Question

Specify the work process for a small bookstore.

Suggest two actions that a manager can take in order to improve the work process in question

Provide a rationale for your response

Answer 1

Some of the work processes for running a bookstore include :

1. Procurement of stock : One of the key activities is procurement of books, study materials in a timely fashion to avoid stock-outs and loss of customers. This process would involve maintaining proper relations with the vendors of the bookstore and having a backup vendor in addition to the main vendor, so that same can be approached when stock is not available with main vendor. Further, attention to be paid and advance purchase planning to be made for seasonal spurts of demand such as at the start of schools / universities session.

2. Inventory management : Another related process is inventory management. We do not want stock-outs and at the same time, we do not want excessive capital stuck up in inventory which could be used in expansion. This step would require maintenance of proper inventory records at all times and responsible personnel to place order as soon as minimum quantity is reached. Further, excess inventory of low-selling books should also be monitored regularly for returns to vendor / sales at discounted price, etc. in order to free up capital.

3. Layout designing : In a bookstore, more than any other business, layout is of utmost importance. Books, CDs, magazines, other study material should be all segregated in proper shelves and orderly fashion. Further, division into course books subject-wise, novels, fiction and non-fiction, almost like a library is necessary, since customers don't have the patience to search for long periods of time in an unorganised store, and not all would ask the assistants / sales persons.

4. Personnel management : Sales staff and counter staff to be managed effectively in the sense that they try to extract maximum sales by assisting and advising customers, and aim for customer delight so that they becomes repeat customers.

5. Accounting & Finance : This process involves maintenance of proper sales records, issue of proper invoices, defining returns/exchange policy, preparation and maintenance of accounting records and evaluation of performance from time to time. A key responsibility is the custody of cash sales revenue and the accounts function should be assigned to responsible staff.

6. Sales & Promotions : After all, a business is in business to sell and earn.Sales is the most important function in any business. Regular sales and time-to-time promotional activities like organising book events or discounted prices to boost up sales in slack period is one of the processes.

7. Customer Service and support : In order to have a set of regular customers, we need to provide service and not just sell. That enhances the relation beyond a one-time sale to a regular customer of the business.

Some of the actions that can be taken to improve the work processes as defined above include:

1. Customer delight : Bookstores are aplenty in any city, any locality. But, we need to create a difference to make the customers come back to us again and again. To delight customers, we would have to offer something extra for free, like may be, order on call and door-delivery within a certain area or at a nominal delivery charge, discount coupons applicable on next purchase, or having an additional facility like a tea/coffee shop for booklovers, if possible.

2. Promotional activities : In order to remain in the current memory of customers and not to be gone and forgotten after sales, the bookstore may plan and schedule some low-cost events at regular basis such as book reading, small art competitions, etc. specially on festive occasions. Festivals is generally the time when customers indulge in impulsive buying the most.

3. Online sales : Since the bookstore in question is a small one, we assume there is not plenty of space to stock up everything. In such a case, to increase sales, the bookstore may tie up with online portals like ebay, amazon and sell online.