Improvement Insights Blog
Why Retailers Lose Money
My wife ordered a set of monogrammed bath robes for our daughter and son-in-law from RedEnvelope. When they arrived, she checked them (unnecessaryinspection)…no monograms.
So she called (rework) and they told her to keep the two unmonogrammed ones (waste) and they would send two monogrammed ones.
A couple of days later, we did get two monogrammed bath robes (rework). The next day we got two more and the day after that we got two more (waste and rework). When we called (rework), they said, don’t return them because they’ve been monogrammed already.
So now, we have eight robes for the price of two. It probably cost RedEnvelope more than the order to replace them so many times.
This is what happens when the initial order goes wrong; sometimes the Fix-It Factory makes mistakes correcting the problem leading to more waste and rework.
Is your Fix-It Factory broken?
