one hand surprising because this is not a typical concern for the finance department.
On the other hand, it is characteristic of LeShop because every member of the four person directorship feels responsible for the company as a whole and also contributes to other departments, if one has new ideas or if in times of need. The starting point was the first approaches on how the great logistical challenges could be solved. With Excel the project was calculated through, in doing so a timeframe of three years was applied and the estimates tended towards the conservative.
LeShop always begins with the simplest scenario in these situations, in this case with a high degree of outsourcing [solution scenario]. But these calculations did not add up.
Other scenarios were therefore developed, market targeting was undertaken with partners and partial solutions were devised, until a concept with an appropriate ratio of profit, costs and risks was found: This is how it is possible for frozen products to be delivered alongside other products in one LeShop delivery. Project Management and Change Management Once the concept was found, it was quickly and decisively implemented. The development is observed using the same KPIs as in other goods ranges.
The only additional measured value is the filling degree of the freezer boxes. Choice of Partner The frozen range brings along with it the need for at least a deep-freeze storage facility to be in operation and frozen products must be assembled.
A Migros group factory offered to take on this service at their site and to provide fully commissioned freezer boxes in a cross-docking procedure. In doing so, transport costs to the LeShop logistics centres are incurred. For one of the two centres, these costs are affordable because of the short distance, not, however, for the other.
It was therefore decided to build their own deep-freeze storage facility at the more distant site and to set up a new assembly process for frozen products. However, the supply in the cross-docking procedure is the same. Evaluation and Implementation of the Solution At the start of its business LeShop had originally wanted to keep the complexity of its activity small through extensive outsourcing and establishing of standard solutions.
This also affected logistics and informatics. In logistics, a strategic partnership with Swiss Post is in place.
Swiss Post together with partners carried out warehousing and commissioning of orders in the early years. The integration of the IT systems was also no easy task as, at the end of the s, these were not as yet designed for flexible cross-company cooperation. The appropriate balance between performance and cost could not be achieved in this configuration, so LeShop took over these functions themselves in and opened their first warehouse in Bremgarten.
In terms of business software they started with the system One-to-One from the then highly respected US supplier BroadVision. LeShop was a reference customer for BroadVision in Europe.
It was decided to collaborate and further develop the solution together. Accordingly, LeShop had complete access to the source code of the software. One-to-One was primarily front-end orientated, functionality for the e-commerce logistics was lacking. Virtually every element of the application was configurable, resulting in a huge level of complexity in adjustments.
Moreover, there were performance problems with the object-oriented application. LeShop quickly gained experience, which was reflected in clear specifications on the system functionality.
For example, for fruit, vegetables or meat the actual variable weight and also the price should be displayed on every order. The final value of an order then varied from the original value. The standard software did not allow for such details to be displayed. Adaptations and expansions turned out to be too complex and costly, not least because of the high demand on external consultants.
In order to be in a position to put their own demands more quickly and efficiently into effect, they began to replace One-to-One with their own developments in Java [ individual software]. Because One-to-One is compatible with Java, a gradual replacement was possible.
In a first step, the product search in the shop was replaced, next the shopping basket. Particularly in logistics, it had been attempted to bring in experienced external experts. These were, however, so set in their ways that they were not considered suitable for a newcomer like LeShop.
So, LeShop was forced to come up with the logistics for the e-commerce in the supermarket segment themselves. Ultimately the entire functionality of the software used today is self-defined and devised. In the development of software, LeShop is anxious to keep the systems simple and flexible.
The conceptual considerations are documented in a Wiki, the implementation is specified directly in code. The IT director has built up the LeShop system in its current form from the beginning on with his team. He knows it inside out and is, therefore, a key person. The introduction of own-brand frozen goods into the range was accompanied by numerous detailed specifications.
One of them is, firstly, the already mentioned logistics scenario with the separate commissioning, the freezer boxes and the cross-docking provision. The freezer box suitable for the LeShop infrastructure was developed and produced for LeShop. The deep-freeze storage facility had to be built in Ecublens and be equipped for the commissioning. Automatic electronic data interchange had to be set up and tested with the Migros operation which provides the logistics centre in Bremgarten with frozen goods.
Dry ice as a by-product has to be ordered and kept in stock. Because of its short shelf life, it has to be scheduled and re-ordered on a daily intake basis. The dry ice is in packaging which is exactly portioned and suitable for the layperson, it is furnished with appropriate safety instructions and manuals. As the freezer boxes are valuable, an inventory and deposit management for each customer had to be programmed. Ingoing and outgoing boxes have to be balanced in the invoices.
The cool bags also had a deposit on them, but because the value was low the external stock was not administered. The delivery process was different for the post service workers, depending on whether the freezer boxes are left with the customer or taken back.
The recording takes place over handheld appliances with barcode scanners — appliances owned and managed by Swiss Post. The software for these had to be adapted because the delivery person is instructed over the display about what needs to be done.
This software adaptation had to be coordinated with the post service and could only be achieved within the framework of a rotational release change. Mit vernünftigen Gehältern würde man Mitarbeiter motivieren und langfristig halten können. At Costco, we know that paying employees good wages makes good sense for business.
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Wer mit seinem Lohn kaum überleben kann, bringt auch wenig in Umlauf, was dem Handel und sonstigen Dienstleistern direkt schadet. Das Hauptproblem sei die mangelnde Kaufkraft der Massen:. The biggest problem for Main Street businesses is lack of customer demand. Corporate profits are at their highest since , as a percentage of national income, while the share going to employees is near its low point.
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Eine Erhöhung würde ihren Berechnungen zufolge eine Verbesserung des Lebens für Menschen im Niedriglohnsektor bedeuten, während die Kosten für die übrigen gesellschaftlichen Gruppen minimal wären.
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