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What is Discount What can we learn from ALDI and BIM? © Institute for Simplicity, Dieter Brandes & Nils Brandes.

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Presentation on theme: "What is Discount What can we learn from ALDI and BIM? © Institute for Simplicity, Dieter Brandes & Nils Brandes."— Presentation transcript:

1 What is Discount What can we learn from ALDI and BIM? © Institute for Simplicity, Dieter Brandes & Nils Brandes

2 Why is simple so difficult? © Institute for Simplicity, Dieter Brandes & Nils Brandes

3 Jetzt auf türkisch © Institute for Simplicity, Dieter Brandes & Nils Brandes

4

5 Complexity Institute for Simplicity, Dieter Brandes & Nils Brandes

6 1. work 2. efficient © Institute for Simplicity, Dieter Brandes & Nils Brandes

7 71 comple x simple Institute for Simplicity, Dieter Brandes & Nils Brandes

8 1

9 The Complexity Curve Complexity (cost) Number of components Number of options ´Number of items Number of employees Number of suppliers Number of customers Number of rules Number of... Elements © Institute for Simplicity, Dieter Brandes & Nils Brandes

10 Avoid Complexity © Institute for Simplicity, Dieter Brandes & Nils Brandes

11 1. limited Assortment 2. daily consumption 3. easy to handle 4. best Quality 5. lowest price © Institute for Simplicity, Dieter Brandes & Nils Brandes

12 600

13 Wenn uns bei der Kalkulation etwas beschäftigt, dann nur, wie billig wir eine Ware verkaufen können und nicht, welchen höchsten Verkaufspreis wir erzielen können – Karl Albrecht, 1953 © Institute for Simplicity, Dieter Brandes & Nils Brandes

14 Different Types624 Customer looked40 %60 % Customer bought30 % 3 % (15) (2) © Institute for Simplicity, Dieter Brandes & Nils Brandes

15 ALDI versus Wal Mart Items Sales ww Bil. USD Sales/Item Mil. USD 3,75 44 © Institute for Simplicity, Dieter Brandes & Nils Brandes

16 Reduce Complexity © Institute for Simplicity, Dieter Brandes & Nils Brandes

17 HAYIR ! © Institute for Simplicity, Dieter Brandes & Nils Brandes

18 HAYIR ! 1 Market Research Marketing Public Relations, Interviews Fancy offices, expensive company cars Staff Departments Budgets Data Warehouse Controlling Consultants © Institute for Simplicity, Dieter Brandes & Nils Brandes

19 -3- Manage Complexity © Institute for Simplicity, Dieter Brandes & Nils Brandes

20 Autonomy and Responsibility © Institute for Simplicity, Dieter Brandes & Nils Brandes

21 Delegation and Decentralization © Institute for Simplicity, Dieter Brandes & Nils Brandes

22 General Manager Sales Manager District Manager Store Manager Administration Manager Accounting PersonalIT Regional Purchaser Property Manager Logistics Manager Receiving Department Inner Transportation and Picking Dispatching / Truck Fleet... as much decentralized as possible – central only when necessary and reasonable CEO CPO Category Managers CFO AccountingIT COO Internal Auditor

23 © Institute for Simplicity, Dieter Brandes & Nils Brandes

24 Trust and Control 1 © Institute for Simplicity, Dieter Brandes & Nils Brandes

25 Trial & Error Trial & Error © Institute for Simplicity, Dieter Brandes & Nils Brandes

26 Optimize Maximize and Minimize Optimize Maximize and Minimize © Institute for Simplicity, Dieter Brandes & Nils Brandes

27 Real / actual numbers instead of plans and budgets Less (data) ist more Just enough is more © Institute for Simplicity, Dieter Brandes & Nils Brandes

28 Continuous improvements © Institute for Simplicity, Dieter Brandes & Nils Brandes

29 1 © Institute for Simplicity, Dieter Brandes & Nils Brandes

30 Genchi genbutsu © Institute for Simplicity, Dieter Brandes & Nils Brandes

31 Mark Twain Continuous improvements are better than delayed perfection Mark Twain © Institute for Simplicity, Dieter Brandes & Nils Brandes

32 1 Small is beautiful © Institute for Simplicity, Dieter Brandes & Nils Brandes

33 Details

34 341 © Institute for Simplicity, Dieter Brandes & Nils Brandes


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