Radio Shack 2003 Annual Report Download - page 12

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RadioShack’s intense focus on process improvement, specifically in the area of supply chain management, paid off in 2003 and promises to
drive more value into our business going forward.
In inventory management, we were able to reduce
our weeks of supply by 25%, exceeding our target.
With fewer slow-selling products on our shelves, we’re able to devote more space to our fast-moving items. Moving products to our
stores has also become more efficient. Relocating items among our regional distribution centers and revising our delivery schedules, for
example, generated faster and more efficient deliveries to our 7,000 company and dealer stores nationwide.The goal is to have the right
product, at the right price, in the right store at the right time.
Our field organization delivered $12 million in productivity improvements through smarter labor scheduling. Considering that a dollar’s
worth of productivity is the rough equivalent of $10 in sales, increased productivity produces powerful results to the bottom line.
In the area of products, we have now streamlined our product development process by nearly 50%. We’ve improved gross margins
through better vendor management, along with a more open relationship with our vendors. And we held the first of our Worldwide
Innovation Conferences last year specifically to inform leaders in research and development, manufacturing, product design and high
technology about how our Solutions Strategy presents tremendous business opportunities to forward-looking companies and institutions.
We’ve moved fast to enter lucrative agreements with several conference attendees, including Mobility Electronics, Inc., E.N.T. Exceptional
New Technologies Ltd., GlobeSecNine and Motorola, Inc. We will continue to work to identify partners with innovative ideas, technologies
and products that we can bring to market to meet the needs and wants of our customers.
We look at it as yet another process… open to continuous improvement.
RADIOSHACK 2003 Annual Report
10
Driving value:
Process Improvement
Our partnership with Mobility Electronics will lead to more
innovations like JuiceTM, the breakthrough adapter that automatically
senses power needs and uses Smart Tips to work with virtually
any portable device.