Archive for October, 2007

Are your systems helping?

Saturday, October 20th, 2007

A couple of weeks ago, I had occasion to buy an industry specific reference book. In typical impulse mode, I called my local bookstore Books-A-Million, and inquired about the book. I’m a big fan of Books-A-Million, mainly because they’re an Alabama company, and I live in Alabama. I like spending my money close to home, and have as much of it stay in the local economy as possible. Here’s the paraphrased dialog:

Me> I’m looking for a book, and I have the ISBN number can you look it up?
Salesperson> Sure - what’s the ISBN?
Me> 0-7-6-4-1-3-2-6-3-6
Salesperson> I show we have two on the shelf. Let me check for you
Me> (Puzzled) - I’ll just come down there and get it. Thanks.
Salesperson> Let me check for you. Sometimes they are not in stock. Let me check for you.
Me> (Puzzled) Sure.

Salesperson> I can’t find it on the shelf. Shall I order it for you?
Me> No. I’ll keep looking. I’d really like it today
<Hangup>

This exchange was repeated 5 times that day, with various Books-A-Million stores, with the same results until one of the stores found the book on the shelf.

In the midst of this search, I dialed the local Barnes and Noble, looking for the same book. This exchange was much shorter, since the inventory system showed they didn’t have the book. Total time: less than 1 minute.

Which store has systems that help? Obviously Barnes and Noble. Books-A-Million has an inventory system that is very ineffective, and is probably a harbinger of ill times ahead. Consider the following points:

  • Books-A-Million has to dispatch a representative to check to see if a book is on the shelf when a customer calls. That costs money. In our case, probably $2 per store for Books-A-Million, and $.20 for Barnes and Noble
  • Books-A-Million is most likely overstating their inventory. When creditors hear that their loans are less secured than they originally thought, they won’t be happy
  • There may be a theft or shrinkage problem at Books-A-Million
  • Companies or employees that are being hired to perform inventory may be causing more harm than good. Two weeks before I searched for this book, at least one of the stores had performed inventory. I know because I was there on the Sunday morning that they were taking inventory

In any case, Books-A-Million has a potentially serious problem with their inventory system, and needs to have it checked. This system isn’t helping at all, and is causing harm. It’s most likely causing employee problems, since the employees can’t rely on it. It’s certainly costing them money. I appreciate the willingness of the store personnel to check the shelves for me, but I’d rather them save us both time by having an effective and reliable inventory system. Once they have that, they can provide the information online, and I can find the closest book to my house and go pick it up, without bothering anyone.