Tanda Blog: Clients & Partners AU

Clients & Partners AU

Domino’s Israel and Tanda partner with Howazit to drive scheduling efficiencies

Tel Aviv, Israel – Tanda is excited to announce that Domino’s Israel, in partnership with proactive customer care platform, Howazit and Tanda, has recently gone live with a shift rating integration that provides daily insights to managers.  The shift rating integration uses customer feedback from the Howazit platform to provide delivery drivers with an aggregated […]

How Pennwood Aged Care reduced payroll admin by over 60%

“Quality care with European flair,” sets Pennwood Aged Care apart from the rest of the South Australian Aged Care Industry. They provide personalised multilingual care services for a variety of Eastern European backgrounds.  The backbone of any successful operation is effective workforce management, and for processes to be efficient, you need to find the right […]

The Cafe Collective: Supercharging Tanda, Kounta & Xero with cross-platform reporting

Technology is only as good as how it’s implemented. When you have several platforms in place, it can pose a challenge when it comes to consolidating data and insights that they generate. And this can be counterproductive for reporting and critical decision-making.  The Cafe Collective, a fast-growing Aussie business, faced that challenge. They use Tanda, […]

How Care Agency slashed their onboarding time by 94%

Handling more than a hundred employees and keeping them happy and satisfied isn’t a walk in the park. It’s one thing to manage who you hold throughout the year. It’s a whole other challenge entirely to go through an extensive hiring and orientation process when you coordinate with some of the largest healthcare organisations in […]

AHA Clinics’ Right Dose to Streamlining Workforce Management

“To provide the type of healthcare our community deserves.” This is what Australia Health Alliance (AHA) promises to deliver since they opened their first clinic, the AHA Seaford Day and Night Clinic, in 1979. In 2015, they expanded and opened a new clinic, The AHA Seaford Meadows Day and Night Clinic. Every day, the clinics’ […]

5 Women Making a Difference in Business and Technology

A day of recognition for women all over the world, International Women’s Day is happening this Sunday, March 8. To mark this year’s celebration, we spoke to six women across the globe and asked them to share their moments of success in their respective fields, as well as what advice they’d like to give women […]

Spreadsheets to software: How Hoxton MPM focused more on clientele by rostering less

“We help busy doctors manage thriving practices.” When you visit Hoxton Medical Practice Management (MPM)’s website, that’s the first slogan you’ll see. A company focused on relieving pressures off of practitioners’ minds, this company based in Hampton East, VIC, Australia offers expertise ranging from virtual reception services down to medical billing support. But with several […]

Everything’s coming up Roses Only: How Tanda helps retailers save 100+ hours a week

Valentine’s Day: On this day celebrating love and relationships, couples, friends, and family prepare their choice of gifts for the special people in their lives. Hearts adorn storefronts, packages and discounts abound, and behind the bustle and celebration are the retailers that make it all happen.  Today is one of the busiest days of the […]

From the ground up: The Print Bar’s success through digitisation

One of Australia’s most innovative garment printing companies today started small—very small. In 2011, Jared Fullinfaw was selling t-shirts printed with his designs out of his mother’s garage to make ends meet. One thing led to another, and now he operates The Print Bar, a multi-awarded e-commerce startup employing 17 staff based in a creative […]

Schnitz Balaclava’s Perfect Ingredient in Rostering

Jas Sidhu is a firm believer in franchise businesses. When he was looking to purchase one, Schnitz caught his attention. “I look at many franchise businesses, and I always keep coming back to Schnitz because I love the product. It’s all freshly made. It’s cooked to order. The chips are fantastic.” Today, Jas owns Schnitz […]

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How this retailer increased profit by $8.9m from rostering more hours

There has been a lot of speculation on why we are losing retailers so fast. An interesting research piece from the US presented an alternative hypothesis that generalises the issue down to rostering for profit rather than rostering to control costs. For context – If you were given the choice of increasing revenue by 5% or reducing costs by 5% in order to create the most profitable outcome, what would choose? A “back of the hand” calculation would show that reducing costs increases profit more than the equivalent uptick in revenue. Accordingly, most retailers choose option two. This makes sense if you assume the two scenarios are independent of each other, but what if the cost was your employees? This is where the problems arise. For industries like retail, where staff have a direct impact on sales, it’s not as simple of a question as cutting costs to increase profit. In a study led by Professor Marshall Fisher from Wharton, he and his research team constructed a conceptual model from historical data to identify stores within a US-based retail chain that had the highest potential to benefit from increased labour spend. Importantly, the strategy was actually implemented at 168 retail sites over a 26-week period to validate the model, with the retailer electing to implement the strategy further. The result: A near $8.9 million increase in profit of the stores included. The labour cost challenge The challenge in allocating labour budgets lies in the tradeoff between the known immediate payroll cost and the less certain increase in sales that could be achieved with more staff on hand. The researchers point out that retail managers have a tendency to overweigh the decision to reduce the known payroll cost than the less certain increase in sales which could be achieved by allocating additional labour spend. The labour budget death spiral The study highlights the limitation of the most common retail strategy — setting labour budgets as a portion of sales. Fisher points out that this approach creates a circular problem by failing to take into account how store labour spend can positively impact sales, with the worst case leading to a spiraling effect of reduced sales forecasts reducing labour spend which reduces sales further and so on. Quantifying the impact of labour spend on revenue Creating labour budgets that are designed to maximise profit requires retailers to know on a store-by-store basis the correlation between labour-spend and sales. One way to do this is by looking at times when staffing levels deviate from the original schedule. If ten staff were scheduled on a particular day, but on that day only eight turned up, did sales also decrease by the same portion? If not, by how much? If the answer to the above is that sales didn’t decrease at all, the store is likely overstaffed. If there is a measurable impact, the inverse scenario is likely true and the store may be losing sales by being understaffed. This is the same approach used in the study, which found the relationship between random staffing deviations and impacts on sales was statistically significant. Results showed an increase in labour spend pointed to increased sales at varying degrees, depending on known store attributes. Implementing the strategy for profit The study identified stores in a US retail chain which had the highest market potential, making them good candidates for an increased labour spend. The market potential factored in attributes like average basket value and proximity to competitors, which would create scenarios that allow workers to have the highest impact on converting sales. In the study, 168 stores were selected this way, then allocated a 10% increased labour budget over a 26-week period, of which 75% of the increase was actually consumed in practice by the stores. The outcome was a 4.5% increase in revenue at the impacted stores and resulting in a near $8.9 million profit increase. Learning from the strategy The study shows empirically why the common practice of setting labour budgets as a fixed proportion of forecasted revenue is often self-defeating when applied in a retail setting. An opportunity exists to all retailers to leverage this same profit-centric model for defining labour budgets. The data required is available to all retailers however, it may just be a matter of leveraging that information with the right systems. An integrated forecasting strategy that integrates foot traffic, sales, and employee scheduling data is a practical opportunity afforded to retailers of any size to optimise their labour resource allocations. The interesting part is, Fisher’s research is readily available to all retailers who are looking to drift away from the traditional method of fixing labour budget rosters. The next step is to get this method of labour resource allocation battle-tested in the Australian markets. Stay tuned. Up next: What is the Contingent Workforce and how can you leverage it in your business?

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