Implementing SOPs | How to Implement SOP |Standard Operating Procedures
The world is undergoing a seismic shift. Every day, markets become more volatile, businesses face more challenges, and organizations become more competitive. As a result, organizations need to increase efficiency and productivity. Whether you’re expanding your business, giving away franchises, automating your business processes, or reducing your involvement in everyday operations, implementing SOPs is critical. Furthermore, it ensures that your company’s employees are on the same page regarding goals, priorities, and protocols. No matter what type of business you run, working with standard operating procedures (SOPs) is crucial.
What is SOP ?
A Standard Operating Procedure is a detailed document that provides step-by-step instructions for completing a task within an organization or business. These manuals ensure that repetitive tasks are performed with enhanced accuracy and precision. An organization’s standard operating procedures provide its employees with standard expectations of a specific task. Well-defined SOPs are the basis for the success of any business, as they affect employee productivity as well as the company’s growth.
SOPs serve as the bible of your organization, answering all of the “WH” questions about every process within your organization, such as What? Why? Who? Where? When? & How? Using an example, let’s imagine we are writing an SOP for inventory audits at warehouses.
What is the process – Inventory Audit
Where will it take place – at Warehouse
How will it be conducted- Identify all the involved steps in the entire process.
Who is responsible – Warehouse Manager
Why do we conduct this audit – Performance Appraisal
And here goes the Inventory Audit SOP of the Warehouse.
For example, these could be the steps:
Step1: Collect the Inventory report from the software
Step 2: Scan the handheld scanner to check the inventory in each shelf/ bin/rack
Step 3: Take “Photos of their observations”
Step 4: If the inventory is short, the next process is ABC
Step 5: If the inventory is excess than the software quantity, the next process is XYZ.
Step 6: Mention the time & date of the Audit etc.
SOPs: What are their benefits?
SOPs are needed for internal stakeholders such as employees, investors, and external stakeholders such as vendors, the government, etc. It is your customer who matters most (and we all know how happy customers spread the word.) And last but not least, the company itself. SOPs will improve brand loyalty, company valuation, standardization, and customer experience. It helps every format and size of retail organization grow and progress at every stage, whether it’s a global chain, a regional player, or a small or mid-sized retailer. At each stage, SOPs should be tailored based on business challenges. It is therefore crucial to design SOPs that are tailored to fit your growth.
Retailers in Asia or MENA regions cannot use HR policies adopted by American retailers, for instance. As a result of cultural differences, festivals, and other factors, customer behavior also varies from region to region. As a result, there is no industry standard for the adoption of ready-made SOPs. If it is not custom-built, your stakeholders will not benefit from it.
The Takeaway Tip
A free tool that will help understand the operational health of your business by measuring the implementation of SOPs on a scale.
Retail Process Healthometer: https://mindamend.net/tools/retail-he
Your Retail Coach, YRC, offers retail and eCommerce consulting services to businesses around the world. In addition to helping brands make better decisions, we also assist them to convert those decisions into actions and achieve sustainable success. We have been helping our clients for the last 11 years to achieve better results, including results that are pragmatic, holistic, and enduring. Visit our blogs to learn more about retail & eCommerce.
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