Brief Contents

PART 1
OVERVIEW

PART 2
FLOW CHART

PART 3
INTRO TO LOWE'S

PART 4
CRITICAL COMPETITIVE FACTORS AND PRIORITIES OF THE OPERATIONS FUNCTIONS

MyLowe's Overview

Flow Chart

These are the store processes between helping customers and merchandizing to managing inventory, controlling expenses, and then turning a profit.

Intro to Lowe's

The purpose of this report is to research, analyze and review the operations management used by Lowe’s Home Improvement. This report will cover the major aspects of the company’s operations including the operations strategy, quality and performance of their operations, and operations systems. Also, this report will analyze Lowe’s operations and provide any recommendation that can improve quality and performance.

Lowe’s is in the retailing industry which consists of the sale of merchandise from a store location. Retailers are at the end of the supply chain. First, manufacturers produce the product and then sell it to a wholesaler. The retailer buys from a wholesaler in large quantities for lower prices to sell to the customer for profit. The retail industry involves a lot of inventorying and supply chain management. Without good operations management, retail stores don’t last very long because they might not be returning a profit. Lowe’s has been constantly improving its operations strategy, as well as management of operations such as inventory management and supply chain management. The Lowes management team insists their operation always undergoes improvements and changes to ensure the best quality and performance. Recently, Lowes made a huge operational decision and is closing 20 underperforming stores in 15 states and cut 1,950 jobs to allow operations management to focus on more profitable locations. Lowes also just released it will only open 10 to 15 new locations annually instead of its previously stated 25.

Lowe’s Home Improvement, founded in 1946, is a company that specializes in home improvement. From a small hardware location to the second largest home improvement retailer in the world; Lowe’s has come a long way. Now, Lowe’s operates 1750 stores nationwide and Mexico and Canada. The stores are comprised of 40,000 products in 20 different product categories. These range from appliances to tools, to paint, lumber, and nursery products. Lowes offers the world’s leading brands such as Kichler lighting, Porter-cable tools, John Deer lawn tractors, Whirlpool, and Samsung appliances. Lowe’s prides itself with their special 10% Everyday Low Price Guarantee. Approximately 238,000 employees make up the Lowe’s team. Thanks to its 15 million shoppers each week, Lowes made a whopping 47.2 billion in sales in 2009, ranking 47th on the Fortune 500 list.

Critical Competitive Factors and Priorities of the Operations Function

The most critical aspect of gaining orders and retaining customers is customer service. As the world’s second largest home improvement retailer, Lowe’s is offering customers more for their buck. Lowe’s is devoted to giving superior customer service so buyers have more incentive to return. Nothing inspires return customers like low prices and a great customer experience. To improve the customer experience and attract new customers, Lowes has a store credit card program. With the card, a customer can get 5 percent back on purchases or receive special financing options. Lowe’s also offers green products and services to better meet customer needs. With low energy home lighting systems available for sale and recycling centers setup at most stores; Lowes is very environment-friendly.

Management is trying to accomplish productivity improvement. Lowe’s realizes significant benefits through improved merchandising decisions. With more timely responses to information requests, cost reduction initiatives, enhanced employee productivity, and better service to their customers; Lowe’s expects great results.

The main operational issues for the year 2011 are technology issues and expenses. Management plans on improving these issues by using a lean system for expense control such as managing payroll and anticipating staff needs. Along with getting rid of excess inventory. Technology will be improved by updating computer devices and getting the iPhone for faster, easier processing. The operations manager will be evaluated by the success of the company over time, if they’re profiting or not. The goal is to ensure that business operations are efficient in terms of using as little resources as needed while still meeting customer needs. The management is concerned about the fulfillment of the company’s vision: customer valued solutions, great products, better prices and services.