Change: Macy\'s Inc. The Board of Directors

¶ … Change: Macy's Inc.

The Board of Directors Macy's Inc.

Re: Report for recommendations

Team Leader

Change Management Macy's Inc.

The usage of technology as a source of expediting business processes, reducing cost, and shortening lead time to market products is widely appreciated in the business world. It is also observed that technology offers various solutions to a business process in order to achieve its desired results. The organizations also compete on the basis of their competitiveness and increase productivity after deployment of innovative technology solutions. The business productivity and employee performance enhancement through various technological solutions can only be achieved through a detailed scenario investigation and deriving a solution that is technically and operationally viable.

The business solution proposed for the organization includes implementing technology oriented solution to reduce their operational cost and increase products availability. The business is a retail stores chain with various branches across the country. The storage of stocks and replacement of inventory is handled currently in a traditional manner. The stocks are maintained at various strategic locations in order to facilitate the replacement upon requirements. The logistics and labour department coordinates with the branch managers to order and receive the required quantities of various inventory items. It not only causes increased time for shipment but at times various inventory items are also found to be short from their shelves. The management has dedicated a team of business and IT professionals to resolve the issues based on their recommendations. It is also noted that the business would like to spend minimum amount of capital investment in order to maintain their profitability in accordance with the current economic conditions.

The methodology used in preparing the report is based on the qualitative research techniques. It includes the interviews from organizational employees and developing on understating of the issues raised through these interactions. The analysis of findings and results provides a solid foundation for formulating the assessment results into significant recommendations for business growth. The business should also note that the competitors of the organization are widely reliant on the technology and innovations in supply chain management solutions. Following recommendations

Transformation of traditional inventory management system to vendor managed inventory.

Use of Inventory management system for sticks that cannot be replaced by the suppliers.

The training and appraisal system for employees.

The business should adopt RFIDs to trace stocks and as result the operating cost and time will be reduced.

The cost of implementing the recommendations is calculated as $50,000. The details of the cost are provided in the section below.

Introduction:

The report is prepared to provide specific information with respect to the problems faced by Macy's. The method used to investigate the problem is also defined in the relevant section. The findings of the research are analysed to understand the impact and draw conclusions based on the provided information. The analysis provides a basis for concluding and recommending the usage of technology in order to resolve currently faced issues. The report provides a detailed understanding of the issue faced by the organization, leading towards providing a recommended solution based on the experience and expertise of the dedicated professional team in following sections.

Change Management Team:

The change management team consists of two businesses and an IT executive. The corporate manager for e-business is designated as the head of change management team. The business executives are responsible for research and presenting the results of their findings. The results of research are discussed with the IT executive and based on the results a comprehensive set of recommendations is prepared for presentation in the meeting to board of directors. The recommendations should also accompany financial requirements for implementing the change. The team is also responsible for carrying out the necessary actions after the approval of higher management.

Problem statement:

The Macy's retails store is facing a challenge in terms of their operating cost and availability of products throughout their network of stores. The competitiveness of their business operations in compromised as the competitors are providing a batter service through their network and as a result the business is tending to lose their customer base. The accuracy in logistics and inventory management through traditional operations is not only expensive but as a result it also minimizes the profitability of the business. The latest trends in retail industry including online shopping facilities are also a major cause of declining business performance. Economic conditions of the country do not allow the business to invest a hefty amount in developing strategic warehouses for keeping inventory in additional places. The cost of inventory is also a business expenditure that involves upfront capital investment.

Methodology:

The methodology used to investigate the scenario defined should be comprehensive in order to provide required information for the business and IT professionals to understand the underlying issues. The team comprising of various specialized professionals has concluded to undertake a thorough research for identifying key issues and proposing relevant solutions. The team has chosen a methodology that is based on qualitative research principles. The team has designed a structured interview from warehouse, logistics, and retail branch managers. The qualitative interview will provide insight of issues and drawbacks in the operational procedures. The team will also analyse the interview findings and based on these finding concrete recommendations will be prepared to facilitate the solution.

The qualitative research methodology enables the researchers to investigate the underlying factors that influence certain issues. The research methodology adopted in the current study is also in line with the selection of interview as a tool to seek information. It is also noted that the review of quality business and technology journals, academic books, and other materials will also facilitate in formulation of recommendations for eliminating the issues. The interviewers will inform and seek appointments to conduct the planned meeting with respective employees of the organization. The interviews conducted with the staff members of the business will enable in gaining insight, review of literature, and professional knowledge will also provide the foundation for formulating qualitative recommendations for increasing business performance.