Monday, March 8, 2010

Operational Efficiency

As an aspiring product designer, I've focused on how objects are made concerning materials but not necessarily on how this affects the business productivity. Therefore, I can think of several companies that are modeling innovative material use (such as Targus which offers vinyl free backpacks) but I struggle to identify operational advantages.

The first thing that came to mind is Berkeley grocery stores that sell local produce specific to northern California such as the Monterey Market.

The Monterey Market has partnered with several local farmers to provide fresh, seasonal produce to its customers. The store focuses primarily on produce with a limited variety of dairy products. They sell dry goods, such as grains and nuts, in bulk containers as well. They do not sell any meat products. The produce is displayed in large crates that sit in rows outside and inside the building.

The store does not need any warehouse or storage space - they display everything they have in the crates. The farmers are responsible to deliver their goods to the store on a weekly basis. The Monterey Market does not have to maintain as much as other grocery stores - with simple concrete floors, little refrigeration, no storage, and hand written signage. Their setup allows them to adjust very quickly to seasonal changes. They do not discriminate between large farms and small farms, providing both and allowing the customer to choose what they prefer. I think this is a good example of operational efficiency because it has been so successful. They have been able to sell a high quality product in an effective and trustworthy way. They have empowered the farmer to sell more directly to the customer.






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