Lead Time Reduction of Age UK Charity Shop

Overview

• UK's largest charity for

elder people.• 5 Aspects.• More than 450 Age UK

charity shop.• Offering a wide and ever-

changing range of goods.• Over 20 million customer

transactions

Government

Policy :• Gift Aid (HM

Revenue &

Customs).

Analysis

Social Factors:• Older people's incomes are stretched to the

limit.

• 1.6 million elder people living on or below the poverty line.

• Public funding of older people's social care reduced by 10%, with over 800,000 older people in England unable to get the care they need.Environmental factors:

• Maximise the value of undesired goods.

Challenges:Current Supply Chain Mapping

Day 1 Day 7

Unprocessed donation goods

Sorted new products

Unsorted goods + Obsolete goods

Sorted new products

Unsorted goods + Obsolete goods• Customer reduce inventory, but donor increase

inventory.

• Very short product life cycle due to its nature.

• None value added to the goods due to its

nature.

• Low profit made from each sale.

Recommendations:

• Reducing P time to provoke a shorter D time---Control

Possible solutions:• Increase employee training.• Provide structured training to attract more volunteers.• Increase the product renewal time to twice a week.

Sources

• http://www.thisismoney.co.uk/money/pensions/article-16797

80/New-state-pension-age-retire.html

2014/11/18

• http://www.ageuk.org.uk/ 2014/11/18

• https://www.gov.uk/government/policies/reviewing-the-state-

pension-age 2014/11/18

• http://www.digitaloutreach.org.uk/wp-content/uploads/

2013/01