A few "Lean Ideas" from Matt Murphy
Matthew Murphy, from the Franklin Local Board, has run and managed a number of very large and successful companies over the years and has quite an astute head for business.
Below he lists a few ideas to help support local businesses during this time.
a few “lean” ideas from Matt Murphy
- Don’t discount product, increase service levels, ie: reply to inquiries fast and with detail, answer the phone. The little things will impress your customers.
- Call your clients, we all have regular clients, get in touch with them. They want to hear from you.
- Remember clients want to buy. If you get someone in your store, emails or calls you, they have made an effort to buy your product. They parked the car and walked into your shop, or they looked for your number and dialled it. They want to buy, you are the only reason they don’t now.
- Don’t ask “can I help you”. Don’t give the client an opportunity to say NO. Ask, “are you enjoying the good weather” etc
- This is a fantastic time for businesses to clean and organise workspaces and inventory. Look up the 5S principles. It’s a great time for new processes and system that reduce waste and increase profit. When I say “waste” I am referring to waste of, time, movement and inventory.
- Do a “value stream map” for your business. Pick a product and document it from order to sale. What are the steps and double handing that aren’t adding value? Your customer will only pay when you add value.
- Reduce inventory, manufacture and stock products in a pull system rather than a push system. In other words, manufacture products to order, not for stock. For retail, don’t stock products that are slow movers or low margin. Slow movers need to be turned into cash flow and that space filled with fast-moving high margin items.
Lean Principles will increase the profit margins of every business., I have studied lean and implemented it into many companies over the years.
The companies and people that can adapt the best in this downturn will survive. There could be push back from some staff, and people don’t like change. Unfortunately, change is what will save your business.
I have a saying I use to use a lot for these situations. “Change the people or change the people”
Every local business needs to read this list and take action were needed asap.