In the fast-paced world of retail, having the right people at the right time is more critical than ever. With rising wages and the surge of online shoppers, creating efficient and effective schedules can make or break a retailer’s success. But what does it take to master the art of advanced scheduling in this industry? Let’s delve into some of the key challenges and strategies that retailers face today.
Accurate Forecasting of Business Drivers
At the heart of any effective scheduling system lies accurate forecasting. Retailers need to predict business drivers such as transactions, units sold, and customer volume with precision. However, trust in these forecasts can be a significant hurdle. Many companies end up creating their own forecasts, defeating the purpose of using a fully integrated Workforce Management (WFM) system or basically one version of truth that is used for different purposes one of them being the short term Labor forecast.
Retail is inherently hard to accurately predict, with promotions, special days, moving holidays and seasonal variations. This makes forecasting challenging, but not impossible. With the right data setup—correctly mapping all events and promotions—the AI-driven forecast engines can significantly improve accuracy. These engines typically forecast drivers at a daily level and then use demand curves to distribute this forecast into smaller time increments (15 minutes, 30 minutes, or 1 hour). Even if the daily forecast is slightly off, the distribution ensures the right staff are scheduled at the right times throughout the day. One important thing to know is that when you are evaluating your forecast accuracy the weekly forecast is not the real determinator of your accuracy, you should always look at your daily values and the accuracy of your daily demand curve (the distribution). Your weekly forecast may show a 98% accuracy but when you look at the daily and intra-day accuracy you may see a significant variations which tells you that the forecast engine is not doing it’s job right.
Balancing Rules and Flexibility
WFM systems are designed to accommodate various policies and labor laws through configurable rules. However, introducing too many rules can stifle the system’s ability to create efficient schedules. Finding the right balance between hard and soft rules is crucial.
- Hard Rules: These are non-negotiable constraints that the system will not break, such as employee availability or minimum rest between shifts. Availability is something that I always ask my clients to evaluate, if the combined availability of staff at a certain location doesn’t align with demand, it leads to service gaps. Regular assessments are needed to ensure the availability has a chance to cover the demand, and adjustments might be necessary, whether through hiring or negotiating availability changes with current staff.
- Soft Rules: These are guidelines that the system will try to accommodate but can override if necessary. Soft rules offer the flexibility needed to optimize schedules without compromising compliance and operational efficiency.
Handling the Unpredictability of Retail
Retail’s unpredictable nature, driven by promotions, holidays, and market trends, makes it challenging to forecast demand accurately. However, advanced scheduling systems, powered by AI and machine learning, can adapt by analyzing historical data and adjusting to real-time changes. This adaptability helps retailers stay ahead, ensuring they have the right number of staff at peak times.
Integration with Other Systems
For a scheduling system to be truly effective, it must integrate seamlessly with other enterprise systems like HR, POS data warehouse, payroll, and analytics. This integration ensures that data flows smoothly across platforms, providing a holistic view of the workforce and enabling better decision-making.
Employee Engagement and Satisfaction
Modern WFM systems are increasingly focusing on employee engagement features, integrating tools that enhance the employee experience. Features such as shift trading, mobile access to schedules, and real-time communication improve staff satisfaction and retention. When employees have more control over their schedules and can easily communicate changes, it leads to a more motivated and productive workforce. This may mean that you may target a lower schedule efficiency knowing that you are improving employee satisfaction and reducing turnover. So again, finding that right balance is key for success.
Data Quality and Availability
The effectiveness of advanced scheduling relies heavily on the quality and availability of data. Accurate, real-time data is essential for these systems to function optimally. Retailers must invest in data management practices to ensure their scheduling systems receive the most accurate information possible. Poor data quality leads to poor scheduling outcomes, undermining the system’s benefits.
Conclusion
Advanced scheduling in retail is a complex but essential task. It requires a delicate balance between accurate forecasting, flexible rule-setting, seamless integration with other systems, and a focus on employee engagement. By addressing these challenges and leveraging the power of AI and machine learning, retailers can create schedules that not only meet their operational needs but also enhance employee satisfaction and customer service.
As the retail landscape continues to evolve, those who invest in advanced scheduling systems and best practices will be better positioned to thrive in an increasingly competitive market. So, are you ready to take your retail scheduling to the next level?